Delta makes June quarter profit despite high fuel costs

Delta makes June quarter profit despite high fuel costs

Delta Air Lines has announced a $198 million profit for the June 2001 quarter in the face of a $1 billion increased fuel bill over the past year.

Announcing its June quarter results, the airline said it had a 12% year on year revenue growth, with a net income of $198 million for the quarter, which takes into account costs such as money paid out for voluntary redundancies.

"High fuel prices are putting significant pressure on the industry, but the benefits of Delta’s strategic actions and the dedication of Delta employees are evident in the solid profit we produced despite more than $1 billion in higher fuel expense," said Richard Anderson, Delta's chief executive officer.  It said its fuel was 39% more expensive for the June quarter compared to the same time last year which has led to the increase in operating costs.

It is using a number of measures to account for long term highly priced fuel. These include increasing ticket prices, reducing its December capacity in low-revenue by up to 5% on the previous year.

Transatlantic capacity will be down up to 9%, a reduction taken in conjunction with its partners including Air France.

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