Delta Air's earnings ballooned by items
NEW YORK (Reuters) - Delta Air Lines Inc. (DAL.N), which emerged from bankruptcy at the end of April, said on Wednesday that quarterly earnings surged on one-time reorganization items.
The No. 3 U.S. carrier by passenger traffic said second-quarter net profit jumped to $1.77 billion, or $4.49 per share, compared with a loss of $2.2 billion a year ago, when the company's shares were unlisted.
Excluding a $1.5 billion gain related to settling claims and revaluing assets, the company posted earnings of 70 cents per share, beating Wall Street estimates of 57 cents per share, according to Reuters Estimates.
"They've got momentum going coming out of bankruptcy. They hit the ground running hard," said Ray Neidl, an analyst with Calyon Securities. "It looks like their cost structure is a little bit lower than we thought."
Units costs, excluding expenses for fuel, profit sharing, and bankruptcy costs, dipped 0.6 percent in the second quarter.
"Our turnaround continues to take hold, but is not complete -- we must remain vigilant in driving revenue and cost improvements, especially in light of increasing fuel prices," Chief Financial Officer Edward Bastian said in a statement.
Operating revenue rose 5.5 percent to $5.0 billion on higher fares and fuller planes, with trans-Atlantic and Latin American routes especially strong.
After a 19-month, $3 billion restructuring in Chapter 11, Delta listed its new, post-bankruptcy shares on the New York Stock Exchange on May 3, opening at $21.75. They closed on Tuesday at $21.19.
