Hedging drives $390m loss on fuel
Delta Air Lines has today (July 22) announced a second quarter net loss of $257m (€181m) including fuel hedging and merger costs.
Hedging by the US airline resulted in $390m (€275m) in fuel losses over the three months to June 2009, while Delta's merger with Northwest resulted in $58m (€41m) in costs.
Excluding special items and merger charges, Delta recorded a net profit of $191m (€135m).
Richard Anderson, Delta's ceo, said: "The industry faces substantial challenges from unprecedented revenue declines and volatile fuel prices, but Delta is the best positioned network carrier to weather these economic conditions.
"We continue to focus on cost discipline and preserving liquidity, while adjusting our fleet and network and accelerating merger benefits."
Year-on-year, Delta's Q2 operating revenue grew 27% to $7bn (€4.9bn) compared to $5.5bn (€3.9bn) the year before.
Delta said it expects system-wide capacity to fall 5% in the coming quarter, following a 6.7% drop in the last six months to June.
The airline has issued guidance which forecasts a 7% drop in international capacity and 4% down on domestic routes.
Delta's president Edward Bastian said: "The global recession continues to significantly impact our business and we are not planning for any meaningful recovery this year.
"In view of this revenue environment, we are focused on maintaining high levels of liquidity, generating a revenue premium, and maintaining our unit cost advantage."
Delta is the third major US airline to report a quarterly loss this week.
Continental and United Airlines reported Q2 losses on the same day of $213m (€159m) and $323m (€228m) respectively (see ABTN News July 21 2009).
US low cost carrier Southwest reported a profit for the first time in four quarters of $54m (€38m).
www.delta.com