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The No. 2 U.S. carrier forecast total unit revenue, a
measurement closely watched by investors, to increase by 2.5
percent to 4.5 percent in the first quarter of 2018.
"We enter 2018 with significant momentum and every entity
delivering positive passenger unit revenue for the first time in
five years, driven by a robust demand environment and improving
business fares," said Delta's President Glen Hauenstein.
Based on that, Atlanta-based Delta raised its full-year profit
outlook to between $6.35 and $6.70 per share, well ahead of Wall
Street estimates.
The bullish outlook from the airline, the first major U.S.
carrier to report fourth-quarter earnings, comes a day after
United Airlines <UAL.N> and American Airlines <AAL.O> also
raised their forecasts for unit revenue.
Delta's net income for the fourth quarter dipped to $572
million, or 80 cents per share, in the quarter ended Dec. 31,
from $622 million, or 84 cents per share, a year earlier.
That included a one-time charge of $150 million due to changes
in the U.S. tax code enacted in December. Delta said the new tax
law would cut its tax rate to between 22 percent and 24 percent
in 2018.
Excluding that and other one-time items, Delta earned 96 cents
per share, above the average 88 cents per share expected by
analysts, according to Thomson Reuters I/B/E/S.
Total operating revenue rose 8.3 percent to $10.25 billion from
$9.46 billion. Analysts on average had expected revenue of
$10.13 billion.
Delta took a combined hit of $60 million from December's power
outage at Atlanta's Hartsfield-Jackson Airport and Winter Storm
Benji.
(Reporting by Alana Wise in New York and Ankit Ajmera in
Bengaluru; Editing by Bill Rigby and Arun Koyyur)
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