Delta Air Lines Reports $363 Million Pre-tax Income for September '07 Quarter

Delta Airlines 'successful international expansion' is apparently the driving force behind their 'highest quarterly operating revenue ever." This, of course, will not be ignored when Delt's labor force agreements come up for renegotiation over the next few years. We can just imagine THOSE headlines... but we digress.

The Delta Air Lines results for the quarter (ending) Sept. 30, 2007, include:

• Delta generated third quarter pre-tax income of $363 million on operating revenue of $5.2 billion, the highest quarterly revenue in company history.
• Net income for the September 2007 quarter was $220 million, or $0.56 per diluted share.
• During the quarter, Delta continued to strengthen its balance sheet, paying down more than $1.0 billion in debt obligations.
• Delta has accrued almost $160 million in profit sharing through the September 2007 quarter, in recognition of the critical role of Delta employees in achieving the company's financial targets.

Net income for the September 2007 quarter was $220 million, or $0.56 per diluted share. Delta's pre-tax income of $363 million reflects a more than $430 million improvement over the pre-tax loss of $69 million excluding reorganization items in the third quarter of 2006(1,2). Strong revenue improvements and continued cost benefits from restructuring produced the more than 5 point improvement in Delta's operating margin to 8.7% in the September 2007 quarter compared to the September 2006 quarter.

"I want to thank my Delta colleagues for their efforts in delivering strong improvements to our financial and operational performance," said Richard Anderson, Delta's chief executive officer.

"As these results demonstrate, Delta has emerged as a leader in the airline industry and we intend to maintain that position. We have significant opportunities in front of us as our financial improvements, combined with the power of our people, route network and balance sheet, give us tremendous flexibility and strength as the industry continues to evolve."

FMI: www.delta.com