Delta CEO Richard Anderson Talks Good Q3
Delta Air Lines (NYSE: DAL) CEO Richard Anderson talked about his company's strong operations strategies and Q3 results on CNBC's Squawk Box on Tuesday, saying they've been able to capacitate their markets' demand while also seeing success with their global alliance partners.
"The domestic economy has been really quite strong over the summer, and we saw good strength in Europe particularly," he said. "The only weakness around the world really has been Japan with the yen. But separately, Delta has performed well above the industry in terms of unit revenue, free cash flow and margin expansion."
Anderson attributes the good Q3, which saw surges across profit and revenue with both up from the same quarter last year, to running a tight ship.
"First, we have run a really good operation," he noted. "We've had 40 days this year with no cancellations on our main line and our employees are doing a very good job with customer service. Second, we've really done well with our alliance partners around the world in terms of expanding our network through alliances in Europe, Latin America, Mexico, and in Asia."
"And lastly," he added, "I think we've just done a really good job of matching capacity to demand in our markets."
Cargo revenue was down 6.1 percent on declining freight yields for Delta in Q3, but Anderson called it the result of a "global phenomena."
"We've seen…weakness in cargo yields around the world," he said. "I think it's even reflected in FedEx (NYSE: FDX) and UPS (NYSE: UPS) numbers, at least with respect to airfreight, and I believe because of higher fuel prices and fuel surcharges, much more of the freight is moving by ocean or other means."
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