Originally Posted by
sailingfun
Apple does not selling what is essentially a perishable commodity. Airlines do. It's possible in this industry to generate a very small revenue premium with a large network and superior service. Take a look at the 2013 airline data and you will see how narrow a range that is for the major US airlines.
A 2014 outlook might be a better benchmark to draw from...
Investment Flies High With Delta Airlines - Delta Air Lines, Inc. (NYSE
AL) | Seeking Alpha
Delta has one of the lowest fuel prices in the industry. Owning a refinery and hedging should bring $350 million in fuel-cost saving for 2014.
The present macro environment is a high-flying time for the aviation industry. World passenger load factor (percentage of seats filled with passengers) is at historic high. In this climate, Delta Airlines (NYSE
AL) has posted super-strong result better than the industry.
Savings coming from cost management and a stronger top line have granted Delta with free cash flow of more than $1.5 billion.
Going forward, Delta predicts that its operating margin will grow to about 15-17% in the third quarter on continued gains from its cost reduction measures and market growth.