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World Cup Adversely Impacted Delta’s Performance

@denschaal

Jul 02, 2014 10:12 am

Skift Take

Delta found that business travel to Latin America took a vacation in June in deference to more important matters, the World Cup.

— Dennis Schaal

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Delta Air Lines

Interior cabin of a Delta Boeing 767 showing Delta employees trying out its Vantage business class seats. Delta Air Lines


While some travel companies may be feeling a World Cup lift, Delta Air Lines reported that the global soccer gala was one of the factors that adversely impacted its passenger unit revenue in June because it hurt business demand to Latin America.

Business trips to the region were apparently put on hold as road warriors gathered around TVs, computers and other devices to take in the futbol matches.

Delta’s consolidated passenger unit revenue (PRASM) in June rose 4.5% — a bit lower than analysts expected.

The Atlanta-based airline stated “continued corporate and domestic strength offset lower than expected international yields driven by industry-wide capacity increases and lower business demand to Latin America due to the World Cup.”

However, for the second quarter, which ended June 30, Delta’s unit revenue climbed 6 percent, which was consistent with the initial guidance it issued in late April.

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