Delta Air Reports Quarterly and Annual Profit

Delta Air Lines reported financial results for the December 2010 quarter of $158 million and a $1.4 billion annual profit, excluding special items. Delta's net income for the December 2010 quarter was $158 million excluding special items. This is a $383 million improvement year over year, Delta said. Delta's GAAP net income was $19 million 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."  

Total operating revenue for the December 2010 quarter was $7.8 billion, an increase of $1.0 billion, or 14 percent, compared to the same period last year. Passenger revenue increased 15 percent, or $889 million, compared to the prior year period on 7 percent higher capacity. Passenger unit revenue (PRASM) increased 8 percent, driven by a 9 percent improvement in yield."

“Through the momentum we built in 2010, we expect to maintain our March quarter margins year over year despite more than $350 million in higher costs from the recent steep run-up in fuel prices," said Ed Bastian, Delta's president. "Industry-wide fare increases, combined with growth in Delta's ancillary products and services, will provide a more long-term, revenue-based solution to addressing the high fuel environment."




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