P.M. BRIEFING : EARNINGS : Delta Says Fuel Will Cut Profit
Delta Air Lines said today that its earnings for the first quarter of its fiscal year will be down sharply because of increased fuel prices that followed the Iraqi invasion of Kuwait.
Thomas J. Roeck Jr., Delta’s senior vice president of finance, said earnings for the quarter that will end Sunday would be “significantly worse” than those for the same quarter last year, when the airline posted record profits.
Roeck said the airline is now paying 64% more for jet fuel than it was before the Aug. 2 invasion. Delta has twice raised domestic air fares to help offset the fuel price increases.
In the quarter ending last Sept. 30, net earnings were $133.1 million, or $2.38 per share, on revenue of $2.17 billion.
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