Delta Air Lines said on Thursday it expects to boost pre-tax profit by 11 per cent to at least $5 billion next year, helped by falling jet fuel prices and rising revenue.

Speaking at its investor conference, the Atlanta-based carrier projected a net $1.7 billion benefit in 2015 from fuel-price declines, but said that includes a loss of $1.2 billion on its fuel hedges caused by the recent sharp drop in fuel prices.

Delta shares rose 4.8 per cent to $48.43 in mid-day trading on the New York Stock Exchange.

The nation's third-largest carrier by traffic is continuing to rein in other costs. It has cut debt by nearly $10 billion in the last six years, to an estimated $7.2 billion by the end of 2014, and expects next year's debt level will fall to less than $6 billion, greatly reducing interest expense.

Delta has slowed the growth of non-fuel expenses to 0.3 per cent this year from 4.6 per cent in 2012. It expects the growth to rise less than 2 per cent in 2015.

Delta said it also will cut costs by retiring its Boeing 747s and older 757 and 767 models. Delta recently ordered 25 Airbus A330neos and 25 A350-900s, which it says will produce a 15 per cent to 20 per cent reduction in seats versus 747s and allow it to reduce per-seat operating costs by more than 20 per cent.

Delta's overall capacity will increase just 2 per cent next year, including a 3 per cent increase in domestic capacity, the airline said.

Delta expects to increase revenue with several initiatives, including a new slate of fare categories it introduced on Monday. The new five-class structure adds "basic economy" aimed at travellers looking for low-cost carrier service.

Delta said a new expanded credit card agreement with American Express and its joint venture with Virgin Atlantic will also yield significant revenue next year and beyond.

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