2019 YTD income
AA
Domestic - $640m (operating revenue $15.6b)
Latin America - $475m (operating revenue $3.1b) 15% margin
Atlantic - $1m
Pacific - (-$172m)
Delta
Domestic - $1.3b (operating revenue $16.6b)
Latin America - $184m (operating revenue 1.6b) 11% margin
Atlantic - $541m
Pacific - $133m
You can see by those numbers that despite our comparatively lower revenue in Latin America vs domestically, we make more money there on a % basis. If I'm reading the data right our margin in LA is roughly 4x what it is domestically.
Delta's numbers show how little profit they get from there, but that it is, most likely, the easiest place they can expand to increase revenue the quickest. Buying into LATAM was basically a way to buy feed for their flights I'm guessing, since LATAM doesn't really make any money on their actual ticket sales.
AA has said LATAM feed represents a nominal $20m a year revenue impact. However I think one impact will be all of a sudden having another competitor selling tickets side by side with them.
AA does 75% of the flying in MIA, Delta under 15%.
Last edited by Name User; 09-27-2019 at 02:59 PM.