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.

Click here for CAPA's full earnings calendar.

Selected American airline daily share price movements (% change): 26-Apr-2011

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More