Delta surges back to profit in 2013
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Delta Air Lines returned to the black in 2013 with a strong first half performance.
The US-based airline posted a net profit of US$692 million for the first six months of the year – almost three quarters of a billion dollars better than the US$44m loss it posted in the first half of 2012.
While Delta’s operating revenues remained virtually flat, at US$18.21 billion, the airline managed to reduce its expense bill by 3%. This including a 12% reduction in fuel costs, which dropped from US$5.54bn to US$4.88bn.
Delta’s passenger demand, measured in revenue passenger miles (RPM), remained flat in the first half of 2013 – a positive result considering the airline cut its available seat capacity by 1%. This caused load factors to increase slightly, rising 0.6% percentage points to 83.1%.
“The combination of strong operational performance and the success of our revenue and sales initiatives once again allowed Delta to outperform the industry,” said Ed Bastian, Delta’s president. “Looking forward, we expect demand trends to remain solid which will lead to continued margin expansion against a backdrop of lower year-over-year fuel prices.”
Based in Atlanta, Delta is one of the world’s largest airlines, operating a fleet of 908 aircraft.
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