Delta Shares Drop on Profit, Revenue Misses

by Christopher Freeburn | October 24, 2012 1:29 pm

Delta Air Lines (NYSE:DAL[1]) announced on Wednesday that it earned $1.05 billion during the third quarter[2], compared to $549 million in the same period last year. Adjusted EPS came in at 90 cents, narrowly missing the 91 cents that analysts had predicted, the Associated Press noted.

The carrier recorded quarterly revenue of $9.92 billion, up 1% from last year, but falling just short of the $9.92 billion that Wall Street had anticipated.

Investors were not happy with the results. Shares of Delta Air Lines slipped almost 3% in Wednesday afternoon trading.

The company noted that operating costs declined 4% compared to last year, as fuel expenses plunged 23%.

Company officials said that the airline expected revenue-per-passenger to rise between 4% and 5% during October, compared to an increase of just 0.5% last month.

Last week, Southwest Airlines (NYSE:LUV[3]) posted third-quarter earnings that narrowly beat Wall Street estimates[4] on revenue that was flat compared to last year.

Endnotes:
  1. DAL: http://studio-5.financialcontent.com/investplace/quote?Symbol=DAL
  2. during the third quarter: http://www.washingtonpost.com/business/delta-air-lines-3rd-qtr-profit-jumps-on-gains-in-value-of-fuel-price-contracts/2012/10/24/3ce43c2e-1dd2-11e2-8817-41b9a7aaabc7_story.html
  3. LUV: http://studio-5.financialcontent.com/investplace/quote?Symbol=LUV
  4. that narrowly beat Wall Street estimates: http://investorplace.com/2012/10/southwest-airlines-swings-to-q3-profit/

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