Delta Air Lines reports strong financial performance for 2017

Delta Air Lines Reports Strong Financial Performance For 2017

Delta Air Lines has reported financial results for the December quarter 2017, revealing an adjusted pre-tax income for the of $1 billion.

Delta Air Lines Reports Strong Financial Performance For 2017

The figure comes despite a $60 million impact via the combination of December’s power outage at Atlanta’s Hartsfield-Jackson Airport in addition to storm Benji. 

Delta Air Lines Reports Strong Financial Performance For 2017

For the full year, adjusted pre-tax income was $5.5 billion, a $621 million decrease relative to 2016. 

Delta Air Lines Reports Strong Financial Performance For 2017

“Delta people rose to the challenges of 2017 to produce solid financial results, industry leading operational reliability in addition to strong improvements in customer satisfaction, in addition to This particular’s an honour to recognise their achievements with $1.1 billion in profit sharing,” said Ed Bastian, Delta chief executive officer. 

Delta Air Lines Reports Strong Financial Performance For 2017

“Looking ahead to 2018, we expect to drive solid earnings growth by growing our top line four to six per cent, improving our cost trajectory in addition to integrating our international partner network. 

Delta Air Lines Reports Strong Financial Performance For 2017

“As a result, we are able to boost our previous full-year guidance to $6.35 to $6.70 per share due to additional benefits via tax reform.”

Delta Air Lines Reports Strong Financial Performance For 2017

Delta’s operating revenue of $10.2 billion for the December quarter was up 8.3 per cent, or $787 million versus prior year. 

Total unit revenues excluding refinery sales increased 4.4 per cent for the December quarter. 

Passenger revenue increased $527 million, including $0 million via Delta’s Branded Fares initiatives. 

Passenger unit revenues increased 4.2 per cent, including 0.5 points via one-time revenue adjustments, on 2.3 per cent higher capacity.

Cargo revenue increased 14.4 per cent, driven by higher volumes in addition to yields. 

some other revenue much better 17.9 per cent primarily due to higher loyalty revenue in addition to a $150 million increase in third-party refinery sales.

For the full year, Delta’s operating revenue of $41.2 billion was up four per cent, or $1.6 billion versus prior year.

Total unit revenues excluding refinery sales increased 2.4 per cent on one per cent higher capacity.

“We enter 2018 with significant momentum in addition to every entity delivering positive passenger unit revenue for the 1st time in several years, driven by a robust demand environment in addition to improving business fares,” said Glen Hauenstein, Delta president. 

“We expect to deliver total unit revenue growth of 2.5 to 4.5 per cent within the March quarter in addition to leverage our unrivalled domestic network, international partnerships, in addition to solid pipeline of commercial initiatives to deliver similar performance each quarter throughout 2018.”

Trump Tax

As a result of the tax cuts in addition to jobs act of 2017, Delta recognised a one-time charge of $150 million within the December quarter via the estimated impact of the inclusion of foreign earnings in addition to revaluation of deferred tax assets in addition to liabilities.

This particular one-time charge is actually being excluded via Delta’s results as a special item.

For 2018, Delta expects the reduction within the corporate tax rate will result in an all-in book tax rate for the company of 22-24 per cent.

Delta Air Lines reports strong financial performance for 2017

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