The results reported by Atlanta-based Delta for the April-June quarter were equivalent to 31 cents a share, compared to a loss of $1.04 billion, or $2.64 a share, a year earlier.
Excluding merger-related expenses, Delta would have lost $199 million, or 24 cents a share. The airline said it would have posted a profit of $191 million if it were to also exclude $390 million in fuel hedge losses.
Revenue in the quarter rose 27 percent to $7 billion, compared to $5.5 billion a year earlier before Delta completed its acquisition of Northwest Airlines. On a combined basis, total operating revenue declined 23 percent and total unit revenue declined 17 percent.
Analysts surveyed by Thomson Reuters, who generally exclude one-time items from their estimates, expected a loss of 29 cents a share on revenue of $6.94 billion.
In the quarter, consolidated unit costs, excluding fuel and special items, were up 2 percent as system capacity declined 7 percent.
"The industry faces substantial challenges from unprecedented revenue declines and volatile fuel prices, but Delta is the best positioned network carrier to weather these economic conditions," Chief Executive Richard Anderson said in a statement.
As of June 30, Delta had $5.4 billion in unrestricted liquidity, including $4.9 billion in cash, cash equivalents and short-term investments and $500 million available under an undrawn line of credit.
For the first half of the year, Delta lost $1.05 billion, or $1.27 a share, compared to a loss of $7.43 billion, or $18.79 a share, a year earlier. Six-month revenue rose to $13.68 billion, compared to $10.27 billion a year earlier. Delta acquired Northwest in October, during the fourth quarter of last year.
AIRTRAN
AirTran Holdings Inc., parent of discount carrier AirTran Airways, on Wednesday posted a $78.4 million second-quarter profit, as revenue fell almost 13 percent.
The Orlando, Fla.-based company's profit for the April-June quarter was equivalent to 56 cents a share, compared to a loss of $14.8 million, or 14 cents a share, a year earlier.
Revenue in the quarter fell to $603.7 million from $693.4 million a year earlier.
Excluding one-time items, profit would have been 34 cents a share in the latest quarter. Analysts surveyed by Thomson Reuters, who generally exclude one-time items from their estimates, expected profit of 32 cents a share on revenue of $601.1 million.
"We are proud of the continued extraordinary performance of our 8,500 dedicated crew members from coast to coast, and we are delighted to report significantly improved financial results as reflected by our strong quarterly net income," Chief Executive Bob Fornaro said in a statement.
AirTran, like other carriers, has cut capacity, sold and deferred aircraft and unwound fuel hedges to weather the economic downturn and the steep drop-off in air travel that has occurred as a result. However, its capacity reductions have been smaller that other carriers, and it has been adding service in some areas, including Milwaukee. It also has installed Wi-Fi connectivity on all of its planes and aggressively discounted fares to lure in passengers.
For the first half of the year, AirTran posted a profit of $107.1 million, or 78 cents a share, compared to a loss of $50.2 million, or 50 cents a share, a year earlier. Six-month revenue fell to $1.15 billion, compared to $1.29 billion a year earlier.
AirTran's hub is in Atlanta.
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