Higher Fuel Cost Weighs On Delta Profit In 1st Quarter | WABE 90.1 FM

Higher Fuel Cost Weighs On Delta Profit In 1st Quarter

Apr 12, 2017

Rising fuel costs hurt Delta's first-quarter profit, which dropped 36 percent from the same period a year before.

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But the Atlanta-based company's adjusted earnings beat expectations and its stock rose about 2 percent in morning trading Wednesday.

 

Delta also said Wednesday that last week's cancellation of about 4,000 flights because of severe weather in Atlanta will cost it $125 million in pre-tax income in the current quarter.

 

The company reported net income of $603 million, or 82 cents per share, for the three months ending March 31. That's down from $946 million, or $1.21 per share, in the same quarter a year ago.

 

Adjusted earnings were 77 cents per share, surpassing Wall Street expectations of 73 cents per share, according to Zacks Investment Research.

 

Revenue fell 1 percent to $9.15 billion in the period, missing Street forecasts. Analysts surveyed by Zacks expected $9.16 billion.

 

Shares of Delta Air Lines Inc. rose 84 cents, or 1.9 percent, to $46.13 in morning trading Wednesday.