Delta Air Lines Reports Quarterly Results

Delta Air Lines reported financial results for the March 2012 quarter.

"Our March quarter improvement in results and operations are further evidence of the building momentum at Delta. I want to thank Delta employees worldwide for the hard work that produced these results," said Richard Anderson, Delta's chief executive officer. "By staying true to our plan and doing more of the same -- increasing revenues, maintaining discipline with costs, capacity and capital, running a great operation and taking care of our employees and customers -- we expect the June quarter and full year will be not only solidly profitable but also a significant improvement over last year, despite higher fuel prices."

In a release on April 25, the Company reported that for the March quarter, its on-time arrival rate improved by 7.3 points to 87.3 percent and its completion factor increased 2.8 points to 99.6 percent. DOT baggage performance improved by 31 percent and DOT customer complaints for January and February dropped by 53 percent. Delta employees earned $22 million in Shared Rewards for achieving all of the quarter's operational goals.

Delta's operating revenue grew $665 million, or 9 percent, on 3 percent lower capacity in the March 2012 quarter compared to the March 2011 quarter. Despite lower capacity, traffic increased 1 percent as load factor increased 3.3 points to 79.7 percent.

-Passenger revenue increased 10 percent, or $651 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 14 percent, driven by a 9 percent improvement in yield.

-Cargo revenue decreased 2 percent, or $6 million, with lower cargo yields partially offset by higher volumes.

-O ther revenue increased 2 percent, or $21 million, from higher third-party maintenance revenue.

"By staying disciplined with capacity, making the right investments in our products, and pricing for what customers value, Delta has again generated a revenue premium to the industry," said Ed Bastian, Delta's president. "Customer demand remains solid with strong gains in corporate revenue and as a result, we expect our June quarter unit revenue improvement will continue to lead the industry."

More information:

delta.com

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