Delta improves cargo profitability
Delta Air Lines said first quarter cargo profitability improved despite its decision last year to retire its 10 dedicated freighter B-747-200F aircraft, which contributed to a 40 percent decline in capacity.
Delta President Ed Bastian said the company saw a $9 million decline in cargo revenue in the first quarter of 2010. But he said because shutting down freighter operations yielded $60 million in expense savings, the decision to discontinue freighter operations yielded $50 million of operating margin improvement.
Delta said Tuesday during a call with Wall Street analysts and the press that the stoppage of traffic in Europe because of the ash from the Iceland volcano, cost it about $5 million a day, even after accounting for the fuel it was not burned.
Delta improves cargo profitability
