Delta third-quarter profit nearly halves as fuel costs climb
Delta Air Lines reported a 47% fall in third-quarter net profit to $756 million, despite revenue rising 21% to $20.2 billion, as its fuel bill came in $500 million above its July forecast.
Delta Air Lines made $756 million in the third quarter, a 47% drop from a year earlier, after fuel costs rose nearly 70%.
Fuel cost the airline $500 million more than it had projected in July, Delta said. Revenue for the June-September quarter climbed 21% to $20.2 billion. Operating profit fell 14% to $1.5 billion, with total expenses up by a quarter to $18.7 billion.
Chief executive Ed Bastian said demand for air travel remains strong, citing consumers' growing preference for experiences and travel. Flying, he added, is still one of the best values in the consumer economy.
Bastian said pre-tax profit of $1.5 billion matched last year's result and that Delta has generated $1.9 billion in free cash flow so far this year. He credited the structural durability the airline has built over many years, saying it let Delta navigate one of the most elevated fuel environments in recent times.
Delta expects a full-year pre-tax profit of $4.5 billion, a figure that absorbs a $6 billion increase in fuel costs.
Sources
- flightglobal.comDelta third-quarter net profit almost halves as fuel bill soars