Banking Stock Review; UBS raises Loss from Unauthorized Trading to $2.3B
  • Earnings Review: Sify soars on Q1 Performance
  • Tech Stock in Focus; AuthenTec Review
  • " />

    Airline Stock Review: Delta Air Lines slips on Q2 Results

    Airline Stock Review: Delta Air Lines slips on Q2 Results

    Delta Air Lines Inc. (NYSE: DAL) shares are down sharply in today’s trading after the company released its second-quarter financial results, which were negatively impacted by higher fuel expense. Delta Air Lines shares dropped more than 5% to close at $7.61, with volume up from daily average of 14.12 million to 35.84 million.

    Delta Air Line reported a 12% year-over-year increase in second-quarter operating revenue. The airline reported a 1% increase in traffic on a 2.5% increase in capacity. Delta’s passenger revenue jumped 13% on a year-over-year basis, while its passenger unit revenue (PRASM) increased 10% on a year-over-year basis. The increase in PRASM was driven by a 12% improvement in yield partially offset by 1.3 point decline in the load factor. The airline’s cargo revenue increased 25% on a year-over-year basis on higher cargo volume and yield.

    Delta Air Lines reported second-quarter net income of $198 million, or $0.23 per diluted share. Excluding one-time items, the airline reported net income of $366 million, or $0.43 per diluted share, for the second quarter of 2011. During the second quarter Delta generated $1 billion in operating cash flow and $700 million in free cash flow.

    Richard Anderson, CEO of Delta Air Lines, said that high fuel prices are putting significant pressure on the airline industry but the benefits of Delta’s strategic actions and the dedication of Delta employees are evident in the solid profit the airline produced despite more than $1 billion in higher fuel expense. Anderson added that the airline’s revenue momentum, coupled with the capacity reductions it is making in September and actions to the its non-fuel costs to 2010 levels, will generate the margins needed to hit return targets.