|
Delta soars, Northwest skids
|
 |
January 19, 1999: 9:53 a.m. ET
Delta reports record net for 2Q while NWA posts loss, cites strike effects
|
NEW YORK (CNNfn) - Two big airlines flew in different directions Tuesday as Delta Air Lines Inc.'s earnings beat Wall Street estimates while Northwest Airlines landed in the red.
Atlanta-based Delta Air Lines Inc. reported diluted income per common share of $1.29 for its fiscal second quarter, an 8 percent increase over a year ago.
The earnings came in over the projected $1.25 per share estimates from First Call.
Delta reported operating income of $320 million and record net income of $194 million on revenue of $3.4 billion, also a record.
Separately, Delta said it finalized a strategic relationship with priceline.com Inc., providing the company with an additional low-cost distribution channel. Delta also announced a five-year agreement with iXL Inc., an Atlanta-based Internet services firm, to design and build Web-related products and services.
Northwest Airlines Corp. (NWAC) reported a net loss of $181 million for the fourth quarter, ended Dec. 31. Results were affected by the recovery period following a 15-day strike in the third quarter, the company said. Northwest estimates the fourth-quarter loss due to the recovery was about $300 million before taxes.
Fourth-quarter results included a $66 million one-time pre-tax charge related to the retirement of seven Boeing 747s and pre-tax provisions of $36 million for estimated retroactive payments related to labor agreements.
Exclusive of these one-time charges, the fourth quarter loss was $117 million, or $1.49 per diluted common share. Including the one-time charges, the loss totaled $2.31 a share.
For the year, Northwest reported a net less of $286 million. Excluding the effects of the charges, the net loss was $149 million, or $1.81 per diluted common share. Including the one-time charges, the loss per diluted common share for the year was $3.48.
Northwest shares were up 2 Friday at 26-1/2.
|
|
|
|
|
 |
|
