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ZitatDelta on Tuesday posted a first quarter net loss of $318 million, a 24 percent decline from the $256 million net loss reported for the year-ago period.
"Fuel is the biggest challenge facing this industry and Delta is actively reducing capacity, implementing fare actions, hedging our fuel needs and attacking our cost structure in order to offset fuel's impact on our earnings," said Richard Anderson, Delta's chief executive officer.
The carrier reported that operating revenues rose 13 percent to $7.7 billion from $6.8 billion a year ago, and operating expenses rose 16 percent to $7.8 billion from $6.9 billion for the same period in 2010. The company's operating loss totaled $92 million compared with an operating profit of $68 million a year ago, a decline of $160 million.
The carrier said it adjusted its business plan during the quarter to address rising fuel prices. Measures implemented include domestic fare increases and an international fuel surcharge, a 3 percent reduction in capacity for the second half of 2011; retirement of 130 of its least efficient aircraft over the next 18 months, including the DC9-50 and Saab turbo-prop fleets, and 60 50-seat regional jets; a repositioned fuel hedge portfolio; and a $300 million reduction in capital expenditures to $1.2 billion for 2011.