The Global recession has been treacherous for many industries, but in the midst of the turmoil the American airline industry is showing remarkable resilience. Delta Airlines announced Tuesday that it expects to report a full-year profit despite forecasting a 14% drop in operating revenue for the first quarter.
Ed Bastian, Delta's president, said the airline expects to break even on a pretax level for the first quarter and move into profit in the second quarter. He said the company could still remain in the black even if operating revenue were to fall by as much as 18%.
Delta also affirmed that it will keep its order for 18 Boeing 787s, an order originally placed by merger partner Northwest Airlines.
Delta expects the negative impact of fuel hedges to unwind by the end of the second quarter, eliminating the losses that blighted earnings at many carriers over the past two quarters.