Tags: Delta | loss | air | line

Delta Posts Loss, but Expects Profits Going Forward

Wednesday, 25 Apr 2012 08:19 AM

Delta Air Lines Inc. reported a quarterly operating loss, but said it expects profits for the current second quarter and full year despite higher fuel costs.

Excluding special items, which amounted to a $163 million gain overall in the latest period, Delta had a loss of 5 cents a share.

Net income came to $124 million, or 15 cents a share, in the first quarter, compared with a loss of $318 million, or 38 cents a share, a year earlier.

The special items included $151 million in mark-to-market gained for fuel hedges that settle in future periods and a $39 million gain tied with the exchange of slots at New York and Washington, D.C., airports. There was also a $27 million charge related to fleet, facilities and other items.

Revenue rose 9 percent to $8.4 billion.

U.S. carriers have cut back service, added fees for luggage and raised ticket prices to address rising fuel costs and improve their financial performance following the 2008-09 downturn.

Atlanta-based Delta, the second-largest airline behind United Continental Holdings, has reduced flying to less-profitable cities, retired least fuel-efficient planes and consolidated facilities to cut costs. At the same time, it has also invested in new airplane seats and better food and wine offerings to boost sales.

As the skittish economy crimps activity in Europe and the United States, Delta is expanding ties in emerging markets to fuel growth. It has agreed to invest in Brazil's Gol Linhas Aereas and expanded a partnership with Aeromexico to increase access to those markets.


© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
254
2012-19-25
Wednesday, 25 Apr 2012 08:19 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved