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

Delta sees Q2 unit revenue rise, fuel hedge loss

(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.

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

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

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