Delta and US Airways Exceed Expectations in Second Quarter Financial Reports Jul 24th 2013, 11:22
Both Delta Air Lines and US Airways have reported second-quarter profits today that exceeded analysts’ estimates. These higher than expected profits follow the second quarter report of AMR Corporation, the parent company of American Airlines, Inc., which posted a second quarter GAAP net profit of $220 million, also exceeding analysts expectations.
Delta’s profit, excluding some items, increased to $844 million, or 98 cents a share. US Airways posted a profit of $324 million, or $1.58 a share.
Richard Anderson, Delta’s chief executive officer cited the second quarter performance as “among the best in Delta’s history.” He cited expansion at JFK’s Terminal 4 and the pending joint venture with Virgin Atlantic as evidence that the airline is “relentless in our efforts to build a better airline for our employees, customers, and shareholders."
US Airways chairman and CEO Doug Parker said that the flush second quarter result "provides excellent momentum as we transition into the new American Airlines. The teams are working very well together and we continue to expect to close the merger in the third quarter."
Industry experts point to lowered fuel costs and a steady demand for travel as key factors in the healthy second quarter results of all three carriers. With the crisis in Egypt continuing, however, and uncertainty hanging over the Suez Canal region, a key fuel highway, those lowered fuel costs may not continue as a strong factor in the third quarter results.
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