Saturday, December 20th0.2°C
24124
23875

Delta Air Lines posts bigger-than-expected 4Q profit on traffic, fare gains

MINNEAPOLIS - Higher fares and growing traffic helped Delta Air Lines Inc. post a bigger-than-expected profit on Tuesday.

Delta's yield — a key measure of what each passenger pays to fly one mile — rose 4 per cent for the quarter. Airlines tried about a dozen fare increases last year. While most failed after competitors didn't match them, airlines still boosted yields by an average 2 per cent last year, according to the Airlines for America trade group.

Delta President Ed Bastian said demand for air travel is "solid," and Delta expects to see "significant margin expansion" in the current quarter.

Bastian also said the airline industry is showing restraint in how much flying it adds. The view on Wall Street has been that reining in growth will give airlines more power to raise fares. Delta expanded flying just 1 per cent last year. It said it expects to grow 2 per cent to 3 per cent in the upcoming quarter.

Delta said it expects its new joint venture with Virgin Atlantic to be profitable this year. CEO Richard Anderson said bankers in New York are especially interested in the flights, because Delta and Virgin America together have a fuller schedule between New York and London.

Not counting a non-cash adjustment for taxes, Delta earned $558 million, or 65 cents per share, for the quarter that ended Dec. 31. Revenue rose 5.5 per cent to $9.08 billion. Both figures were better than Wall Street analysts expected, not counting one-time items.

Including a one-time, $8 billion accounting benefit related to taxes, Delta's net income ballooned to $8.48 billion, or $9.89 per share.

After years of losses culminating in bankruptcy protection in 2005, Delta has posted four years of profits, including $2.7 billion in adjusted profits last year, not counting special items. Its past losses will cut its future tax bills, which amounts to an $8 billion asset being added to its balance sheet in the fourth quarter.

In the year-earlier quarter, Delta earned $7 million, or a penny per share, after Superstorm Sandy hurt profits.

Delta said its Trainer refinery near Philadelphia lost $46 million for the quarter because of tighter margins between the cost of crude oil and the market price for refined products like gasoline and diesel fuel. Delta said the same pricing issues helped reduce the price of jet fuel, though, reducing its overall fuel expense. The refinery should produce a "modest profit" this year as it shifts to using more U.S. crude oil, said Paul Jacobson, Delta's chief financial officer.

Shares of Atlanta-based Delta air Lines Inc. rose 94 cents, or 3 per cent, to $32.01 in afternoon trading.

The Canadian Press


Read more Business News

24175


Recent Trending




Today's Market
S&P TSX14468.26+121.51
S&P CDNX676.54+11.04
DJIA17804.8026.65
Nasdaq4765.38+16.983
S&P 5002070.65+9.42
CDN Dollar0.8618+0.0001
Gold1197.20+2.50
Oil56.50+2.39
Lumber336.20-0.70
Natural Gas3.446-0.196

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.03
Cantex0.03-0.005
Anavex Life Sciences0.1726+0.0026
Metalex Ventures0.05-0.005
Russel Metals25.58-0.42
Copper Mountain Mining1.55-0.02
Colorado Resources0.120.00
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.05-0.005
Mission Ready Services0.215-0.01

 
23744


23981

FEATURED Property
21508432545 O'Reilly
4 bedrooms 3 baths
$574,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...

_





24386


Member of BC Press Council


23546