American, Delta Report Results

Delta Air Lines reported a $137 million profit, excluding special charges for the second quarter of 2008, despite unprecedented fuel prices that increased costs by more than $1 billion. Including special charges of $1.2 billion, Delta’s reported net loss for the June 2008 quarter was $1 billion.

The airline also said that its merger with Northwest Airlines is targeted to close during the fourth quarter of 2008. Delta said it expects approximately $2 billion in annual merger-related synergies by 2012, with cash integration costs of approximately $600 million over three years.

AMR, the parent of American Airlines, reported a $284 million second quarter loss, excluding special items, and said that record fuel prices drove $838 million in higher costs.

AA also said its second quarter net loss of $1.4 billion included $1.2 billion in non-cash impairment charges and severance-related charges. American also said it ended the second quarter with $5.5 billion in total cash. AA’s net loss was $1.4 billion for the second quarter of 2008.