Delta Air Lines reported financial results for the September 2010 quarter, including net income of $929 million, excluding special items. This is an $878 million improvement year over year. Delta's GAAP net income was $363 million for the September 2010 quarter.
Delta’s results included $185 million in profit sharing expense, in recognition of Delta employees' achievements toward meeting the company's financial targets, bringing total profit sharing expense for the year to date to $275 million. Delta also executed $750 million in debt reduction initiatives during the quarter and ended the September 2010 quarter with $5.5 billion in unrestricted liquidity.
"This quarter's profit is evidence of the success of our merger [with Northwest Airlines]" said Richard Anderson, Delta's CEO. "We are making progress toward our goal of consistent profitability with 10-12 percent annual operating margins and we expect to be profitable for the December quarter. These results would not have been possible without the hard work and dedication of the Delta people and we are pleased to recognize their contributions with an additional $185 million this quarter for our profit sharing program."
Total operating revenue for the September 2010 quarter was $9 billion, an increase of $1.4 billion, or 18 percent, compared to the same period last year. Passenger revenue increased 19 percent, or $1.3 billion, compared to the prior year period on 2 percent higher capacity. Passenger unit revenue (PRASM) increased 16 percent, driven by a 16 percent improvement in yield. Other, net revenue increased 9 percent, or $75 million, primarily due to baggage fees.
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