Delta Airlines
Delta
Air Lines has reported financial results for the September quarter
2018, with adjusted pre-tax income put at $1.6 billion while adjusted
earnings per share was $1.80.
Adjusted earnings per share were up 16 per cent compared to the prior
year quarter, driven by revenue momentum, tax reform benefits and a
four per cent lower share count.
However, results reflect a $30 million negative impact from Hurricane Florence.
Delta’s Chief Executive Officer, Ed Bastian, said the solid eight per
cent revenue growth, combined with flat non-fuel unit cost performance,
helped offset 85 per cent of the $655 million fuel cost increase in the
quarter.
“These achievements are a testament to the strength of the Delta
business model and the hard work of the Delta people, and I am pleased
to recognize their performance with an additional $395 million toward
2018 profit sharing.
“Our commercial momentum and improved cost trajectory give us
confidence that we are on a path to deliver continued top-line growth
and expand margins as we move into 2019,” Bastian said.
Delta’s adjusted operating revenue of $11.8 billion for the September
quarter improved eight percent, or $912 million versus the prior year.
This quarterly revenue result marks a record for the company, driven
by improvements across Delta’s business, including a nearly 20 per cent
increase in premium product ticket revenues and double-digit percentage
increases in cargo, loyalty and Maintenance, Repair and Overhaul
revenue.
Total unit revenues excluding refinery sales (TRASM) increased 4.3
per cent during the period driven by strong demand and improving yields.
Foreign exchange benefit of approximately half a point was offset by
the impact of Hurricane Florence.
Delta’s president, Glen Hauenstein, said the group generated record
revenues in the September quarter on strong demand across the business
and a favorable yield environment.
Looking ahead, Hauenstein said they expect of December quarter a
total unit revenue growth of three to five per cent, driving full year
revenue growth to eight per cent.
“The benefits of our brand, industry-leading network, and relentless
focus on the customer are driving revenue growth, improving margins and
accelerating the pace of our recapture of higher fuel costs,” he said.
Despite an expected 30 per cent increase in fuel price, Delta expects
pre-tax margins to stabilise in the December quarter driven by
continued top-line growth and improving cost performance.
Total adjusted operating expenses for the September quarter increased
$1.0 billion versus the prior year quarter, with more than half of the
increase driven by higher fuel prices.
SOURCE: https://guardian.ng/business-services/delta-airlines-posts-1-6-billion-income-in-third-quarter/
