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Overview: Delta Air Lines' second quarter earnings

Part 2
Overview: Delta Air Lines' second quarter earnings (Part 2 of 10)

Must-know: Delta’s second quarter top line growth by segment

Delta’s second quarter growth by segment

Delta’s second quarter revenue increased by 9.4% year-over-year (or YoY) to $10,621 in 2Q14 driven by a 9% growth in passenger revenue and a 14.7% growth in other revenue. Delta’s (DAL) passenger segment revenue  accounted for 87% of the total operating revenue—similar to its legacy peers American (AAL) and United (UAL). For its low-cost peers, Southwest (LUV) and JetBlue (JBLU), passenger revenue makes up more than 90% of their total revenues. Unit revenue and yield increased by 5.7% and 3.8%, respectively, on a 3.2% increase in capacity.

Revenue growth_DAL2Q14Enlarge Graph

Cargo revenue, accounting for 2% of Delta’s revenue, decreased in the first and second quarter. In spite of the higher volumes in 2Q14, cargo revenue decreased by $2 million because of lower freight yields.

Other revenue, which accounts for 10% of Delta’s revenue, includes revenue from its frequent flyer program, baggage fees, ticket change fee, and ancillary businesses such as aircraft maintenance, repair, and overhaul (MRO) services, staffing services provided to third parties, vacation packages provided by MLT Vacations, and private jet operations.

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