Delta Air Lines Announces $158 Million Quarterly Profit and $1.4 Billion Annual Profit, Excluding Special Items

ATLANTA, Jan. 18, 2011 /PRNewswire/ — Delta Air Lines (NYSE: DAL) today reported financial results for the December 2010 quarter.  Key points include:

Delta’s net income for the December 2010 quarter was $158 million, or $0.19 per diluted share, excluding special items(1).  This is a $383 million improvement year over year.

Delta’s GAAP net income was $19 million, or $0.02 per diluted share, for the December 2010 quarter.

Delta’s net income for 2010 was $1.4 billion, excluding special items.  Including $851 million in special items, Delta’s net income for 2010 was $593 million.

2010 results include $313 million in profit sharing expense, including $38 million in the December quarter, in recognition of Delta employees’ achievements toward meeting the company’s financial targets.

Delta’s adjusted net debt at the end of 2010 was $15.0 billion, a $2.0 billion reduction from prior year.

Delta ended 2010 with $5.2 billion in unrestricted liquidity.

“Our 2010 results are among the best in Delta’s history.  They would not have been possible without the dedication and determination of Delta employees worldwide and we are pleased we will pay more than $300 million in profit sharing for 2010,” said Richard Anderson, Delta’s chief executive officer.  “These results are a direct reflection of the success of our merger, cost discipline and debt reduction strategy and give us momentum to deal with the rising fuel prices we face in 2011.”

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Revenue Environment
Total operating revenue for the December 2010 quarter was $7.8 billion, an increase of $1.0 billion, or 14%, compared to the same period last year.

Passenger revenue increased 15%, or $889 million, compared to the prior year period on 7% higher capacity.  Passenger unit revenue (PRASM) increased 8%, driven by a 9% improvement in yield.

Cargo revenue decreased 7%, or $17 million, due to the elimination of freighter operations, partially offset by higher volume and yield.
Other, net revenue increased 14%, or $112 million, primarily due to higher SkyMiles revenue and revenues from ancillary products and services.

SOURCE Delta Air Lines