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Delta Air Lines profit slumps on higher expenses
[London] Delta Air Lines Inc's quarterly profit slumped 74 per cent as higher operating expenses did not allow the US airline to take advantage of strong business and leisure travel.
Total operating expenses jumped 16 percent to US$10.34 billion in the third quarter ended Sept 30.
Delta's shares were down 2 per cent at US$31.75 before the bell.
The Atlanta-based airline also booked a US$134 million loss on extinguishment of debt and set aside US$222 million as income tax provision.
Operating revenue increased 6.6 per cent to US$11.18 billion and traffic increased 3.7 per cent.
Net income dropped to US$357 million, or 42 cents per share, from US$1.37 billion, or US$1.59 per share, a year earlier.
Excluding certain one-time items, Delta earned US$1.20 per share. REUTERS