Delta Air Lines reports a $3.4 billion operating profit in 2013, meeting industry expectations of strong performance during the year.
The 56% operating profit jump followed a 3% increase in operating revenue to $37.8 billion on flat operating expenses of $34.4 billion, according to the Atlanta-based carrier.
Net profit was $2.7 billion before special items and $10.5 billion after a favourable $8 billion income tax benefit in the fourth quarter.
During the fourth quarter, operating income nearly doubled to $701 million on a 6% increase in operating revenue to $9.1 billion and a 2% increase in operating expenses to $8.38 billion.
Delta’s domestic revenues were strongest with a 9.1% increase during the quarter, while its Pacific revenues were weakest with a 1.6% decrease.
Net profit was $558 million before special items.
“Our December quarter profit caps off a successful year for Delta with strong profitability and margin expansion, industry-leading operations and significant improvements in customer satisfaction,” says Richard Anderson, chairman and chief executive of Delta, in a statement.
Traffic and capacity both rose 1% during 2013. Passenger revenue per available seat mile (PRASM) increased 3% to 14.15 cents and costs per available seat mile (CASM) excluding fuel and special items rose 2% to 9.14 cents.
In the fourth quarter, traffic rose 2% and capacity 3%. PRASM was up 3% to 14.07 cents and CASM excluding fuel and special items rose 1% to 9.29 cents.
The Trainer refinery posted a $116 million loss in 2013 after a $46 million loss in the fourth quarter.
Delta paid an average of $3.07 per gallon for jet fuel in 2013.
Source: Cirium Dashboard
