Delta Air Lines Posts Profit for 2007, Mum on Merger

Delta didn’t say much about its assumed merger talks Jan. 23 as it reported a fourth quarter loss of $70 million and a $418 million profit for all of 2007 when excluding reorganization items.

Delta, which emerged from bankruptcy April 30, attributed its fourth quarter loss primarily to higher fuel prices, and its full-year success in large part to its ongoing shift to more international services.

Only 20 percent of Delta’s capacity was on international routes in 2005, lagging far behind the international shift many carriers already had begun. But by this summer, 40 percent of its capacity will be deployed internationally. Delta executives said they are aiming for a 50-50 split.

Delta said the international shift contributed to its revenue improvement. Revenue increased 10 percent year-over-year in the fourth quarter to $4.7 billion, and 9 percent for the full year to $19.2 billion.

Regarding the airline’s reported merger discussions with Northwest and United -- with an eye to merging with one of them -- Delta CEO Richard Anderson said only that “the process is ongoing.”

The airline has hedged 75 percent of its first quarter fuel and 70 percent of full-year 2008 fuel at the equivalent of about $51 per barrel for crude oil. The price of crude was about $88 a barrel Jan. 23.