Tuesday, April 26, 2011
Delta Air Lines Inc. says raising fares should allow it to make up for the higher fuel prices that drove a $318 million loss in the first quarter.
Airlines have been raising fares all year as fuel prices rose. Delta spent $483 million more on fuel than a year earlier -- a 29 percent increase. Revenue rose 13 percent to $7.75 billion.
Delta will reduce flying as the year goes on. Delta President Ed Bastian says that plus what he calls "aggressive fare actions" should allow it to cover the higher cost of fuel.
The loss worked out to 38 cents per share. A year ago, Delta lost $256 million, or 31 cents per share.
Last week United Continental and American reported quarterly losses on fuel expenses as well.
(Copyright 2011 The Associated Press. All rights reserved.)
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