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Delta Air Lines announces $1.2B annual profit in ‘11
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Posted on Jan 31 2012
[B]ATLANTA[/B]—Delta Air Lines reported financial results for the December 2011 quarter. Key points include:
Delta’s net income for 2011 was $1.2 billion, excluding special items, as the company offset $3 billion higher fuel expense through strong revenue performance and its fuel hedging program.
Delta’s net income for the December 2011 quarter was $379 million, or $0.45 per diluted share, excluding special items. This is a $221 million improvement year over year.
Delta’s GAAP net income was $425 million, or $0.50 per diluted share, for the December 2011 quarter and $854 million for 2011.
2011 results include $264 million in profit sharing expense, including $89 million in the December quarter, recognizing Delta employees’ contributions toward meeting the company’s operating and financial goals.
Delta’s adjusted net debt at the end of 2011 was $12.9 billion, a $4.1 billion reduction from 2009.
“Delta people pulled together in 2011 to produce a solid profit, strong cash generation, and the best operational performance in the industry for our customers. I want to thank them for their hard work through a challenging year and congratulate them on earning $264 million in profit sharing and $60 million in Shared Rewards for their exceptional performance,” said Richard Anderson, Delta’s chief executive officer. “Looking forward to 2012, we will continue our commitment to sustained profitability and superior returns by growing and diversifying our revenues, while taking a disciplined approach to capacity, costs and capital spending.”
Delta’s operating revenue grew $610 million, or 8 percent, in the December 2011 quarter compared to the December 2010 quarter. Load factor increased to 81.7 percent, with traffic down 3 percent on a 3.5 percent decrease in capacity.
Passenger revenue increased 8 percent, or $555 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 12 percent, driven by an 11 percent improvement in yield.
Cargo revenue increased 8 percent, or $20 million, on higher cargo yields.
Other revenue increased 4 percent, or $35 million, from higher third-party maintenance revenue.[B][I] (Delta Air Lines)[/I][/B]
