Delta Q1 profit up 27%
Delta reported Q1 net income up 27% and indicated it may cut capacity after the summer if necessary to stop a decline in unit revenue. Delta earned US$946m in Q1, up 27% from US$746m in the same period last year. Delta's sales still face pressure though. The Atlanta-based company forecast that passenger revenue as measured against flight capacity would decline by between 2.5 and 4.5% in Q2, although that would be less steep than the 4.6% drop in Q1. "We are focused on getting unit revenues back to a positive trajectory, and we will make adjustments to… capacity levels if we are not making sufficient progress over the coming months," incoming President Glen Hauenstein said. The weakness of currencies against the US dollar lowered Delta's first-quarter sales by USD$125 million from a year earlier. The closure of Brussels' main airport after the March 22 attacks also chopped USD$5 million off revenue, which in total declined 1.5%, Delta said. Delta said costs as measured against flight capacity, excluding fuel, rose 4.5% in Q1, due largely to an additional US$136m in profit-sharing for employees. It expects the measure to rise less than 2% for 2016.<br/>
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Delta Q1 profit up 27%
Delta reported Q1 net income up 27% and indicated it may cut capacity after the summer if necessary to stop a decline in unit revenue. Delta earned US$946m in Q1, up 27% from US$746m in the same period last year. Delta's sales still face pressure though. The Atlanta-based company forecast that passenger revenue as measured against flight capacity would decline by between 2.5 and 4.5% in Q2, although that would be less steep than the 4.6% drop in Q1. "We are focused on getting unit revenues back to a positive trajectory, and we will make adjustments to… capacity levels if we are not making sufficient progress over the coming months," incoming President Glen Hauenstein said. The weakness of currencies against the US dollar lowered Delta's first-quarter sales by USD$125 million from a year earlier. The closure of Brussels' main airport after the March 22 attacks also chopped USD$5 million off revenue, which in total declined 1.5%, Delta said. Delta said costs as measured against flight capacity, excluding fuel, rose 4.5% in Q1, due largely to an additional US$136m in profit-sharing for employees. It expects the measure to rise less than 2% for 2016.<br/>
