Delta Airlines announces March quarter profit

American Delta Air Lines has reported financial results for the March quarter 2017.

While adjusted pre-tax income for the March 2017 quarter was $847 million, a $713 million decrease from the March 2016 quarter was recorded primarily driven by higher fuel prices.

According to Delta’s Chief Executive Officer, Ed Bastian: “Despite fuel price pressures, the Delta people once again delivered solid results across the board, with double digit operating margins, strong improvements in customer satisfaction, and progress on our international expansion with the closing of our Aeroméxico transaction. Producing these results in our toughest quarter of the year shows not only how far we’ve come, but also that we have more opportunity in front of us to continue building a better airline for our employees, customers, and owners.”

While Delta’s operating revenue for the March quarter was down $103 million versus prior year, including $20 million of lower year over year currency hedge gains, passenger unit revenues declined 0.5 per cent on 0.5 per cent lower capacity.

“March marked the first month of positive passenger unit revenues since November 2015 and we are encouraged by the current fare and demand trendsacross the network. We expect June quarter passengerunit revenues to increase one to three per cent and remain positive throughout the year. However, we will keep our full year capacity growth capped at one percent to support this unit revenue momentumand the company’s return to margin expansion,” said Glen Hauenstein, Delta’s President.

During the quarter, Delta contributed $2.6 billion in cash, including $1.5 billion of the debt proceeds, and $350 million in company stock to the pension plan during theMarch quarter.