Delta registers biggest profits in ten years

20th Jul 2010
Delta registers biggest profits in ten years

Delta Air Lines, the world’s biggest airline by revenue, has reported its best quarterly results for a decade as the airline industry continues to rebound from the global downturn.

The US aviation giants cited a rising demand for travel, which increased its yields and allowed it to raise ticket prices. This came despite a rise in operating expenses over the quarter of $317m, partly due to higher fuel costs.

Net profit for the three months to the end of June came in at $467m – the airline’s first quarterly profit in two years – compared with a loss of $257m for the same period a year earlier. Revenue rose $8.2bn compared with $7bn a year ago.

Ticket prices were up 16.7 percent compared with a year ago while costs rose only 5.4 percent, helping the company to generate an operating margin of 11.4 percent, 10.6 percent better than a year ago.

Richard Anderson, chief executive, said: “Delta’s profit this quarter is our best result in a decade and proof that our plan has positioned us well as the economy begins its recovery.”


Passenger revenue increased by 19 percent, or $1.1bn, while cargo revenue rose by 22 percent, or $38m.

The airline also announced a $90m profit sharing scheme for employees.

For the full year, analysts expect Delta to report $1.2bn in net income on sales of about $31.6bn.


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