Delta expects a profitable 4th quarter
The world's largest airline beats earnings estimates and says continued strong demand will lead to more success.
By Ted Reed, TheStreet
The first major carrier to report third-quarter results said it earned $929 million, or $1.10 a share, excluding special items. Analysts had estimated 94 cents. Revenue rose 18% to $9 billion. Analysts had estimated $8.8 billion.
Including special items, Delta earned $323 million, or 43 cents a share. Special items were a $360 million noncash loss on extinguishment of debt, $153 million related to Comair's fleet reduction and $53 million in merger-related expenses. In the same quarter a year earlier, including special items, Delta lost $161 million, equivalent to a loss of 19 cents a share.
"We are making progress toward our goal of consistent profitability with 10%-12% annual operating margins, and we expect to be profitable for the December quarter," CEO Richard Anderson said.
During the quarter, consolidated passenger revenue per available seat mile rose 16%, driven by a 16% yield improvement. Pacific PRASM rose 45%, Atlantic PRASM rose 25%, and domestic PRASM rose 9%.
"Delta's revenue performance exceeded our expectations for the quarter, with especially strong performance from our international markets," president Ed Bastian said. "We see demand strength through the holiday period and expect solid year-over-year unit revenue growth for the December quarter."
On the cost side, consolidated unit revenue, excluding fuel and other items, was flat for the quarter as capacity rose by 2%. Costs increased by $577 million, primarily because of higher fuel prices, profit-sharing expenses and maintenance expense, partially offset by incremental merger cost synergies.
The carrier forecast an operating margin of 6% to 8% in the fourth quarter, with system capacity up 5% to 7%. Domestic capacity would rise by 3% to 5%, while international capacity boosts would total 10% to 12%.
...Delta's revenue performance exceeded our expectations...
It can even be stronger if they hadnt annoyed so many prior customers over issues like roominess!
Too bad they cant go back to the era when employees thought so highly of them they paid for a new airliner.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 shed less than a point, ending the week higher by 1.3%, while the Dow Jones Industrial Average (+0.1%) cemented a 1.7% advance for the week. High-beta names underperformed, which weighed on the Nasdaq Composite (-0.3%) and the Russell 2000 (-1.3%).
Equity indices displayed strength in the early going with the S&P 500 tagging the 2,019 level during the opening 30 minutes of the action. However, ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'