Delta Says 2011 Profitable, 2012 Outlook Good

By Jim Burress

Atlanta, GA – Atlanta-based Delta Air Lines says it expects to wrap up the year with more than a billion dollars in profit.

Delta's model for achieving similar profits in 2012 involves repeating what it did this year -- cut seat capacity, but fill the remaining seats and make more money off each person sitting in them.

Speaking to investors in New York City, CEO Richard Anderson said adapting to new market realities has strengthened Delta's position.

"High fuel prices and tight capital markets have acutally had in somewhat perverse effect a positive on the industry, because capacity now must match demand."

And, Anderson says, high fuel prices make it harder for start-ups and discount carriers to enter the market.

Delta plans 2-3% cuts in overall capacity next year, partly through reducing reliance on 50-seat regional jets, and by service cuts to weaker European markets.

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