United States mega carrier, Delta Airlines has announced a $1.6 billion pre-tax profit for the second quarter of 2015, an amount that is $202 million more than Q2 2014 .Travel analysts say the airline has broken another record by this feat.
Delta Airlines flies daily between Atlanta and Lagos.
The airline reported adjusted net income1 of $1.0 billion or $1.27 per diluted share, up 22 percent 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.
“We have more work and opportunity ahead of us on all of these fronts as we continue to execute on our long-term plan.
“Our significant fuel savings in the September quarter should allow us to produce another record quarter with more than 30 percent EPS growth, a 19-21 percdent operating margin and $1.9 billion of operating cash flow”, Richard Anderson, Delta’s chief executive officer, said.
Delta’s operating revenue for the June quarter increased 1 percent, despite $160 million in foreign currency pressures which reduced unit revenues by approximately 2 points.
Passenger unit revenues however declined 4.6 percent on a 3.9 percent 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.
“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”, ,” said Ed Bastian, Delta’s president.
Strengthening its existing partnership with GOL, Delta recently agreed to purchase up to $56 million in preferred shares as part of a larger rights offering by the Brazilian carrier.
In addition to the equity, Delta will guarantee up to $300 million in borrowings by GOL under a term loan with third-party lenders.
Delta and GOL have also agreed to extend their exclusive commercial agreement for flights between the United States and Brazil, the largest aviation market in Latin America.
This transaction is subject to normal closing conditions, including regulatory approvals.
Delta Airlines serves more than 170 million customers each year.
Its connection carriers offer service to 334 destinations in 64 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft.
Sade Williams
