Transport Airlines

Delta’s Refinery Helped the Airline Trim Fuel Costs in the Second Quarter

Jul 24, 2013 6:57 am

Skift Take

Are there any more refineries for sale? Given Delta’s seeming success in refinery ownership, there may be a few airlines looking to buy one.

— Dennis Schaal

Win an All-Expenses Paid Trip to NYC to Tour the Future of Travel

Delta Air Lines reported a quarterly profit on Wednesday against a year-earlier loss as fuel costs fell and it held down other expenses.

Net income was $685 million, or 80 cents a share in the second quarter, compared with a loss of $168 million, or 20 cents a share, a year earlier.

There were charges of $159 million in the quarter tied to fuel-hedge contracts and Delta’s aircraft restructuring.

Quarterly revenue fell $25 million to $9.71 billion. While passenger revenue rose about 1 percent, cargo revenue was down 11 percent.

Operating costs dropped 8 percent, with fuel expenses down 21 percent in the quarter. Delta said its purchase of a Pennsylvania refinery last year was helping it save on fuel costs.

Tags:

Next Up

More on Skift

5 Tourism Trends We’re Tracking At Skift This Week
How Destinations Turn Locals Into Their Best Brand Ambassadors
Travel Startup Smart Host Aims to Bring Flexible Pricing to Vacation Rentals
Free WiFi Tops Business Travelers’ List of Hotel Must-Haves