24-Apr-2013 2:51 PM
Delta Air Lines reports sharp profit declines in 1Q2013
Delta Air Lines revenue up 1% - financial highlights for three months ended 31-Mar-2013:
- Total operating revenue: USD8500 million, +1% year-on-year;
- Passenger: USD7333 million, +1%;
- Cargo: USD238 million, -2%;
- Total operating costs: USD8278 million, +3%;
- Fuel: USD2289 million, +3%;
- Labour: USD1911 million, +8%;
- Operating profit: USD222 million, -42%;
- Net profit: USD7 million, -94%;
- Passenger traffic (RPMs): -1%;
- Passenger load factor: 81.2%, +1.5 ppt;
- Passenger yield: USD 17.02 cents, +2%;
- Passenger revenue per ASM: USD 13.83 cents, +4%;
- Operating cost per ASM: USD 15.61 cents, +6%;
- Total assets: USD45,068 million, +1.2% when compared to period ended 31-Dec-2012;
- Cash and cash equivalents: USD2636 million, +9.1% when compared to period ended 31-Dec-2012;
- 2Q2013 forecast:
- Capacity: Flat to +1%;
- Domestic: +1% to +2%;
- International: Flat to -1%;
- Consolidated unit costs excl fuel and profit sharing: +4.5% to +5.5%;
- Operating margin: 9% to 11%. [more - original PR]
- Capacity: Flat to +1%;
Delta Air Lines: "We are taking actions to mitigate the decline in close-in demand we saw in the last part of March, and we expect the impact of the sequester, combined with a softening of leisure demand, to result in a 2-3% decline in April's unit revenues. However, a key benefit from a consolidated industry is that we now see a much stronger correlation between revenue and fuel; so while we are seeing some revenue softness, we are also benefitting from lower fuel costs, allowing us to continue our path of margin expansion even in a sluggish economic environment," Ed Bastian, President. Source: Company statement, 23-Apr-2013.