Delta profits jump 18% in 2012
Delta Air Lines has posted a strong rise in full-year profits.
In 2012, the US-based airline generated net income of just over US$1 billion – 18% higher than the US$854 million profit it posted in 2011. The result was achieved following a 5% increase in passenger revenue, to US$31.8bn, combined with a reduction in some operating expenses, such as passenger commissions, contracted services and aircraft rental costs. The airline’s fuel bill increased just 4% year-on-year to US$10.2bn, but still accounted for almost 30% of Delta’s total operational expenditure.
Announcing the results on Tuesday (22 January 2013), Delta said the performance was “remarkable”, especially in light of the US$100 million negative impact of Superstorm Sandy in the fourth quarter of the year.
“Our investments in Delta’s network, products and operations, combined with our capacity discipline, have produced unit revenue growth that has outpaced the industry for 21 consecutive months,” said Ed Bastian, Delta’s president. “We have built strong revenue momentum going into the year with our customer-focused initiatives, corporate share gains, and capacity actions. As a result, we project a 4–6 percent year-over-year increase in March quarter unit revenues.”
Delta’s passenger traffic in 2012, measured in revenue passenger miles (RPM), ended the year unchanged compared to 2011, although a reduction in seat capacity allowed the airline to increase cabin load factors to an average of 83.8% for the year. Delta now operates a fleet of 717 aircraft.