2013 Predictions ... good for Delta
- SWA + AirTran is learning that Southwest's cost structure is making it impossible to make a profit on a substantial amount of AirTran flying. Expect less SWA + AT flying at PHL and expect they will de-hub ATL, making ATL a O & D airport.
- If US Air and American get together (which appears likely) expect a shift from JFK to PHL as they take advantage of US Air's feed network. In balance, there will probably be a shift from PHX to DFW.
- Delta current spills a lot of revenue which is not being carried on 50 seaters. The 76 seat jet provides 52% more seats for around 13 to 16% more cost. The revenue picture is prettier still. The 717 will also capture some of this revenue, but costs more and offers a bit too much capacity. ( still need a 100 seater )
- Continued revenue growth for Delta and some of the capital expenses (terminals in NYC, our new RJ alter ego, and an oil refinery) will pay off in 2013. I think we're winning New York.
Source - Boyd group, with spin from yours' truly...