Delta Air Lines has reported its biggest quarterly profit in ten years, chalking up $549 million during the period..
“Delta’s profit this quarter is our best result in a decade and proof AtAhat our plan has positioned us well as the economy begins its recovery.

“These results would not have been possible without the dedication and determination of Delta people.  We’re happy to recognize our employees’ contributions with $90 million in profit sharing,” said Delta’s Chief Executive Officer, Richard Anderson.

According to him, Delta’s operating revenue grew $1.2 billion, or 17% in the June 2010 quarter compared to the 2009 quarter.

Anderson said passenger revenue increased 19%, or $1.1 billion, compared to the previous year period on 1% lower capacity.

He said passenger unit revenue (PRASM) also increased 19.4%, driven by a 17% improvement in yield and a 1.9 point improvement in load factor, while cargo revenue increased 22%, or $38 million on higher cargo volume and yield.

Said Delta Air President, Ed Bastian:  “We are seeing strong improvements in these early stages of the economic recovery and believe there’s room for more revenue growth, as the economy continues to stabilize.  We anticipate double-digit year over year unit revenue gains for the September quarter.”

On cost performnace during the period under review, Bastian said Delta’s operating expense increased $317 million year over year due to higher fuel price and profit sharing expense, which were partially offset by incremental merger cost synergies.

He said consolidated unit cost (CASM2), excluding fuel expense, profit sharing and special items, was flat in the June 2010 quarter on a year-over-year basis, despite 1% lower capacity.  Consolidated CASM increased 5% due to higher fuel price and profit sharing expense.

On fuel hedging, he said  Delta hedged 51% of its fuel consumption for the June 2010 quarter, for an average fuel price3 of $2.32 per gallon.