Delta Air Lines said Wednesday that it had a record $1.3 billion profit in its third quarter with the help of lower fuel costs.
Delta had a $357 million profit in the year-earlier quarter.
But the Atlanta air carrier also said revenue from most of its operations dropped in the quarter ended Sept. 30 due to the higher dollar and other challenges.
Delta said earlier this month that it plans to cut jobs among its 10,000 management and salaried workers in the next few months to boost productivity. The company, which employs 80,000, hasn’t said how many jobs it plans to eliminate.
“We continue to benefit from the decline in fuel prices, which provided a $1 billion-plus tailwind this quarter and, at current prices, will drive a $750 million benefit in the December quarter,” said Paul Jacobson, Delta’s chief financial officer.
“With volatile fuel prices and revenues under pressure,” said Jacobson, “we are using the current environment to evaluate and prune costs across all parts of the business, including our overhead functions, making sure we’re investing in the right parts of the airline and at levels we can sustain over time.”
Delta’s overall revenue was $11.1 billion during the quarter, down about 1 percent from a year earlier. But the revenue Delta got from flying each passenger a fixed distance declined almost 5 percent compared to a year ago, partly because the higher dollar made the carrier’s fares more costly for overseas customers.
About the Author
