Delta Reports $19 Million Quarterly Profit on Stronger Revenue

24 January 2011 8:11pm

Delta Air Lines reported a quarterly profit of $19 million, compared to a loss of $25 million at the same time last year, and an annual profit of $593 million. The results were among the best in Delta’s history, according to Richard Anderson, Delta’s chief executive officer. He said they reflect the success of Delta’s merger with Northwest Airlines as well as the carrier’s focus on cost discipline and debt reduction.

Passenger revenue increased 15 percent, or $889 million, compared to the prior year period on 7 percent higher capacity. Passenger unit revenue (PRASM) increased 8 percent, driven by a 9 percent improvement in yield.

Other revenue rose 14 percent mostly due to higher revenue from its frequent flyer program and other services. Load factor, the percentage of available seats filled, fell 0.6 percentage points to 81.1 percent from 81.7 percent a year earlier. Capacity increased 7 percent, after a prior-year drop of 8.2 percent.

Delta’s fuel price per gallon rose 14 percent. Operating expenses increased $644 million year-over-year due to higher fuel prices, volume- and revenue-related expenses, and profit-sharing expense, which were partially offset by incremental merger cost synergies.