Delta's profits increase despite the increase in fuel costs
Delta's profits increase despite the increase in fuel costs
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Delta Airlines
Inc.
DAL -2.26%
He said robust flight demand helped him overcome the increase in fuel prices during the last quarter, which could alleviate investor concerns that those costs would hamper the company's financial performance.
The Atlanta-based airline said domestic sales, its most important segment, increased 9.2% to $ 7.4 billion during the third quarter compared to the same period last year, with revenue per unit, a measure used by the airlines that calculate how much they earn for each Seat Flow a mile, increasing 3.3%.
Delta said earlier this summer that he would increase rates and add fewer flights to help manage the increase in fuel bills.
Total operating income of $ 11.95 billion for the quarter increased 8% compared to the same period last year, slightly less than the $ 11.96 billion expected by analysts surveyed by FactSet.
Delta shares rose 2.6% in pre-market operations.
The company made a profit of $ 1.3 billion, or $ 1.91 per share, during the third quarter. Profits increased 13% compared to the previous year.
On an adjusted basis, the company reported earnings of $ 1.80 per share. Analysts polled by FactSet predicted that the company would report adjusted earnings of $ 1.74 per share.
However, operating expenses increased almost 12% to $ 10.3 billion, the company said, and its fuel bill increased 40% to around $ 2.5 billion for the period.
Delta president Glen Hauenstein said in prepared comments that the airline saw "strong demand across the business." Premium ticket sales increased by about 20%, according to the company, while cargo revenues increased 19% to $ 226 million.
For the fourth quarter, Delta predicts earnings per share of $ 1.10 to $ 1.30, revenue growth of 8% and pre-tax profit margin of 9% to 11%.
Write to Micah Maidenberg in micah.maidenberg@wsj.com
SOURCE LINK ERESVIRAL.COM https://www.beviral.online
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