Delta Profit Tops Estimates

[Hatu]

Profit excluding some items increased to $844 million, or 98 cents a share, the Atlanta-based company said today in a statement. That topped the 95-cent average of estimates compiled by Bloomberg. Revenue fell less than 1 percent to $9.71 billion.

Delta’s fuel bill dropped 21 percent to $2.6 billion in the quarter. That offset declines in some fares, such as those in Japan, where the weaker yen against the dollar made tickets more expensive and hurt bookings.

http://www.bloomberg.com/news/2013-07-24/delta-profit-tops-estimates-as-fuel-s-drop-mutes-fare-weakness.html?cmpid=yhoo

 

[WorldTraveler]

nicely done despite weakness in the cargo market. Also, the refinery did lose money on a standalone basis due to regulatory requirements but overall fuel costs are down because of Trainer. DL's core passenger business is strong and profitable and they continue to build a strong business, esp. significant in light of the economic changes in Japan which have resulted in the weaker yen. Corporate revenues continue to grow; LHR and JFK are notably strong. DL's system RASM is 108% of the industry average. ATL margin continues to improve based on DL's structural changes and the reduced WN/FL footprint in ATL.

DL is getting out of some lower revenue MRO contracts.

Profit sharing of $118M.

Overall decreased fuel prices helped DL as well as other carriers. Non-fuel cost control is improving. Delta Connection continues to shrink in favor of DL mainline.