Delta Air Lines said on Wednesday that it would cut some of its international flights in coming months as the rising value of the dollar eroded revenue abroad.
Delta reported its highest first-quarter earnings and said it would continue to post record profit margins in the next quarters as it benefited from falling oil prices.
In the first quarter, Delta reported net income of $746 million, up from $213 million in the period last year. Its operating margin in the quarter was 14.9 percent, a level seldom seen in the airline business, largely because of a drop in fuel costs.
The airline, based in Atlanta, said it planned to cut some winter flights as foreign sales weakened. Because of growth in domestic service, however, Delta expects its total capacity in the fourth quarter to remain flat.
The reductions in international service include 15 to 20 percent trims in service from Japan in the fourth quarter, 15 percent to Brazil and 15 to 20 percent to Africa, India and the Middle East. Delta also said it would suspend service to Moscow for the winter.
Delta is leading the fight to restrict flights from the three giant Middle East carriers into the United States. The Obama administration has said it will review the complaint and this week the State, Commerce and Transportation Departments opened the docket for public comments.
Richard Anderson, Delta's chief executive, said in a conference call on Wednesday that the federal government should first tackle the question of state support from the United Arab Emirates and Qatar to Emirates, Etihad Airlines and Qatar Airways before considering more liberal trade deals with Asia or Europe.
He compared the move to restrict flights from the three Gulf carriers to dealing with Chinese steel dumping or tackling foreign agricultural subsidy cases. Unlike such trade deals, however, open skies agreements do not fall under World Trade Organization rules that ban government subsidies.
Delta shares rose to $44.10, up 2.4 percent, in midday trading as investors welcomed the focus on keeping limits on capacity and the continuing policy of returning cash to shareholders.
The announced service cuts amount to 3 percent of Delta's international capacity.
"This is music to the ears of many investors who believe Delta should not overgrow capacity," Helane Becker, an airline analyst with Cowen & Company, wrote in a research note. "The international markets have been a drag on results recently."
Delta has become a cash-generating machine under Mr. Anderson. Delta said it had made $511 million in free cash flow in the quarter. It paid back $75 million in dividends and bought back $425 million worth of its own shares. It also made $900 million in pension contributions.
Delta expects its operating margin to be 16 to 18 percent in the second quarter.
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