Tuesday, Delta Air Lines (DAL) reported a loss for the fourth quarter that narrowed from a year ago, primarily on a better load factor and a decline in operating expenses driven by lower fuel costs.
Delta's net loss for the fourth quarter narrowed to $25 million or $0.03 per share from a net loss of $1.44 billion or $2.11 per share in the year-ago period.
Delta's net loss excluding special items for the quarter was $225 million or $0.27 per share.
On average, 11 analysts polled by Thomson Reuters expected the company to incur a loss of $0.24 per share for the quarter. Analysts' estimates typically exclude special items.
According to the Atlanta, Georgia-based airline, total operating revenue on a GAAP basis for the quarter increased by 1% to $6.80 billion from $6.71 billion a year-ago as a result of its merger with Northwest.
Seven Wall Street analysts estimated a revenue of $6.86 billion for the quarter.
"Our revenue performance this quarter showed indications of economic recovery with increased corporate travel demand, strong load factors and sequential RASM improvement each month," said Ed Bastian, Delta's president.
On a combined basis, total operating revenue declined nearly $1 billion, or 12% due to the global economic recession. Passenger revenue decreased 13%, or $878 million, compared with the prior year period on an 8% capacity reduction. Passenger unit revenue or PRASM declined 5%, driven by a 7% decline in yield and a 1 point improvement in load factor.
Cargo revenue declined 11%, or $32 million, reflecting lower yields and freighter capacity was 19% lower year-over-year due to Delta's decision to end all dedicated freighter flying by the end of 2009. The company said that other, net revenue declined 6%, or $53 million, primarily due to declines in administrative service charges which were partially offset by increased baggage fees.
According to the airline, consolidated revenue passenger miles for the quarter declined to $43.55 billion from $46.84 billion in the year-ago period.
Consolidated available seat miles declined to $53.32 billion from $58.09 billion in the prior year period.
The airlines' passenger load factor for the quarter was 81.7%, compared with 80.6% a year-ago.
Delta said that total operating expense for the quarter declined by approximately $1 billion to $6.85 billion from $7.81 billion a year-ago.
Rivals, American Airlines, Inc. also managed to narrow its loss for the fourth quarter as reduction in traffic slowed down after a while. On January 21, Southwest Airlines and Continental Airlines reported a profit for the fourth quarter on lower fuel costs and tax benefits.
At December 31, 2009, Delta had $5.4 billion in unrestricted liquidity, including $4.7 billion in cash and short-term investments and $685 million in undrawn revolving credit facilities. Operating cash flow during the December 2009 quarter was negative $75 million, reflecting the pre-tax loss and the seasonal declines in air traffic liability.
For the first quarter of 2010, the airline has forecast operating margin to be at breakeven, with capital expenditures of $400 million and total liquidity as of March 31, 2010 of $5.6 billion. The airline expects consolidated unit costs- excluding fuel expense, as well as mainline unit costs - excluding fuel expense to remain flat or increase 2%. System capacity as well as mainline capacity is expected to decline 3% - 5%.
For the year 2009, net loss narrowed to $1.23 billion or $1.50 per share from $8.92 billion or $19.08 per share in the year-ago period.
Excluding special items and $1.4 billion of fuel hedge losses, Delta's year-to-date net profit was $291 million.
Year-to-date operating revenue increased to $28.06 million from $22.69 million in the prior year-period.
Consolidated revenue passenger miles for the fiscal year declined to $188.94 billion from $202.72 billion a year-ago and available seat miles declined to $230.33 billion from $246.16 billion in the year-ago period. Passenger load factor was 82.0%, compared with 82.4% in the year-ago period.
The Street estimated a loss of $1.26 per share on a revenue of $28.12 billion for the fiscal year.
DAL is currently trading at $13.13, down $0.20 or 1.50%, on a volume of 8 million shares on the New York Stock Exchange.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.