Delta Air Lines (NYSE: DAL) captured more revenue from passengers in the first quarter, but the airlines' costs also climbed.
The second-largest U.S. airline on Thursday said first-quarter net income was $547 million, or 77 cents a share, down from $561 million, or 77 cents a share, in the year-ago period.
However, on an adjusted basis, the company earned 74 cents a share, a cent above analysts' expectations, according to Thomson Reuters.
Said CEO Ed Bastian "The Delta people delivered a strong March quarter, and our record revenue was a direct result of the great service and operational reliability they provided for our customers. It’s an honour to recognize their hard work with $183 million toward our 2018 profit sharing.
"We have confidence in our plan to grow earnings in 2018 through top-line growth, improving our cost trajectory, and leveraging our international partnerships."
Revenue in the first three months of 2018 was $9.76 billion, slightly below Wall Street's estimate of $9.85 billion.
Transatlantic routes were particularly strong, with revenue from those routes up 15% from a year earlier, more than any other region.
But the airline also faced higher labour costs and a slew of powerful winter storms in the first quarter. Those storms cost it $44 million.
Total unit revenues excluding refinery sales increased 5% during the period, with foreign currency contributing just over 0.5 points of benefit. This marks the fourth consecutive quarter of year-over-year growth, with all geographic regions delivering positive results.
Share prices for the carrier got lift of 97 cents, or 1.9%, early Thursday morning to $52.46.
