satpak77
Marriott Platinum Member
- Joined
- Dec 2, 2003
- Posts
- 3,015
http://www.forbes.com/sites/heather...view-squeezed-by-fuel-costs/?partner=yahootix
Shares in Delta Airlines fell after the airline reported earnings that were soft of the analyst expectations, as strong fuel price pressure squeezed profits in the third quarter.
Excluding special items like fuel hedges, net profit fell 18% from a year ago to $765 million, or 91 cents per share. Analysts polled by Thomson Reuters were expecting net income of 93 cents.
Jet fuel expenses shot up 42% to $2.88 billion. The higher fuel costs increased costs in the quarter by $1 billion, making the airline’s fuel hedging and price increases crucial to edge out profit during the quarter, and escape a loss like the one that its rival American Airlines reported last week.
“We are successfully adapting Delta to the challenging economic environment by producing a solidly profitable quarter in the face of $1 billion of fuel price pressure,” said CEO Richard Anderson.
Capacity weakened slightly, decreasing 1%. Higher ticket prices resulted in an 11% gain in the average fare per mile. Top-line revenue increased 10% to $9.8 billion.
The Atlanta-based company plans to update its fleet between 2013 and 2018 with orders for aircraft from Boeing.
Shares were down 3.7% after the earnings at $8.57.
Shares in Delta Airlines fell after the airline reported earnings that were soft of the analyst expectations, as strong fuel price pressure squeezed profits in the third quarter.
Excluding special items like fuel hedges, net profit fell 18% from a year ago to $765 million, or 91 cents per share. Analysts polled by Thomson Reuters were expecting net income of 93 cents.
Jet fuel expenses shot up 42% to $2.88 billion. The higher fuel costs increased costs in the quarter by $1 billion, making the airline’s fuel hedging and price increases crucial to edge out profit during the quarter, and escape a loss like the one that its rival American Airlines reported last week.
“We are successfully adapting Delta to the challenging economic environment by producing a solidly profitable quarter in the face of $1 billion of fuel price pressure,” said CEO Richard Anderson.
Capacity weakened slightly, decreasing 1%. Higher ticket prices resulted in an 11% gain in the average fare per mile. Top-line revenue increased 10% to $9.8 billion.
The Atlanta-based company plans to update its fleet between 2013 and 2018 with orders for aircraft from Boeing.
Shares were down 3.7% after the earnings at $8.57.
