Higher revenue drives profits at Delta Air Lines

Higher revenue drives profits at Delta Air Lines

Delta Air Lines has reported adjusted pre-tax income of $1.85 billion for the June 2017 quarter.

This represents a $172 million increase from the June 2016 quarter, primarily driven by higher revenue. 

Delta recorded a June quarter 2017 adjusted operating margin of 18.4 per cent. 

The carrier also delivered these results despite a $125 million negative impact from the operational disruption following severe storms in Atlanta in early April.

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“The June quarter ranks among the best in Delta’s history as our people delivered top financial, operational, and customer satisfaction results – and it is an honour to recognise that performance with an additional $338 million toward our 2017 profit sharing,” said Ed Bastian, Delta chief executive.

“While 2017 is a transition period for Delta, we are encouraged by the improvement in unit revenues, leading to increasing conviction in our ability to expand margins as we move through the back half of the year.”

Delta’s record operating revenue of $10.8 billion for the June quarter was up $344 million versus prior year, despite a $115 million headwind from April‘s operational disruption. 

Passenger revenue increased $261 million, including $100 million from Delta’s Branded Fares initiatives. 

Passenger unit revenues increased 2.5 per cent on 0.4 per cent higher capacity.

Cargo revenue increased 11 per cent, driven by higher volumes in freight and mail. 

Other revenue increased, five per cent primarily due to higher SkyMiles revenue and third-party refinery sales. 

“The June quarter marked Delta’s return to unit revenue growth after two and a half years.

“This improvement resulted from a strengthening demand environment and our commercial initiatives to provide customers more choice, an innovative experience, and a broader global network,” said Glen Hauenstein, Delta president.

“We expect this momentum to continue in the September quarter, with passenger unit revenue growth of 2.5 to 4.5 per cent as we focus on driving a sustainable revenue premium to the industry.”

More Information

Delta Air Lines is Supporting Partner for the upcoming World Travel Awards Latin America Gala Ceremony 2017 and Caribbean & North America Gala Ceremony 2017.

Find out more about the World Travel Awards on the official website.