Delta Second Quarter Profit Edges Up

Delta Air Lines reported a slightly higher profit for the second quarter and said it would make fewer seats available to the United Kingdom and elsewhere than previously planned.

Delta said earnings rose 4 percent to USD$1.55 billion in the second quarter from a year earlier.

Total revenue for the quarter was up 2.4 percent at USD$10.46 billion.

Passenger load factor was down a fraction at 85.5 percent

Atlanta-based Delta also said it would increase capacity by one percentage point less than it had expected for the fourth quarter to match reduced demand.

Some of the biggest cuts will involve the United Kingdom. Delta said weaker sterling and economic uncertainty surrounding Britain's upcoming exit from the European Union caused it to reduce US-UK capacity by six percentage points for later this year.

The decision comes during heightened competition from transatlantic rivals. Delta has said flights added by the likes of Norwegian Air Shuttle exceeded demand and threatened to drive down fares to Europe.

US airline unions have lobbied to block two of Norwegian's subsidiaries from starting US service.

In addition, "the large year-on-year savings driven by lower fuel are largely behind us," chief executive Ed Bastian said in a news release.

US airfares close to departure dates have fallen. That, along with sales in foreign currencies weakening against the US dollar, has contributed to a decline in passenger unit revenue for more than a year.

For Delta, passenger unit revenue fell 4.9 percent in the quarter. It expects a drop of 4 percent to 6 percent for the third quarter.

President Glen Hauenstein said Delta maintained its goal of positive unit revenue by year-end.

The company said it expected an operating profit margin of 19 percent to 21 percent for the third quarter.