Airlines Have Mixed Results
The Associated Press
Jul. 19, 1999
Delta Air Lines reported its earnings rose 1 percent during the latest quarter, while Continental Airlines said its earnings dropped 16 percent as expenses rose.
Here is a look at the companies' results:
Delta Air Lines Inc.
Delta reported its earnings from its fourth fiscal quarter rose to $364 million, or $2.40 per share, from $362 million, or $2.26 per share, in the same period last year.
The nation's third-largest airline beat the $2.31 per-share consensus expectation of analysts surveyed by First Call Corp.
Operating revenue during the quarter, which ended June 30, rose 5 percent to $3.96 billion from $3.76 billion.
Atlanta-based Delta reported it flew 27 million passengers during the quarter, down less than 0.5 percent from a year earlier.
For the fiscal year, Delta reported record net income of $1.1 billion, or $7.20 per share, up 10 percent from $1 billion, or $6.34, per share in the previous year.
Annual revenues were $14.7 billion, up 4 percent from nearly $14.14 billion.
Continental said a 19 percent increase in operating expenses sent its earnings down to $137 million, or $1.80 a share, from $163 million, or $2.06 a share, in the same period a year earlier.
However, results for the nation's fifth-largest airline surpassed predictions of analysts surveyed by First Call Corp., who expected earnings of $1.73 per share.
Revenues were $2.2 billion, up 7 percent from $2 billion.
Wages and salaries accounted for nearly one-third of the airline's operating expenses, which grew from $521 million a year ago to $622 million in the most recent quarter. The Houston-based airline also blamed harsh weather, aircraft rental charges and landing fees for its higher costs.
Separately, Continental announced an agreement with Priceline.com Inc. to sell the airline's tickets online. Priceline allows customers to set a price they are willing to pay for airline tickets. If the price is met, the customer is obligated to purchase the tickets.
Delta Air Lines, Trans World Airlines, Northwest Airlines and America West also have partnerships with Priceline.
For the first six months of the year, Continental reported earnings of $221 million, or $2.91 per share, down from $244 million, or $3.12 per share, in the first half of 1998.
Revenue rose to $4.25 billion from $3.89 billion.