Profits at Delta Air Lines hit by rise in fuel prices

Profits at Delta Air Lines hit by rise in fuel prices

Delta Air Lines has reported financial results for the September 2011 quarter, recording net income of $765 million, or $0.91 per diluted share.

Strong top line revenue growth of ten per cent year over year helped offset the $1 billion impact of higher fuel prices.

Results include $167 million in profit sharing expense, in recognition of Delta employees’ achievements toward meeting the company’s financial targets, bringing total profit sharing expense for the year to date to $175 million.

The company ended the September 2011 quarter with $5.1 billion in unrestricted liquidity.

“We are successfully adapting Delta to the challenging economic environment by producing a solidly profitable quarter in the face of $1 billion of fuel price pressure,” said Richard Anderson, Delta’s chief executive officer.

“Delta people worldwide are committed to building a leading global airline. 

Revenue Environment

Delta’s operating revenue grew $866 million, or ten per cent, in the three months to September 2011 compared to the September 2010 quarter. 

Load factor increased to 86.1 per cent, with traffic flat on a 1% decrease in capacity. 

Passenger revenue increased 10 per cent, or $793 million, compared to the prior year period.