Delta stronger than Sandy, net income $7 millionStaff writer ▼ | January 22, 2013
Delta's operating revenue grew $203 million, or 2 percent, in the December 2012 quarter compared to the Q4 2011, despite a $75 million revenue decline associated with Superstorm Sandy. Load factor increased to 83.3 percent, with traffic up 0.7 percent on a 1.3 percent decrease in capacity. Net income for the quarter was $238 million, or $0.28 per diluted share, excluding special items. Delta's GAAP net income was $7 million, or $0.01 per diluted share, for the Q4 2012 and $1.0 billion for 2012.
Passenger revenue increased 3.0 percent, or $215 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 4.3 percent, cargo revenue decreased 5.9 percent, and other revenue increased 0.3 percent.
Cash from operations during the December 2012 quarter was $585 million, as the company's profitability and working capital initiatives were partially offset by the normal seasonal decline in advance ticket sales. Capital expenditures during the Q4 2012 were $600 million, including $310 million in fleet investments and $70 million of capital investments for the Trainer Refinery.
"Our December quarter profit caps off a successful 2012 for Delta with strong financial results... We enter 2013 as a stronger airline, with initiatives in place to build on our 2012 success. In the year ahead, we will advance our position around the world and continue to build a better airline for our shareholders, customers and employees," said Richard Anderson, Delta's chief executive officer.
During the quarter, Delta's net debt and capital lease payments were $17 million. In October, the company refinanced $1.7 billion in debt and undrawn revolving credit facilities secured by the company's Pacific routes and slots, which resulted in a lower interest rate. ■