June 26, 2012 / 2:03 PM / in 6 years

Delta sees Q2 unit revenue rise, fuel hedge loss

A Delta plane sits on a runway prior to takeoff at John F Kennedy International Airport in New York December 25, 2009. REUTERS/Lucas Jackson

(Reuters) - Delta Air Lines Inc (DAL.N) said a key revenue measure should rise in the second quarter, but it will record fuel hedge losses due to declining oil prices as well as staff cut charges.

The carrier said in a federal filing on Tuesday that passenger revenue per available seat mile, a widely watched metric called unit revenue, would be aided by business travel and its flight expansion in the New York market.

Delta said it expects an operating margin of 8 percent to 10 percent for the period, compared with 6.9 percent a year earlier. But including adjustments tied to hedges and $170 million in charges for voluntary retirement and severance programs, it expects an operating margin of be about negative 1 percent.

The company said the rapid fall in fuel prices changed the value of its open fuel hedges, which run through June 2013. It said it expects a $155 million loss for fuel hedges that settle in the second quarter.

U.S. oil prices have fallen to around $79 a barrel since peaking at $110 in March.

Reporting by Karen Jacobs; Editing by Gerald E. McCormick

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below