Delta Air Lines (NYSE:DAL) Will Drop 100 Aircraft Over Next 18 Months

Even though Delta Air Lines (NYSE:DAL) has their first profitable fourth quarter results in a decade, they continue to face many challenges, and in order to respond to increasing costs of doing business, especially in fuel and maintenance, they are going to offload 100 aircraft over the next 18 months.

Canaccord says, "Delta was looking for a place to land after announcing Q4 earnings that were below analyst expectations. The second-largest air carrier reported an adjusted profit of $0.19 per share (excluding merger related expenses), falling short of the average analyst estimate of $0.24. Revenue increased by 14% to $7.79 billion, but was offset by a 13% increase in fuel costs and a 39% increase in plane maintenance expenses. To counter rising oil costs, Delta will look to adjust capacity by dropping 100 aircraft over the next 18 months. The company is also seeking a new jet order, and is looking outside of longtime supplier Boeing (NYSE:BA) to manufacturers offering more efficient technology. After posting their first Q4 profit in 10 years, the company anticipates it will continue to be profitable through 2011; though few analysts share that view and continue to expect losses. Shares of other airlines also dropped on the news, including United Continental (NYSE:UAL), US Airways (NYSE:LCC) and AMR Corp. (NYSE:AMR). Delta was the first major airline to report its Q4 earnings."

Delta was trading at $11.49, down $0.21, or 1.77 percent, as of 12:54 PM EST.