Delta Reports Narrower Loss in Q2 Thursday July 21, 7:28 am ET By Harry R. Weber, AP Business Writer Delta Reports Narrower Second-Quarter Loss, Says High Fuel Prices Limit Revenue Gains
ATLANTA (AP) -- Delta Air Lines Inc., the nation's third-largest carrier, said its second-quarter loss narrowed significantly compared to a year ago, but said persistently high fuel prices have limited the impact of solid gains in revenue.
The Atlanta-based company's results, announced before the market opened Thursday, beat Wall Street expectations.
Delta said it lost $388 million, or $2.64 a share, in the three months ending June 30, compared to a loss of $1.97 billion, or $15.70 a share, in the same period a year ago. The latest loss includes $6 million in dividends paid out to preferred shareholders.
Excluding one-time items, Delta said it lost $304 million, or $2.11 a share. On that basis, analysts surveyed by Thomson Financial were expecting a loss of $2.37 a share.
Revenue in the April-June quarter rose 5.7 percent to $4.19 billion, compared to $3.96 billion recorded a year ago.
"Delta's second quarter results reflect both the solid progress we are making in implementation of our transformation plan, and the substantial challenges we are facing," said Gerald Grinstein, Delta's chief executive officer.
However, he added, "Record-high fuel prices and other factors out of our control during the quarter outpaced our transformation initiatives and masked our progress. Our management team recognizes that further change is essential -- and it must be implemented with even greater speed -- if we are to achieve our goals in the increasingly competitive aviation marketplace."
The company is trying to avoid a bankruptcy filing, but has conceded at various points over the last few months that some things, especially fuel prices, are out of its control and could force its hand.
For the first six months of the year, Delta said it lost $1.46 billion, or $10.17 a share, compared to a loss of $2.36 billion, or $18.95 a share, for the same period a year ago. The current loss includes $11 million in dividends paid out to preferred shareholders. Six-month revenue rose 4.6 percent to $7.83 billion, compared to $7.49 billion a year ago.
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