Airline

DELTA EARNINGS UNDER PRESSURE FROM HIGH FUEL COSTS

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DELTA EARNINGS UNDER PRESSURE FROM HIGH FUEL COSTS

Delta Air Lines reported earnings have fallen short of Wall Streetestimates owing to the sharp increase in fuel costs.

Net income at Delta was $198 million, or 23 cents a share, for the second quarter, compared with $467 million, or 55 cents a share, a year earlier. Excluding special items, Delta earned 43 cents a share, a penny short of analysts’ average forecast, according to Thomson Reuters.

Quarterly revenue rose 12%, to $9.15 billion. Operating expenses rose 19%, with aircraft fuel and related costs up 36%.

Delta’s average fuel price for the second quarter was $3.22 a gallon, up 90 cents from a year earlier. It expects an average fuel cost of $3.20 a gallon for the current quarter.