Delta expects 15 jump in PRASM in 3Q2010, operating margin of 13%

Delta Air Lines released (14-Sep-2010) the following guidance for the three months ending 30-Sep-2010:

• System capacity: +2% year-on-year;
  • Mainline: +2% to +3%;
    • Domestic: +3% to +4%;
    • International: +2% to +3%;
• Load factor: 86%;
• Passenger revenue per ASM: +15%;
• Cost per ASM excl fuel*: +1% to +2%
• Operating margin*: 12% to 13%;
• Capital expenditure: USD350 million;
• Cargo and other revenue: USD1,100 million to USD1,200 million. [more]

*Includes profit sharing expense of USD170 million

Delta Air Lines expects unrestricted liquidity at the end of the Sep-2010 quarter to be lower than previous guidance, at USD5,600 million, due to the successful execution of USD750 million of debt reduction initiatives, from which the carrier expects USD125 million in annual savings.