Delta Air Lines beats by $0.04, reports revs in-line
Reports Q1 (Mar) earnings of $0.33 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.29; revenues rose 4.9% year/year to $8.92 bln vs the $8.93 bln consensus.
- Delta's operating revenue improved 5 percent, or $416 million, in the March 2014 quarter compared to the March 2013 quarter, despite $90 million of lost revenue due to weather-related cancellations.
- Traffic increased 3.5 percent on a 1.7 percent increase in capacity.
- Passenger revenue increased 5 percent, or $357 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 3.2 percent year over year with a 1.3 percent improvement in yield.
- "Our work is not finished, and there is great opportunity ahead as we expect the June quarter to produce 14% - 16% operating margins. We are transforming Delta into a high-quality S&P 500 company that consistently delivers strong earnings growth and shareholder returns."
- Co slso guides for Q2 adj. unit costs +0-2%; capacity +2-3%.