Pain in Latin market coming?
09-26-2019, 07:45 PM
#4
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Joined APC: Jan 2015
Posts: 72
Is Miami going to be the next LA? https://www.google.com/amp/s/www.ajc.com/business/delta-spend-billion-stake-south-american-airline/FKjYXKaRL3DH7mu2Nf4rSO/amp.html
Delta to split SA between Miami and Atlanta. I see a large build up in Miami very soon. Pilot hiring at Delta is supposedly 1000-1500 next year with even larger number of FAs. I expect a strong push into Miami. I can see the A220 being a big player in Miami.
Delta to split SA between Miami and Atlanta. I see a large build up in Miami very soon. Pilot hiring at Delta is supposedly 1000-1500 next year with even larger number of FAs. I expect a strong push into Miami. I can see the A220 being a big player in Miami.
09-27-2019, 05:55 AM
#5
Gets Weekends Off
Joined APC: Nov 2013
Posts: 1,764
Originally Posted by lavService
Is Miami going to be the next LA? https://www.google.com/amp/s/www.ajc.com/business/delta-spend-billion-stake-south-american-airline/FKjYXKaRL3DH7mu2Nf4rSO/amp.html
Delta to split SA between Miami and Atlanta. I see a large build up in Miami very soon. Pilot hiring at Delta is supposedly 1000-1500 next year with even larger number of FAs. I expect a strong push into Miami. I can see the A220 being a big player in Miami.
Delta to split SA between Miami and Atlanta. I see a large build up in Miami very soon. Pilot hiring at Delta is supposedly 1000-1500 next year with even larger number of FAs. I expect a strong push into Miami. I can see the A220 being a big player in Miami.
Delta has already invested huge amounts into AeroMexico, not sure I have seen a big change.
Edit: Whatever happened to KDA?
Last edited by Arado 234; 09-27-2019 at 06:22 AM.
09-27-2019, 02:05 PM
#7
Gets Weekends Off
Joined APC: Mar 2016
Posts: 366
Originally Posted by lavService
Is Miami going to be the next LA? https://www.google.com/amp/s/www.ajc.com/business/delta-spend-billion-stake-south-american-airline/FKjYXKaRL3DH7mu2Nf4rSO/amp.html
Delta to split SA between Miami and Atlanta. I see a large build up in Miami very soon. Pilot hiring at Delta is supposedly 1000-1500 next year with even larger number of FAs. I expect a strong push into Miami. I can see the A220 being a big player in Miami.
Delta to split SA between Miami and Atlanta. I see a large build up in Miami very soon. Pilot hiring at Delta is supposedly 1000-1500 next year with even larger number of FAs. I expect a strong push into Miami. I can see the A220 being a big player in Miami.
09-27-2019, 02:36 PM
#9
Gets Weekends Off
Joined APC: Mar 2014
Posts: 3,094
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%.
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.
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