Delta Air Lines has reported a sharply narrower loss for the month of May due to higher revenue and lower costs. These have helped offset a 35 percent rise in fuel prices.
May 2006 net income before reorganization items was $8 million.
As of May 31, 2006, Delta had $2.7 billion of unrestricted cash, cash equivalents and short-term investments.
Delta reported a net loss of $16 million in the month of May 2006, compared to a net loss of $140 million in May 2005.
Delta’s net income before reorganization items was $8 million for May 2006, a $148 million improvement versus the net loss in the prior year period. As of May 31, 2006, Delta had $3.8 billion of cash, cash equivalents and short-term investments, of which $2.7 billion was unrestricted.
In September 2005, Delta announced a comprehensive restructuring plan intended to deliver an additional $3 billion in annual financial benefits through revenue improvements and cost reductions by the end of 2007. During the month of May, the progress that Delta has made is reflected by:
A reduction in operating costs to achieve a mainline non-fuel CASM(1) of 6.95 cents for the month, a 2.8 percent decrease year over year. This unit cost improvement was achieved despite a 10.9 percent reduction in mainline capacity.
Improved consolidated passenger unit revenue of 10.77 cents, an 18.5 percent increase compared to May 2005.