Delta and US Air report smaller than expected losses, shares soar
Delta Air Lines reported a widening in net losses of USD318 million in 1Q2011, or 38 cents per share, but it was better than market expectations, sending the airline's stock soaring 11.7% yesterday.
The airline's quarterly revenue surged 13% to USD7.75 million, while operating costs rose 12.8%, driven by a USD272 million increase in fuel costs. Delta forecasts a profit in 2Q2011 on the back of double-digit gains in unit revenue.
US Airways' shares gained 6.3% yesterday despite also reporting a bigger loss in 1Q2011 than the same period last year. US Air's loss came in at USD110 million, or 68 cents per share, against market expectations of a loss of 72 cents per share.
Selected American airline daily share price movements (% change): 26-Apr-2011