Higher Fares Bolster Delta’s Earnings by 51%

The company reported that its earnings rose 51 percent, despite higher fuel costs, in large part because of higher fares. Richard H. Anderson, the chief executive, said Delta was determined to price fares high enough to cover fuel costs, which rose by $1 billion in the third quarter compared with a year ago.

All the big airlines except Southwest raised fares by up to $5 each way on Monday, for the second time in a week. With Southwest sitting out the increase, it may not stick. But the effort shows how aggressively airlines are jumping at any opportunity to raise fares.

Delta executives said they expected high fuel prices and an uncertain economy to continue into next year.

In the past, airlines struggled to make money in a weak economy or when fuel prices rose. Now, they appear committed to raising prices or cutting back on flying to stay profitable.

Delta cut flights by 1 percent in the most recent quarter, and it plans to cut as much as 5 percent through the rest of the year and as much as 3 percent next year. Traffic fell slightly, although Delta said business travel, which generates more profit, remained strong.

The result was net income of $549 million, or 65 cents a share, up from $363 million, or 43 cents a share, compared with a year earlier. Revenue rose 10 percent, to $9.8 billion. If not for losses from fuel hedging and other items, Delta would have earned 91 cents a share. That was 3 cents less than expected by analysts surveyed by FactSet.

Delta said it expected to be profitable in the fourth quarter as well. Its shares fell 46 cents on Tuesday, or 5.2 percent, to $8.44. They are down 33 percent for the year.

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