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Monday, November 24, 2008

Domestic May Outperform Int’l in ‘09

Delta said that domestic advance bookings are running two points higher year over year, according to its latest Securities and Exchange Commission filing. However, in the wake of its announcement for a major international expansion, it reported that international books dropped four to five points. It is re-evaluating ’09 capacity plans on both fronts, said the airline in its filing, and expects to further reduce capacity to meet demand levels. JP Morgan Chase’s Jamie Baker indicated that domestic could outperform international next year, adding with oil at $50 per barrel, the industry could withstand an 11 percent revenue drop and still produce near-breakeven results.

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