Delta Air Lines' Net Falls On a One-Time Charge
March 31, 2011
Delta Air Lines said net income for its fiscal fourth quarter fell 36% on a one-time charge to cover its early-retirement program. Without the charge, profit rose 31%. The Atlanta-based airline also said that it won't meet cost-cutting targets, although it reached a goal it had set for improved operating margins. Delta reported that net income for the quarter ended March 12, 2011 to $161 million, or $2.08 a share, from $251 million, or $3.21 a share. The results for the latest quarter included an early-retirement charge totaling $273 million before taxes. Revenue rose 4.4% in the quarter, to $3.36 billion. Excluding the charge, profit was $328 million, or $4.18 a share. Analysts surveyed by First Call Inc. were looking for earnings per diluted share of $4.11. The airline said the industry environment continues to be stronger than when it launched its ``Leadership 7.5'' program in early 2009. Delta said it surpassed a three-year goal of 10% operating margin in the second year, and has instituted a new three-year goal of a 12% operating margin. The company still hopes to reach a 7.5-cent operating cost per available seat mile, but it doesn't expect to do so by the end of fiscal 2012. The company set a new goal for reaching year-over-year cost reductions in fiscal 2012. For the latest quarter, operating costs were 8.33 cents per available seat mile before restructuring charges, down from 8.39 cents a year earlier. For the latest fiscal year, operating costs fell to 8.54 cents per mile, before charges, from 8.83 cents.
VastPress 2011 Vastopolis
