Delta's 2Q2011 profits fall on rising fuel

Delta revenue up 12% - financial highlights:

• Three months ended 30-Jun-2011:
  • Operating revenue: USD9153 million, +12% year-on-year;
  • Operating costs: USD8672 million, +19%;
    • Fuel: USD2663 million, +36%;
    • Labour: USD1739 million, +2%;
  • Operating profit: USD481 million, -44%;
  • Net profit: USD198 million, -58%;
  • Passenger traffic (RPMs): +0.9%;
  • Passenger load factor: 83.7%, -1.3 ppt;
  • Passenger yield: USD 15.67 cents, +11.5%;
  • Passenger revenue per ASM: USD 13.12 cents, +9.9%;
  • Operating cost per ASM: USD 14.42 cents, +15.7%;
  • Cost per ASM excl fuel and special items: USD 8.46 cents, +4.8%;
• Six months ended 30-Jun-2011:
  • Operating revenue: USD16,900 million, +13%;
  • Operating costs: USD16,511 million, +17%;
    • Fuel: USD4829 million, +33%;
    • Labour: USD3466 million, +3%;
  • Operating profit: USD389 million, -58%;
  • Net profit (loss): (USD120 million), compared to a profit of USD211 million in the p-c-p;
  • Passenger traffic (RPMs): +1.1%;
  • Passenger load factor: 80.2%, -2.2 ppts;
  • Passenger yield: USD 15.51 cents, +11.7%;
  • Passenger revenue per ASM: USD 12.43 cents, +8.7%;
  • Operating cost per ASM: USD 14.19 cents, +12.7%;
  • Cost per ASM excl fuel and special items: USD 8.70 cents, +3.8%;
  • Total assets: USD43,878 million, +1.6% when compared to period ended 31-Dec-2010;
  • Cash and cash equivalents: USD2855 million, -1.3% when compared to period ended 31-Dec-2010;
• 3Q2011 forecast:
  • Operating margin: +7% to +9%;
  • Capital expenditure: USD250 million;
  • Cost per ASM excl fuel and profit sharing: +2% to +4%;
  • Capacity (ASMs): Flat;
    • Domestic: -1% to -3%;
    • International: +2% to +4%. [more]

Delta: "A strong demand environment, combined with our corporate revenue share gains and great work by our entire team, resulted in top line growth of 12% and produced a unit revenue premium to the industry. Right-sizing our capacity, coupled with pricing initiatives and revenues from new products and services, position us well to continue to generate solid unit revenue improvements for the September quarter," Ed Bastian, President. Source: Delta, 27-Jul-2011.