Delta's profit dips 8% but tops Street's expectations
Delta Air Lines reported Thursday that Q4 profit slipped 8%, but the results still beat expectations as average prices for passengers continued to creep higher. The airline also raised its forecast of 2018 earnings, partly because it expects that a new, lower tax rate on businesses will help spur corporate travel. Delta, which earned nearly US$3.6b in 2017, doesn't pay income taxes because it is able to offset income with billions of dollars in losses from previous years. But the company expects to start paying taxes in 2019 or 2020 and believes that the new law will eventually cut its tax bill by $800m a year or more. Airlines are benefiting from strong travel demand that is resulting in many full flights and higher prices. At Delta, average fares and fees rose for the third straight quarter, reversing a 2-year slide. <br/>
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Delta's profit dips 8% but tops Street's expectations
Delta Air Lines reported Thursday that Q4 profit slipped 8%, but the results still beat expectations as average prices for passengers continued to creep higher. The airline also raised its forecast of 2018 earnings, partly because it expects that a new, lower tax rate on businesses will help spur corporate travel. Delta, which earned nearly US$3.6b in 2017, doesn't pay income taxes because it is able to offset income with billions of dollars in losses from previous years. But the company expects to start paying taxes in 2019 or 2020 and believes that the new law will eventually cut its tax bill by $800m a year or more. Airlines are benefiting from strong travel demand that is resulting in many full flights and higher prices. At Delta, average fares and fees rose for the third straight quarter, reversing a 2-year slide. <br/>
