Delta Air Posts 70% Profit Growth

Delta Airlines has reported
a 70 per cent profit increase in its financial results for the December 2014 quarter.
“On 2014 performance – an industry-leading operation, superior customer service and a 70 per cent increase in profits shows that Delta Airline is focused on delivering growing value for its employees, customers and investors”, said Delta’s Chief Executive officer, Mr Richard Anderson.
“As we begin 2015, we have a significant opportunity from lower fuel prices, which will drive more than $2 billion in fuel savings over 2014. Through our capacity discipline, pricing our product to demand, and the fuel saving, we expect to drive double-digit earnings growth, along with increased free cash flow and a higher return on invested capital in the upcoming year” Anderson added.
Delta’s operating revenue improved six per cent or $571 million, in the December 2014 quarter compared to the December 2013 quarter. Traffic increased 4.0 per cent on a 3.7 per cent increase in capacity.
Passenger revenue increased by 4.6 per cent, or $361 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 0.8 per cent year over year with a 0.6 per cent improvement in yield.
Cargo revenue increased 2.1 per cent or $5 million, driven by increases in both freight volumes and yields. Other revenue increased to 21.3 per cent, or $205 million driven by Sky Miles revenues, third-party refinery sales and joint venture settlements.
“Delta delivered solid revenue performance in the December quarter, growing our top line by 6 per cent against a backdrop of nearly 15 per cent lower fuel prices”, said Ed Bustian, Delta’s president.
While we face headwinds from the stronger dollar and lower fuel prices going forward, we have confidence, we can continue to generate top-line growth as we realize additional benefit from our Virgin Atlantic Joint Venture, structure our pacific network, gain additional corporate share and ramp up our merchandising effort with branded fares and enhanced customer segmentation”, he said.
According to him, our margin postings are manageable in light of our strong cash generation and balance sheet.