Delta losses widen despite higher ticket prices

Delta Air Lines Inc., the nation’s third-largest carrier, reported Wednesday a wider second-quarter loss of $2.21 billion even as higher ticket prices and fuller planes drove up revenue.

But excluding huge reorganization items, the airline said it turned its first adjusted profit in nearly six years.

For the three months ended June 30, Atlanta-based Delta said its net loss amounted to $11.18 a share, compared with a loss of $388 million, or $2.64 a share, in the same three-month period a year ago. The prior-year loss included $6 million in dividends that accrued for preferred shareholders.

Excluding reorganization items, the airline said it earned $175 million in the second quarter after accounting for a $4 million tax charge. Delta last reported an adjusted profit in the fourth quarter of 2000, when it had income of $79 million before special items.

Revenue in the second quarter of this year rose 9.6 percent to $4.66 billion from $4.25 billion recorded the same period a year ago.

In a telephone interview, Chief Financial Officer Ed Bastian described the net loss for the second quarter as “pure bookkeeping,” and he said he is mostly encouraged by what he sees in Delta’s progress.

“Viacom Inc., the media conglomerate that owns MTV, VH1 and the Paramount movie studio, reported a big jump in earnings Wednesday on better results in cable and a tax gain, beating Wall Street estimates.

Viacom earned $437.3 million or 61 cents per share, in the three months ending June 30, up from $353.9 million or 47 cents per share, in the same period a year ago.

Earnings from continuing operations were 58 cents per share, which included 10 cents from a tax benefit. Excluding that item, the 48 cents per share result was ahead of the estimate of 44 cents per share from analysts surveyed by Thomson Financial.

“Profits rose at The Walt Disney Co. in the third quarter as the media conglomerate delivered growth from every division, including movies, theme parks, cable TV networks and consumer products.

The results released Wednesday easily beat analysts’ estimates and came after a yearlong effort to focus the company’s money and talent on its core brands and sell its content on new technology platforms.

Under the leadership of Chief Executive Robert Iger, who succeeded longtime CEO Michael Eisner, Disney also shed various businesses, including radio stations and its investment in US Weekly magazine, and trimmed staff at its movie studio.