Delta’s GAAP fully diluted EPS totaled $1.23, which included a mark-to-market gain of $440 million on fuel hedges. In the third quarter of 2011, Delta took a $216 million charge for special items, with GAAP EPS coming in at $0.63.
Excluding the effects of fuel costs, profit sharing and other items, Delta’s consolidated unit costs rose 5.6% year-over-year for the third quarter.
Delta’s CFO said:
With consistent investment in the business, our non-fuel costs have grown in the past few quarters and we expect that trend to continue into the first half of next year. However, we are in the process of implementing a $1 billion program of structural initiatives that we anticipate will generate significant savings in the second half of 2013, while maintaining the high quality product, network and operation we have built.
The company expects its wholly-owned crude oil refinery in Pennsylvania to generate a contribution of breakeven to $25 million in the fourth quarter. The refinery started up in the third quarter and is expected to be fully operational this quarter.
Delta offered fourth-quarter guidance on several items. The company expects fuel costs of $3.15 to $3.20 per gallon, up from $3.14 in the third quarter. The operating margin is forecast in the range of 4% to 6%, a sharp drop from the 13.2% mark posted this quarter.
Delta’s shares are inactive in premarket trading this morning, having closed at $10.15 last night, in a 52-week range of $7.08 to $12.25. The consensus target price for the shares was around $15.30 before today’s report.
Paul Ausick
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.