Delta Air Lines Profit Jumps, Despite Weather Troubles

Delta Air Lines Inc. (DAL) said first-quarter earnings surged, with higher revenue and passenger demand.

The big U.S. airline's financial improvement came despite the fact it cancelled more than 17,000 flights due to severe weather in January and February, double the number of flights cancelled for weather in 2013. Those cancellations resulted in $90 million of lost revenue and $55 million lower pre-tax income, the company said.

Delta reported profit of $213 million, or 25 cents a share, up from $7 million, or a penny a share, a year earlier. Excluding mark-to-market adjustments and other items, earnings were 33 cents a share, up from 10 cents. Revenue rose 4.9% to $8.92 billion.

Analysts polled by Thomson Reuters expected per-share profit of 29 cents and revenue of $8.92 billion.

Delta earlier this year predicted it would generate stronger revenue as it implements its joint venture with Virgin Atlantic Airways Ltd. and continues to restructure and diversify its Pacific network. Revenue has grown recently, helped by the sale of ancillary products such as better seats, priority boarding and other perks.

First-quarter passenger unit revenue, a key measure of performance for the airline industry, rose 3.2%. Traffic increased 4% and capacity rose 2%. The portion of seats filled, or load factor, rose to 82.7% from 81.2%.

Write to Ben Fox Rubin at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires