Delta posts 3Q profit on international strength

AP News
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Posted: Oct 20, 2010 8:19 AM
Delta posts 3Q profit on international strength

Delta Air Lines Inc. said Wednesday it posted a profit in the third quarter and expects to repeat that in the last three months of the year, as the global travel recovery is driven by international growth.

Delta, the leading U.S. carrier to Asia, made 54 percent more money from passengers on flights to and through Asia this summer than a year ago. It has added 12 new nonstop trans-Pacific routes since 2008. Sales from flights over the Atlantic jumped by 25 percent. Domestic and regional flight revenue grew the least, at 12 percent apiece.

The Atlanta company had net income of $363 million, or 43 cents per share, for the quarter. That compares with a year-earlier loss of $161 million, or 19 cents a share. Not counting one-time items, it recorded an adjusted profit of $929 million, or $1.10 a share.

Revenue rose 18 percent to $8.95 billion.

Thomson Reuters says analysts expected a profit of 94 cents per share on revenue of $8.82 billion.

Passenger revenue rose 19 percent on higher demand and ticket prices, while revenue from cargo shipments surged 28 percent on higher volume and prices. Higher baggage fees also drove results.

In premarket trading Wednesday, Delta shares were up 40 cents, or 3.4 percent, to $12.10.