Delta Air Lines executives said they expect to report a record $2.6 billion pre-tax profit for 2013, benefiting from relatively low fuel costs and strong revenue.
Airlines have historically seen their finances turn at the whim of fuel costs, but Atlanta-based Delta said it aims to cover any increases in fuel costs through fares or through cuts in flying.
Yet Delta has also had some challenges this year — including losing about $100 million from operations of its Pennsylvania oil refinery acquired last year. The company expects the refinery is expected to be profitable next year.
Meanwhile, Delta chief executive Richard Anderson said Delta has been doing well in competition with Southwest Airlines, which began flying to Atlanta last year.
Southwest has cut flights from more than 200 daily flights under AirTran to about 150 today, Anderson said. “We compete quite well in competition against Southwest,” Anderson said. “We’re the business traveler’s airline.”
