Severe winter weather cost Delta Airlines $90 million in lost revenue. That didn't stop the airline from delivering better than anticipated earnings results.
The airline reported $8.9 billion in operating revenue for the quarter, up 5% from the same period last year. Net income came in at $281 million, this was $196 million greater than net income during the same period last year despite $163 million in non-cash tax expenses and revenue lost from the more than 17,000 Delta canceled due to severe winter weather in the firs two months of the quarter. Net income was also well ahead of Wall Street analysts' $243 million consensus estimate. Earning per share were 25 cents, 2 cents behind the analyst estimate. Excluding special items, however, earnings per share were 33 cents, 4 cents ahead of the Street.
Passenger revenue per available seat mile was up 3% from the same period last year to 14.24 cents, as revenue passenger miles were up 4% to 44.6 billion. These industry metrics respectively measure capacity to revenue and number of paying-passengers by aircraft distance traveled.
"The March quarter's record results in the face of unprecedented weather show the strength and resilience of Delta,"said CEO Richard Anderson. "Our work is not finished, and there is great opportunity ahead as we expect the June quarter to produce 14% - 16% operating margins. We are transforming Delta into a high-quality S&P 500 company that consistently delivers strong earnings growth and shareholder returns." Delta rejoined the S&P 500 in September 2013.
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