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Delta Air Lines reports increase in profits

Delta Air Lines reports increase in profits

Delta Air Lines, among the largest carriers in the world, has reported a net profit of $2.7 billion, excluding special items, for 2013.

The figure represents an improvement of $1.1 billion from 2012, on revenue up three per cent at $37.8 bullion.

Including an $8 billion non-cash gain associated with the reversal of the company’s tax valuation allowance, it made a $10.5 billion net profit in 2013.

Full year operating costs remained near flat at $34.37 billion, with fuel expenses down seven per cent at $9.4 billion, resulting in an operating profit of $3.4 billon, a year-on-year increase of 56 per cent.

In the fourth quarter alone, Delta’s net profit came to $558 million, or $8.5 billion including special items, on revenue up six per cent at $9 billion.

Delta president Ed Bastian said: “With a solid demand environment, industry-wide capacity discipline and a number of Delta’s revenue initiatives already delivering benefits, we expect to produce significant margin expansion in the March quarter.

“As we move through the year, we expect to generate top-line revenue growth as we implement our Virgin Atlantic joint venture, continue to restructure and diversify our Pacific network, gain additional corporate share, and ramp up our merchandising efforts.”