Delta posts $467 mn profit in second quarter

Delta Air Lines Inc reversed a second-quarter loss with what it says is its largest quarterly profit in a decade thanks to strong passenger revenue.

The world's largest airline said Monday its net income was $467 million, or 55 cents per share, in the April-June quarter. That compares to a loss of $257 million, or 31 cents a share, a year earlier.

Delta's revenue rose 17 per cent to $8.17 billion from $7.00 billion a year earlier.

Excluding one-time items, Delta said earnings came to 65 cents a share. On that basis, analysts were expecting earnings of 63 cents a share on revenue of $8.25 billion.

The strong results came even as Delta's expense for aircraft fuel and related taxes rose 8 per cent in the quarter to $1.96 billion.

Delta had $6.0 billion in unrestricted liquidity, including $4.4 billion in cash, as of June 30. Its third-quarter capacity will be flat to up 2 per cent.

Delta said the momentum should continue. The airline expects to report double-digit year-over-year unit revenue gains for the September quarter.

In the latest quarter, passenger unit revenue increased 19.4 per cent, driven by higher yields and occupancy. Cargo revenue increased 22 per cent.

Delta said its latest results included $90 million in profit sharing expense.

Chief Executive Richard Anderson said in a statement that the results are "proof that our plan has positioned us well as the economy begins its recovery."

The last time Delta reported a quarterly profit close to what it reported in the latest quarter was in the second quarter of 2000, when it posted net income of $376 million.