Delta returns to profit in Q1

Delta returns to profit in Q1

Delta cut seat capacity by 3% in Q1 2012
Delta cut seat capacity by 3% in Q1 2012

Delta Air Lines posted a net profit of US$124 million for the first quarter of 2012.

The result marks a return to the black for the US carrier, which recorded a US$318 million loss in the corresponding period last year.

The result was driven by a 9% rise in revenue, which totalled US$8.41 billion. This outpaced a 2% rise in costs, largely due to Delta’s capacity management. The airline removed 3% of total seat capacity from service in Q1 2012, but still managed to increase passenger traffic by 1%.

“By staying disciplined with capacity, making the right investments in our products, and pricing for what customers value, Delta has again generated a revenue premium to the industry,” said Ed Bastian, Delta’s President.  “Customer demand remains solid with strong gains in corporate revenue and as a result, we expect our June quarter unit revenue improvement will continue to lead the industry.”

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