Delta reports record annual net profit in 2010

[FWAAA]

Delta Air Lines Announces $158 Million Quarterly Profit and $1.4 Billion Annual Profit, Excluding Special Items

Reports GAAP quarterly profit of $19 million and annual profit of $593 million

Jan 18, 2011

ATLANTA, Jan. 18, 2011 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today reported financial results for the December 2010 quarter. Key points include:

Delta's net income for the December 2010 quarter was $158 million, or $0.19 per diluted share, excluding special items(1). This is a $383 million improvement year over year.
Delta's GAAP net income was $19 million, or $0.02 per diluted share, for the December 2010 quarter.
Delta's net income for 2010 was $1.4 billion, excluding special items. Including $851 million in special items, Delta's net income for 2010 was $593 million.
2010 results include $313 million in profit sharing expense, including $38 million in the December quarter, in recognition of Delta employees' achievements toward meeting the company's financial targets.
Delta's adjusted net debt at the end of 2010 was $15.0 billion, a $2.0 billion reduction from prior year.
Delta ended 2010 with $5.2 billion in unrestricted liquidity.

"Our 2010 results are among the best in Delta's history. They would not have been possible without the dedication and determination of Delta employees worldwide and we are pleased we will pay more than $300 million in profit sharing for 2010," said Richard Anderson, Delta's chief executive officer. "These results are a direct reflection of the success of our merger, cost discipline and debt reduction strategy and give us momentum to deal with the rising fuel prices we face in 2011."

http://news.delta.com/index.php?s=43&item=1244

$1.4 billion net (excluding special items) is impressive given the challenges of 2010.

 

[WorldTraveler]

good news but note that DL missed analyst estimates as fuel prices pushed costs up... goes to show how easily the current turnaround can evaporate if fuel gets out of control.

Also note that even though the Pacific was DL's fastest growing region, it also generated the largest increase in RASM. Asia may not always be the cash cow but for right now it is and DL will continue to milk it as long as it can.

Finally, all DL employees should be glad to see that mainline capacity grew while regional capacity did not.... not many US airlines are doing that.

 

[whatkindoffreshhell]

My compliments to DL. I've flown the DTW-HKG direct and even though it was a sixteen-hour flight I was impressed by the service.

Count me as a reformed believer. I did not think the NW merger would work. But even those 'seasoned' ex-NW flight attendants were a pleasure!

 

[WorldTraveler]

My compliments to DL. I've flown the DTW-HKG direct and even though it was a sixteen-hour flight I was impressed by the service.

Count me as a reformed believer. I did not think the NW merger would work. But even those 'seasoned' ex-NW flight attendants were a pleasure!

There were alot of people who rightly believed based on history that the odds were against DL to make this merger work. I am often accused of being beyond loyal to DL but I think there are very valid reasons why the DL-NW merger will stand as unique in the history of aviation....

unlike CO/UA, DL/NW wasn't created from a "complete" network... UA/CO in many ways prided itself as being the merger that produced the "perfect" network - UA was often said to have had the best network in the US industry - but it was precisely the fact that DL/NW required work to be completed - that allowed DL to put its own mark on the new company and its network. DTW is a perfect example - a former NW hub that has seen its Asian presence more than double as former DL aircraft are used to create the strongest US-Asia gateway outside of the east coast.

DL and NW had very similar costs so there was little incentive to play one company against each other as is being seen in UA/CO where CO has lower costs.

Even if you don't agree with what DL is doing, you have to agree that DL's changes to the labor environment of the airline industry is unprecedented and probably will never happen again.




I could go on... but suffice it to say that I think history will look very kindliy on DL/NW and on the people that made the merger work - and that is a whole lot of people from "both sides".....

 

[Bob Owens]

Ok, glad to see a passenger carrier posting profits. Now, why are their mechanics still working for $12/hr less than mechanics at UPS and $7/hr less than Southwest?

 

[southwind]

Ok, glad to see a passenger carrier posting profits. Now, why are their mechanics still working for $12/hr less than mechanics at UPS and $7/hr less than Southwest?

I know, I know................a union will fix everything !

I'm sure your added in your profit-sharing check.............right ?