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Delta disappoints after hefty charges

Delta Air Lines Inc., despite a 13 percent rise in revenue, reported a second quarter loss of nearly $2 billion because of hefty charges.
/ Source: The Associated Press

Delta Air Lines Inc., despite a 13 percent rise in revenue, reported a second quarter loss of nearly $2 billion because of hefty charges.

The results, announced Monday, were worse than Wall Street's reduced expectations.

The nation's third-largest airline said its net loss for the three months ending June 30 was $1.97 billion, or $15.79 a share, compared to a profit of $180 million, or $1.40 a share, in the same three-month period a year ago.

The loss includes $1.65 billion in previously announced non-cash charges and $4 million in dividends paid out to preferred shareholders.

Excluding the charges, Delta said it lost was $312 million, or $2.55 a share, in the April-June quarter. Analysts surveyed by Thomson First Call were expecting a loss of $2.46 a share.

Revenue in the second quarter rose 13.3 percent to $3.96 billion, compared to $3.50 billion a year ago.

"As expected, today's results further confirm the urgent need for Delta to transform itself, once again," chief executive Gerald Grinstein said. "The challenges we face are significant and all of our stakeholders must participate in the solution if we are to be successful."

For the first six months of the year, Atlanta-based Delta said it lost $2.36 billion, or $18.95 a share, compared to a loss of $290 million, or $2.35 a share, in the year-ago period. The current loss includes $9 million paid out in dividends to preferred shareholders.

Six-month revenue was $7.49 billion, a 9.8 percent increase from the $6.82 billion recorded a year ago.