Delta Swings To Q2 Loss On Fuel Hedging

Delta Swings To Q2 Loss On Fuel Hedging

Delta Air Lines reported a net loss on Wednesday as charges for staff buyouts and fuel contracts overwhelmed an increase in passenger revenue.

For the second quarter, Delta recorded a net loss of USD$168 million, compared with a year-earlier profit of USD$198 million.

Special items came to USD$754 million in the quarter, including a USD$561 million charge tied to fuel hedges and USD$171 million in severance costs for voluntary buyouts.

Operating revenue rose 6 percent to USD$9.73 billion. Passenger unit revenue increased 8.5 percent.

Delta said it expects to report a profit for the current third quarter.

Delta has cut routes to less profitable markets, retired less fuel-efficient planes and consolidated facilities to cut costs.

This summer, it completed the purchase of a Pennsylvania oil refinery and became the first airline to do so in a bid for more control over fuel costs.

(Reuters)