The second largest U.S. airline Delta Air Lines Inc. ( DAL ) reported second quarter 2012 adjusted e

The second largest U.S. airline Delta Air Lines Inc. ( DAL ) reported second quarter 2012 adjusted earnings of 69 cents per share. The quarter s earnings were a penny ahead of the Zacks Consensus Estimate thanks to falling fuel prices, fare hikes and the ongoing cost-cutting measures.
Adjusted net income excludes $561 million of fuel hedging losses, $171 million of severance costs and $22 million of cost related clarion hotel fort worth to other streamlining actions. Including these charges, Delta reported a loss of 20 cents in contrast to earnings of 23 cents in the year-ago quarter.
Revenue increased 6% year over year to $9.73 billion in the reported quarter and inched past the Zacks Consensus Estimate of $9.7 billion. On an annualized basis, Passenger, and Other revenues grew 7% and 2%, respectively, while Cargo revenue dipped 1%.
Airlines traffic, measured in billions of revenue passenger miles, inched up 0.3% year over year. Capacity or available seat miles fell 1.3% while load factor (percentage cruising guide quebec of seats filled with passengers) grew 140 basis points year over year to 85.1%. cruising guide quebec Passenger revenue clarion hotel fort worth per available cruising guide quebec seat mile (PRASM) or unit revenue rose 8% year over year, led by a 9% increase clarion hotel fort worth in PRASM in both Atlantic and Pacific.
Consolidated clarion hotel fort worth unit cost or cost per available clarion hotel fort worth seat mile (CASM), cruising guide quebec excluding fuel and special items, crept up 3.6% and CASM, including fuel and special items, increased 12.1% year over year in the reported quarter.
Delta Air Lines balance sheet continues cruising guide quebec to be strong. At the end of June 2012, the company had $5.3 billion in unrestricted liquidity including $3.5 billion in cash and short-term investments, and $1.8 billion in undrawn revolving clarion hotel fort worth credit facilities.
The company reduced its adjusted net debt to $12.1 billion from $12.2 billion at the end of the prior quarter. Delta has attained approximately $5 billion of debt reduction over the past two years. Management is on track to minimize it to $10 billion by the next year.
For the third quarter, Delta Air Lines expects operating margin in the range of 10 12% and consolidated unit cost, excluding fuel, to grow 5 6% year over year. Additionally, the company expects domestic cruising guide quebec flying to decrease 0 2% year over year and international flying to decrease 3 5% year over year.
Going forward, Delta expects to remain profitable as it continues to reap benefits from the investments cruising guide quebec made to improve operating efficiencies and customer experience. Further, the company targets $1 billion in cost savings over the next two to three years largely driven clarion hotel fort worth by its domestic fleet revamp.
cruising guide quebec We remain impressed with Delta s initiatives to improve revenue while lowering overall cost. The company is progressing well on improving ancillary revenues by adding new features to its services as well as expanding new products, clarion hotel fort worth which are enhancing its value and profitability.
Despite these positive attributes, we remain clarion hotel fort worth on the sidelines clarion hotel fort worth due to new pricing rules, competitive threats from United Continental Holdings Inc. ( UAL ), Southwest Airlines ( LUV ) and JetBlue cruising guide quebec Airways Corp. ( JBLU ), its unionized workforce and heavy investments, which might weigh on the bottom line.
DELTA AIR LINES (DAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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