According to a recent report, the Delta airlines has revealed its quarterly earnings to be $549 million. This was better than the expectation of many analysts and has also surpassed the figures given by the Wall Street.
Last year, almost all the sectors were impacted by recession and the aviation sector was not an exception. Therefore, the analysts were assuming that the Company would increase the costs for the business travelers and its customers.
On Monday, the Head of Delta had disclosed that in the coming year it is expecting its capacity to increase from 1% to 3% due to the increase in demand.
Helane Becker, an Analyst at Dahlman Rose, is of the view that the outcome of the capacity growth was exaggerated by the share holders as they did not consider the reductions made by the Airlines in 2009.
The investors were concerned that due to relaxation in capacity the incomes of the Company will decrease.
However, Becker disclosed that the shareholders need to understand that the Airlines are not going in for an overall increase in capacity.
In the previous years, the airlines were forced to reduce their capacity in the wake of reduction in demand recession and rise in the cost of fuel.