Delta Air Lines Reports Pre-tax Income of $2.4 Billion for June 2016 Quarter

0
605
Atlanta based, Delta Air   has announced pretax income of $2.4 billion and an adjusted pre-tax income for the June 2016 quarter of $1.7 billion, a $42 million increase over June 2015 quarter.  Adjusted net income was $1.1 billion or $1.47 per diluted share.
 “The Delta people again delivered another quarter of solid profitability, superior operational performance and great customer service, continuing to strengthen our brand and our foundation for the future,” said Ed Bastian, Delta’s chief executive officer. 
Delta’s operating revenue for the June quarter decreased two percent, or $260 million, of which $65 million was due to foreign currency pressures.  Passenger unit revenues declined 4.9 percent, including 1 point of impact from foreign currency, on a 3.2 percent increase in capacity.
“While the revenue environment remains challenging, with persistent headwinds from close-in domestic yields and geopolitical uncertainty, we remain focused on achieving our goal of positive unit revenues by year end,” said Glen Hauenstein, Delta’s president. 
  Adjusted fuel expense declined $408 million compared to the same period in 2015; on 28 percent lower market fuel prices.  Hedge losses for the quarter totaled $614 million, including $455 million of early settlements. Delta has no hedge book remaining for 2016.
 
Non-operating expense declined by $35 million driven by $34 million of lower interest expense.
 
“Our commitment to cost productivity is a key part of achieving our long-term financial goals while continuing to make investments in our people, product and service,” said Paul Jacobson, Delta’s chief financial officer.    
The airline generated $2.6 billion of adjusted operating cash flow and $1.6 billion of free cash flow during the quarter.  The company used this strong cash generation to invest $1.0 billion into the business, including roughly $880 million in fleet investments. 
Delta Air Lines serves nearly 180 million customers each year. In 2016, Delta was named to Fortune’s top 50 Most Admired Companies in addition to being named the most admired airline for the fifth time in six years. Additionally, Delta has ranked No.1 in the Business Travel News Annual Airline survey for an unprecedented five consecutive years.
With an industry-leading global network, Delta and the Delta Connection carriers offer service to 337 destinations in 62 countries on six continents. Headquartered in Atlanta, Delta employs more than 80,000 employees worldwide and operates a mainline fleet of more than 800 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry’s leading transatlantic joint venture with Air France-KLM and Alitalia as well as a joint venture with Virgin Atlantic.
Click to Reply, Reply All or Forward