Digging into yesterdays big sell off in DAL stock, we learn that the May revenue shortfall was due in large part to Southwest starting a fare war in Atlanta.
"After digging through several weeks of individual fare filings, it appears that Southwest disproportionately targeted Atlanta with sharply lower, promotional walk-up fares" in a May 18 fare action, Baker wrote, in a report issued shortly before the close. Of 200-plus affected markets, he said, 46 involved Atlanta, which is Delta's largest hub. For instance, the one-way Atlanta-Baltimore sale fare was $79 compared with a walk-up fare of $304, while Atlanta-Los Angeles was $209 compared with a walk-up of $404. The sale fares applied to travel between May 18 and June 6.