Delta Air Lines says its net income
for the September 2010 quarter was $929 million, representing an
$878 million improvement year-over-year, Delta's GAAP)
generally accepted accounting principles in the US) net income was
$363 million, or $0.43 per diluted share, for the September 2010
quarter.
Results include $185 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 $275 million.
The airlines also says it executed $750 million in debt reduction
and delivering initiatives during the quarter and ended the
September 2010 quarter with $5.5 billion in unrestricted
liquidity.
"This quarter's profit is evidence of
the success of our merger. We are making progress toward our goal
of consistent profitability with 10-12% annual operating margins
and we expect to be profitable for the December quarter," says Mr.
Richard Anderson, Delta's Chief Executive Officer, who also notes
that "these results would not have been possible without the hard
work and dedication of the Delta people and we are pleased to
recognize their contributions with an additional $185 million this
quarter for our profit sharing program."
The airlines says its total operating revenue for the September
2010 quarter was $9.0 billion, an increase of $1.4 billion, or 18%,
compared to the same period last year. Passenger revenue increased
19%, or $1.3 billion, compared to the prior year period on 2%
higher capacity; and passenger unit revenue (PRASM) increased 16%,
driven by a 16% improvement in yield, the airline also adds.
Further, cargo revenue increased 28%, or $50 million, on both
higher volume and yield. Delta says other, net revenue increased
9%, or $75 million, primarily due to baggage fees.
"Delta's revenue performance exceeded our expectations for the
quarter, with especially strong performance from our international
markets," said Ed Bastian, Delta's president. "We see demand
strength through the holiday period and expect solid year over year
unit revenue growth for the December quarter."
Delta says it hedged 51% of its fuel consumption for the September
2010 quarter, for an average fuel price of $2.29 per gallon.
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