Bloomberg News

Delta Boosts Quarterly Profit Margin Outlook as Fares Increase

December 14, 2011

Dec. 14 (Bloomberg) -- Delta Air Lines Inc. raised its operating margin guidance for the current quarter to as much as 8 percent, from 5 to 7 percent previously, amid higher fares.

The world’s second-largest carrier reiterated plans to cut capacity by as much as 5 percent in the current quarter, most of it on trans-Atlantic routes, according to a regulatory filing today before an investor day event in New York. Unit revenue, a measure of fares, will jump 11 to 12 percent, the Atlanta-based company said.

Delta also reaffirmed plans to further trim capacity by 2 to 3 percent next year. United Airlines and Continental Airlines merged last year, surpassing Delta as the world’s biggest carrier.

--Editors: James Langford, Jeffrey Tannenbaum

To contact the reporter on this story: Mary Jane Credeur in Atlanta at mcredeur@bloomberg.net.

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net.


Video Game Avenger
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus