Delta Air Lines has reported financial results for the June 2015 quarter, including adjusted net income of $1 billion or $1.27 per diluted share, up 22 per cent from the June quarter of 2014.

“Delta’s record results have allowed the company to invest in its employees through higher wage rates and profit sharing; improve the experience for our customers through new aircraft and innovative partnerships with global carriers; and uniquely deliver value for our shareholders by accelerating our capital returns while also paying down debt,” said Richard Anderson, Delta’s chief executive officer.

“We have more work and opportunity ahead of us on all of these fronts as we continue to execute on our long-term plan.”

Anderson continued: “Our significant fuel savings in the September quarter should allow us to produce another record quarter with more than 30 per cent EPS growth, a 19-21 per cent operating margin and $1.9 billion of operating cash flow.”

Delta’s operating revenue for the June quarter increased one per cent, despite $160 million in foreign currency pressures which reduced unit revenues by approximately two percentage points. 

Passenger unit revenues declined 4.6 per cent on a 3.9 per cent decline in yields.

Delta saw solid progress with several of its revenue initiatives, including Branded Fares, which increased passenger revenues by $56 million, and its enhanced agreement with American Express, which produced an incremental $60 million in revenue.

“Our commercial initiatives continue to gain traction in the marketplace and we will produce summer margins in excess of any achieved in our history,” said Ed Bastian, Delta’s president. 

“However, unit revenue growth is an important component of our long-term plan to expand margins. 

“We continue to project flat system capacity growth for the fourth quarter of 2015 – a level in line with current demand expectations, which should put the business on the right trajectory to stem the erosion in unit revenues by the end of the year.”