Delta Air Lines the world's biggest airline operator Posts $794 M Loss.
source: http://news.yahoo.com/s/ap/20090421/ap_on_bi_ge/us_earns_delta
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Delta Air Lines Inc., the world's biggest airline operator, said Tuesday it will institute a $50 fee for most passengers to check a second bag on an international flight — a first among major U.S. carriers — as it reported a $794 million first-quarter loss due to the weak economy and bad bets on fuel hedges.
Company shares soared more than 16 percent as the results beat Wall Street expectations. Also, Delta executives said they've seen some signs of revenue stabilization and the airline still expects to be profitable for the year.
"In short, things aren't good, but they are not getting worse," Delta President Ed Bastian said on a conference call with analysts and reporters.
AMR Corp.'s American Airlines and UAL Corp.'s United Airlines, which both posted hefty first-quarter losses, said they were studying Delta's new bag fee, but did not immediately announce plans to match it. US Airways Group Inc., which reports its results Thursday, also is looking at Delta's decision, while Continental Airlines Inc., which reports results on Wednesday, declined to comment. Among foreign carriers, British Airways has a fee for a second checked bag for some passengers for travel to some international destinations.
Bastian said the continued "unbundling of our pricing" is the right thing for the airline to do.
Atlanta-based Delta said its fee was effective Tuesday for travel beginning July 1. The company expects to generate more than $100 million annually from the new fee. Delta already charges fees for the first and second checked bags on domestic flights.
Company shares soared more than 16 percent as the results beat Wall Street expectations. Also, Delta executives said they've seen some signs of revenue stabilization and the airline still expects to be profitable for the year.
"In short, things aren't good, but they are not getting worse," Delta President Ed Bastian said on a conference call with analysts and reporters.
AMR Corp.'s American Airlines and UAL Corp.'s United Airlines, which both posted hefty first-quarter losses, said they were studying Delta's new bag fee, but did not immediately announce plans to match it. US Airways Group Inc., which reports its results Thursday, also is looking at Delta's decision, while Continental Airlines Inc., which reports results on Wednesday, declined to comment. Among foreign carriers, British Airways has a fee for a second checked bag for some passengers for travel to some international destinations.
Bastian said the continued "unbundling of our pricing" is the right thing for the airline to do.
Atlanta-based Delta said its fee was effective Tuesday for travel beginning July 1. The company expects to generate more than $100 million annually from the new fee. Delta already charges fees for the first and second checked bags on domestic flights.
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It also said that it will ground 40 to 50 mainline aircraft, including its entire fleet of 14 B747-200 freighters in its cargo unit. Other aircraft to be taken out of its mainline system include some Boeing 757s and MD88s, executives said. In addition, Delta will remove 30 regional jets from service.
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