Delta Air Lines Inc. (DAL) said first-quarter earnings surged,
with higher revenue and passenger demand.
The big U.S. airline's financial improvement came despite the
fact it cancelled more than 17,000 flights due to severe weather in
January and February, double the number of flights cancelled for
weather in 2013. Those cancellations resulted in $90 million of
lost revenue and $55 million lower pre-tax income, the company
said.
Delta reported profit of $213 million, or 25 cents a share, up
from $7 million, or a penny a share, a year earlier. Excluding
mark-to-market adjustments and other items, earnings were 33 cents
a share, up from 10 cents. Revenue rose 4.9% to $8.92 billion.
Analysts polled by Thomson Reuters expected per-share profit of
29 cents and revenue of $8.92 billion.
Delta earlier this year predicted it would generate stronger
revenue as it implements its joint venture with Virgin Atlantic
Airways Ltd. and continues to restructure and diversify its Pacific
network. Revenue has grown recently, helped by the sale of
ancillary products such as better seats, priority boarding and
other perks.
First-quarter passenger unit revenue, a key measure of
performance for the airline industry, rose 3.2%. Traffic increased
4% and capacity rose 2%. The portion of seats filled, or load
factor, rose to 82.7% from 81.2%.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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