Delta Q1 profit down 36%; recent disruption to cost US$125m
Delta Air Lines reported a Q1 2017 net profit of US$603m, down 36% from net income of $946m in the prior-year period, as fuel prices rose sharply year-over-year. The carrier said it expects to take a $125m hit in reduced pre-tax income in Q2 from the 4,000 flight cancellations resulting from severe thunderstorms April 5 and the subsequent problems in operational recovery over several days related to crew displacement. Delta said its Q1 adjusted fuel expense, which takes into account fuel hedging, increased $327m compared to the same period in 2016, citing 52% higher market prices for fuel. Delta’s Q1 revenue was down 1% year-over-year to $9.1b, while expenses increased 5% to $8.1b. Operating profit was $1.1b, down 32% from operating income $1.5b in the 2016 March quarter. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-04-13/sky/delta-q1-profit-down-36-recent-disruption-to-cost-us-125m
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Delta Q1 profit down 36%; recent disruption to cost US$125m
Delta Air Lines reported a Q1 2017 net profit of US$603m, down 36% from net income of $946m in the prior-year period, as fuel prices rose sharply year-over-year. The carrier said it expects to take a $125m hit in reduced pre-tax income in Q2 from the 4,000 flight cancellations resulting from severe thunderstorms April 5 and the subsequent problems in operational recovery over several days related to crew displacement. Delta said its Q1 adjusted fuel expense, which takes into account fuel hedging, increased $327m compared to the same period in 2016, citing 52% higher market prices for fuel. Delta’s Q1 revenue was down 1% year-over-year to $9.1b, while expenses increased 5% to $8.1b. Operating profit was $1.1b, down 32% from operating income $1.5b in the 2016 March quarter. <br/>
