Delta Air Lines beats by $0.01, reports revs in-line
Reports Q2 (Jun) earnings of $1.04 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.03; revenues rose 9.4% year/year to $10.62 bln vs the $10.65 bln consensus.
- Passenger revenue increased 9 percent, or $772 mln, compared to the prior year period. Passenger unit revenue (PRASM) increased 5.7 percent year-over-year with a 3.8 percent improvement in yield. Seat-related products and other merchandising initiatives increased revenues by $45 mln versus the prior year period. Cargo revenue decreased 1 percent, or $2 mln, as lower freight yields were partially offset by higher volumes.
- Other revenue increased 15 percent, or $144 mln, driven by higher joint venture and SkyMiles revenues. Consolidated unit cost excluding fuel expense, profit sharing and special items, was flat in the June 2014 quarter on a year-over-year basis as the benefits of Delta's domestic refleeting and other cost initiatives offset the company's investments in its employees, products and operations. GAAP consolidated CASM decreased 0.4 percent.
- Co sees Q3 operating margin at 15-17%; sees system capacity +2-3%