Delta Air Lines Traffic Fell 3.8 percent as Airlines Reduce Capacity

Delta Air Lines traffic fell 3.8 percent in October at the sharpest pace since the beginning of last year as the airline reduced capacity.

Traffic fell 3.8%, the sharpest drop since the company reported a 5% decline in January 2010. Legacy carriers have encountered more difficulty in sustaining traffic gains recently. The carriers have kept fares up as they face higher fuel prices.

In addition, the traffic figures are going up against tougher comparisons to last year’s revival in travel demand. In the year-ago month, Delta reported 8.6% higher traffic, its strongest gain since the recession.

Delta also it decreased capacity 3.1% in October. As fuel prices climb, airlines are tightly managing their capacity to keep costs in check.

Load factor–a measure of plane fullness–fell to 82.8% from 83.4%, as worse occupancy on international flights outweighed better domestic travel.

Last month, Delta reported its third-quarter profit jumped 51% despite pressure for higher fuel costs as it improved the top line. However, fuel hedging effects kept core earnings lower than expected.

Shares were down 0.2% at $8.24 in recent trading, while the wider market was up broadly.