Delta Airlines Makes Net Income Of $1.3bn

  • Delta Airlines Makes Net Income Of $1.3bn
  • Delta Air Lines has reported financial results for the September quarter 2018 with GAAP pre-tax income of $1.7 billion, net income of $1.3 billion and earnings per diluted share of $1.91 on record revenue of $12.0 billion. Returning $566 million to shareholders through dividends and share repurchases, the airline also indicated September quarter 2018 adjusted pre-tax income of $1.6 billion, adjusted net income of $1.2 billion and adjusted earnings per diluted share of $1.80 The report released recently showed adjusted pre-tax income for the September quarter 2018 was $1.6 billion, and adjusted earnings per share were $1.80, at the high end of guidance. Adjusted earnings per share were up 16 percent compared to the prior year quarter, driven by revenue momentum, tax reform benefits and a four percent lower share count.
    Results reflect a $30 million negative impact from Hurricane Florence. Commenting, Ed Bastian, Delta’s chief executive officer said “our solid eight percent revenue growth, combined with flat non-fuel unit cost performance, helped offset 85 percent 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 added.
    On Revenue Environment, 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 percent increase in premium product ticket revenues and double-digit percentage increases in cargo, loyalty and Maintenance, Repair and Overhaul revenue.

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