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From Air Transport World January 19th. Good to see they have posted a profit for 2010.
Delta Air Lines posted 2010 net income of $593 million, a major reversal from a $1.24 billion net loss in 2009, but warned that a "hyped" fuel cost environment in which per barrel crude oil prices continue to exceed $90 poses a challenge to profitability going forward. Full-year revenue increased 13% compared to 2009 to $31.76 billion.
"We expect another year of profitability in 2011," CEO Richard Anderson told analysts and reporters Tuesday, expressing "guarded confidence" that DL will be able to "pass on" fuel cost increases via higher fares and ancillary charges. He added that the airline won't hesitate to cut capacity if the economic environment calls for it. "We have very low ownership costs on many of our airplanes, which allows us to quickly adjust capacity if necessary and we are prepared to do so," he commented. DL is projecting that first-quarter system capacity will be up 5%-7% compared to the 2010 March quarter.
Anderson said concern over rising fuel costs in part drove the airline to issue an RFP last month to "several major aircraft manufacturers" regarding a future order of as many as 200 firm aircraft with deliveries beginning in 2013 to replace aging DC-9s, Boeing 757-200s and Airbus A320s on mainline domestic flying (ATW Daily News, Jan. 17).
DL is "excited about the work Bombardier and Airbus are doing" regarding fuel efficiency improvements on the CSeries and A320neo respectively, he noted, adding that Boeing is "staying with legacy equipment as far as I know." He said Boeing will "be in the running" to win DL's narrowbody order, "but the [fuel burn] numbers will have to work … the numbers will speak for themselves."
Full-year 2010 expenses rose 4% to $29.54 billion, well behind the pace of revenue growth, producing an operating profit of $2.23 billion, turned around from a $324 million operating loss in 2009. Net profit in 2010 was affected by special items including more than $1 billion in interest expense. DL said its full-year net income would have been $1.4 billion absent special charges.
The carrier's 2010 consolidated traffic lifted 2% to 193.17 billion RPMs on a 1% rise in capacity to 232.68 billion ASMs, producing a load factor of 83%, up 1 point. Yield heightened 12% to 14.11 cents as PRASM increased 13% to 11.71 cents and CASM rose 3% to 12.41 cents. CASM ex-fuel was flat at 8.27 cents.
CFO Hank Halter pointed out that in addition to keeping nonfuel costs level, DL lowered its net debt to $15 billion as of Dec. 31, down $2 billion compared to Dec. 31, 2009. "To mitigate the pressure on our business from higher fuel prices in 2011, we remain committed to maintaining a competitive cost structure and paying down debt," he stated.
Fourth-quarter net income was $19 million, reversed from a net loss of $25 million in the prior-year period, on a 14% increase in revenue to $7.79 billion. It was DL's first fourth quarter profit since 2000.
Delta Air Lines posted 2010 net income of $593 million, a major reversal from a $1.24 billion net loss in 2009, but warned that a "hyped" fuel cost environment in which per barrel crude oil prices continue to exceed $90 poses a challenge to profitability going forward. Full-year revenue increased 13% compared to 2009 to $31.76 billion.
"We expect another year of profitability in 2011," CEO Richard Anderson told analysts and reporters Tuesday, expressing "guarded confidence" that DL will be able to "pass on" fuel cost increases via higher fares and ancillary charges. He added that the airline won't hesitate to cut capacity if the economic environment calls for it. "We have very low ownership costs on many of our airplanes, which allows us to quickly adjust capacity if necessary and we are prepared to do so," he commented. DL is projecting that first-quarter system capacity will be up 5%-7% compared to the 2010 March quarter.
Anderson said concern over rising fuel costs in part drove the airline to issue an RFP last month to "several major aircraft manufacturers" regarding a future order of as many as 200 firm aircraft with deliveries beginning in 2013 to replace aging DC-9s, Boeing 757-200s and Airbus A320s on mainline domestic flying (ATW Daily News, Jan. 17).
DL is "excited about the work Bombardier and Airbus are doing" regarding fuel efficiency improvements on the CSeries and A320neo respectively, he noted, adding that Boeing is "staying with legacy equipment as far as I know." He said Boeing will "be in the running" to win DL's narrowbody order, "but the [fuel burn] numbers will have to work … the numbers will speak for themselves."
Full-year 2010 expenses rose 4% to $29.54 billion, well behind the pace of revenue growth, producing an operating profit of $2.23 billion, turned around from a $324 million operating loss in 2009. Net profit in 2010 was affected by special items including more than $1 billion in interest expense. DL said its full-year net income would have been $1.4 billion absent special charges.
The carrier's 2010 consolidated traffic lifted 2% to 193.17 billion RPMs on a 1% rise in capacity to 232.68 billion ASMs, producing a load factor of 83%, up 1 point. Yield heightened 12% to 14.11 cents as PRASM increased 13% to 11.71 cents and CASM rose 3% to 12.41 cents. CASM ex-fuel was flat at 8.27 cents.
CFO Hank Halter pointed out that in addition to keeping nonfuel costs level, DL lowered its net debt to $15 billion as of Dec. 31, down $2 billion compared to Dec. 31, 2009. "To mitigate the pressure on our business from higher fuel prices in 2011, we remain committed to maintaining a competitive cost structure and paying down debt," he stated.
Fourth-quarter net income was $19 million, reversed from a net loss of $25 million in the prior-year period, on a 14% increase in revenue to $7.79 billion. It was DL's first fourth quarter profit since 2000.