Wednesday, 22 October 2014

Delta Air Lines forecasts high revenue by end of 2014

Delta Air Lines forecasts high pre-tax revenue in excess of $4 Billion by the end of year 2014 with the announcement of $1.6 billion pre-tax income for the month of September quarter.

It's September 2014 income according to a release is an increase of $431 million over the September 2013 quarter on a similar basis. The net income for the September 2014 quarter was $1.0 billion, or $1.20 per diluted share with operating margin at 15.8 percent.

According to Richard Anderson, Delta's chief executive officer, "While we have more work ahead of us to achieve our long-term financial goals, we expect a record fourth quarter of 2014 with an operating margin of 10-12%.

“For the full year (2014), we expect a pre-tax profit in excess of $4 billion. We have the right foundation in place for an even stronger 2015, proven strategies for Delta, and 80,000 Delta employees who are the very best in the industry. With another record profit, solid margin expansion and nearly $1 billion of free cash flow, Delta's results are consistent with high-quality S&P 500 industrials," Anderson stated.

Ed Bastian, Delta’s President captures the Delta performance succinctly, “For the December quarter, the overall revenue environment remains solid, with unit revenues expected to increase by 0-2%, and we are on track to produce another quarter of good top line growth, margin expansion and free cash flow. Looking further ahead, our international network provides the largest opportunity for additional margin improvement, as we accelerate our Pacific network restructuring, recalibrate our transatlantic capacity levels, and reap the benefits of our investment in our Latin network."

These results conclude to a staggering $823 million profit so far.

Delta Air Lines have been generating a $910 million free cash flow in this September quarter, surpassing its 2013 record.

This translated into an adjustment of net debt to $7.4 billion and a return in dividends and share repurchases of $325 million to its shareholders.