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Airlines fly by estimates
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October 18, 1999: 9:16 a.m. ET
Despite Hurricane Floyd, Delta, Continental exceed expectations
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NEW YORK (CNNfn) - Despite losses caused by Hurricane Floyd, two of the nation's largest airlines -- Delta Air Lines and Continental Airlines -- flew by Wall Street's September earnings expectations Monday.
Atlanta-based Delta Air Lines (DAL) reported first- quarter earnings of $290 million, or $1.96 per diluted share. Analysts polled by First Call had expected the airline to post earnings of $1.91 per share.
Including gains from the sale of investments and non-recurring charges, net income was $352 million and diluted earnings per share were $2.38. That compares with net earnings of $327 million, or $2.08 per share, in the year-earlier period.
Revenue rose 2 percent to $3.88 billion.
Separately, Delta announced it had signed a definitive agreement to buy Comair Holdings Inc. (COMR) -- the parent company of Comair, a Delta Connection carrier -- for about $1.8 billion, or $23.50 a common share. That's a 31 percent premium from Friday's closing price of $17.9375.
Houston-based Continental Airlines (CAL), the sixth-largest major reported its 18th consecutive profitable quarter, posting third-quarter income of $110 million or $1.53 diluted earnings per share.
Analysts polled by First Call had expected the airline to post earnings of $1.47 per share.
Continental reported net income of $73 million, or 97 cents per share, in the year-earlier period.
Revenue rose 8 percent to $2.28 billion.
Separately, Continental said it sold its interest in Amadeus Global Travel Distribution S.A. for $408 million, including a special dividend. The airline said the sale will result in a $181 million after-tax gain for the fourth quarter.
Both Delta and Continental said Hurricane Floyd had an impact on revenue. Delta said last month's storm caused over 1,100 flight cancellations and reduced revenue by about $20 million. Continental said Floyd caused the cancellation of over 700 flights.
Shares of Delta closed down 1-7/8 Friday at 50-1/8. Continental closed down 1 at 36-1/16.
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