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In Q2, roughly 74% of its passenger revenue came from the domestic market, compared to 69% for Delta. Slowing industry capacity growth and rising fuel prices are driving a domestic unit revenue recovery. Delta believes that its domestic PRASM could reach the flat line by December. American Airlines will benefit even more as domestic unit revenue trends strengthen. American Airlines is also well positioned in the international market. Latin America was the only geographic region where Delta returned to unit revenue growth last quarter. This was mainly driven by a sharp turnaround in Brazil, where PRASM surged 30% year over year. American Airlines is several times Delta’s size in Brazil. http://www.pfcdavidlawrence.org/trueisaacgarcia/2016/09/18/practical-concepts-for-medicine-programsThat means huge unit revenue gains there would have a significant impact on its overall results. PRASM slumped 25% year over year on American’s routes to Brazil in Q3 2015, offering lots of room for improvement.
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