Delta Air Lines said it expects to make a profit in the second quarter, even amid continuing high fuel prices that have prompted flight and workforce cuts.
The Atlanta-based airline said in a regulatory filing Monday it expects a “solidly profitable” April-June quarter, adding that higher revenue has “largely offset” a more than $1 billion increase in fuel expense year over year.
Airlines have raised fares to cover high oil costs, and Delta said unit revenue -- the amount from each passenger -- is up 10 percent for the second quarter compared to the prior-year period. Delta expects its operating margin to be 6.5 percent to 7 percent for the quarter.
The airline previously announced it is cutting flight capacity by 4 percent after Labor Day. Delta is also offering buyouts and early retirements to employees this month in an effort to cut its work force.
The forecasts for the quarter exclude special items, such as charges for the workforce cuts. Delta posted a $318 million net loss in the first three months of the year.
The airline’s revenues in the Pacific region are taking a $125 million hit in the June quarter as a result of the earthquake and tsunami in Japan in March.
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