Delta annuncia altri profitti

Delta Air Lines Announces June Quarter Profit
June quarter 2018 GAAP pre-tax income of $1.4 billion, net income of $1.0 billion and
earnings per diluted share of $1.47
on
record revenue of $
11.
8 billion
June quarter 2018 adjusted pre-tax income of $1.6 billion, adjusted net income of $1.2
billion and adjusted earnings per diluted share of $
1.7
7
Delta returned $813 million to shareholders through dividends and share repurchases
Board of Directors approved 15% increase in dividend and declared $0.35 dividend for
September quarter
ATLANTA,
July 12,
20
18
Delta Air Lines (NYSE:DAL) today reported financial results for the June
quarter
201
8. Highlights of those results, including both GAAP and adjusted metrics, are below and
i
ncorporated here.
Adjusted pre-tax income for the June quarter 2018 was $1.6 billion, a $183 million decrease from the
June 2017 quarter,
as record revenues partially offset the approximately $600 million impact of higher fuel
prices
.
With an expected $2 billion higher fuel bill for 2018, we are now forecasting our full-year earnings to be
$5.35 to $5.70 per share. We have seen early success in addressing the fuel cost increase and offset
two-thirds of the impact in the June quarter
,” said Ed Bastian, Delta’s chief executive officer. “
With strong
revenue momentum, an improving cost trajectory, and a reduction of 50-100 bps of underperforming
capacity from our fall schedule, we have positioned Delta to return to margin expansion by year end
.”
Revenue Environment
Delta’s
adjusted operating revenue of $11.6 billion for the June quarter improved 8 percent, or $880
million versus the prior year.
This quarterly revenue result marks a record for the company, driven by
improvements
across Delta’s
business, including double-digit increases in both cargo and loyalty
revenue.
Total unit revenues excluding refinery sales (TRASM) increased 4.6 percent during the period driven by
strong demand across all entities and improving yields.
Foreign exchange drove a nearly one point
be
nefit to the quarter.
***EMBARGOED UNTIL 7:00
A
M ET***
2
“The great service of the Delta people, strong demand for our product, and momentum across our
business allowed Delta to deliver the highest quarterly revenue in our history and increase our revenue
premium to the industry,” said Glen Hauenstein, Delta’s president. “While we are pleased with our
revenue performance in the quarter, accelerating the recapture of the recent fuel price increases is the
number one focus for our commercial team. We expect total unit revenue growth of 3.5 to 5.5 percent for
the September quarter as we benefit from our commercial initiatives and recapture higher fuel costs.”
Increase (Decrease)
2Q18 versus 2Q17
Change
Unit
Revenue
2Q18 ($M)
YoY
Revenue
Yield
Capacity
Domestic
7,413
7.6 %
2.0 %
2.5 %
5.5 %
Atlantic
1,782
13.9 %
11.2 %
11.1 %
2.4 %
Latin America
709
(0.8) %
0.6 %
2.4 %
(1.3) %
Pacific
642
6.9 %
10.4 %
8.0 %
(3.1) %
Total Passenger
10,546
8.0 %
4.4 %
4.6 %
3.5 %
Cargo Revenue
223
19.1 %
Other Revenue
1,006
27.1 %
Total Revenue
11,775
9.6 %
5.9 %
Third Party Refinery Sales
(216)
Total Revenue, adjusted
11,559
8.2 %
4.6 %
September
201
8 Quarter
and Full Year
Guidance
Delta expects
solid top
-line growth
, an improving cost trajectory
, and
a return to
margin
expansion
.
3Q18 Forecast
FY18 Forecast
Earnings per share
$
1.6
5
$
1.
85
$
5.
35
$
5.
70
Pre
tax margin
12
14
%
—-
Fuel price, including taxes and refinery impact
$
2.
32
$
2.
37
$
2.2
0
$
2.3
0
Total revenue growth (year
over
year)
—–
Up 7%
8%
Total unit revenue excluding refinery sales (year
over
year)
Up 3.5%
5.5%
—–
CASM
Excluding fuel and profit sha
ring (year
over
year)
~ Flat
Up
1
2%
System capacity (year
over
year)
Up 3%
4%
Up
~
3%
See Note A for information about reconciliation of projected
non-GAAP financial measures
Cost Performance
Total adjusted operating expenses for the
June quarter increased $1.1 billion versus the prior year
quarter
, with more than half of the increase driven by higher fuel prices.
Adjusted f
uel expense
increased
$578
million
, or
33
percent
, relative to
June
quarter
201
7.
Delta’s
adjusted fuel price per
gallon for
the
June
quarter was $
2.17
, which includes $
45
million
of benefit from
the refinery
.
CASM-
Ex
increased
2.9
percent
for the
June
2018
quarter
compared to
the prior year period
, a one point
improvement from the March quarter. Cost pressures w
ere
driven by
higher revenue
-related costs
and
increased aircraft rent and depreciation associated with Delta’s fleet initiatives
.
3
We expect the sequential improvement in cost trends to continue in the second half of the year as we
see additional ben
efits from our fleet restructuring, our One Delta initiatives, and annualization of
accelerated depreciation as well as prior investments in our product
,
” said Paul Jacobson, Delta’s chief
financial officer. “Our cost
structure
is an essential component of
sustainable performance,
and
by
keeping our cost growth below two percent for the year, we are positioning the company to
expand
margins by year end
.”
Adjusted n
on
operating expense
improved by
$
43
million
versus
the
prior year
,
driven primarily by
pens
ion
expense
favorability
.
Adjusted t
ax expense d
eclined $
255
million for the
June
quarter
primarily
due to the
reduction in Delta’s
book
tax rate f
rom 34
percent
to 23
percent
.
Cash Flow
and
Shareholder Returns
Delta generated $
2.
8
billion of operating
cash flow
and
$
1.
4
b
illion of free cash flow during the quarter
,
after the investment of
$
1.4
b
illion into the business
primarily for
aircraft purchases and improvements
.
For the
June
qua
rter,
Delta
returned $
813
million to shareholders, comprised of
$
6
00
million of share
repurchases and
$
21
3
million
in
divi
dends
.
The
Board of Directors
declared a
quarterly dividend of $0.3
5
per share
, an increase of
15%
over
previous levels. This change will bring the total annualized dividend commitment to approxima
tely $950
million,
consistent with the
company’s
target of returning 20 to 25 percent of free cash flow
to owners over
the long
term.
The
September quarter dividend will be
payable to shareholders of record as of the close
of business on
July
26
,
2018
, to
be paid on
August
16
, 2018.
Strategic Highlights
In the
June
quarter, Delta achieved a number of milestones across its five key strategic pillars.
Culture and People
Accrued an additional $400 million in profit sharing and paid out $23 million in Sha
red Rewards
as a testament to
the
outstanding
performance
made possible by
Delta’s more than
80,000
employees around the world.
Ranked number one corporate blood donor by the American Red Cross for
the most recent year
at 11,085 units of blood from 214 Del
ta sponsored blood drives
.
Became
a
National Signature Partner
of Junior Achievement’s
3DE
program with a
$2 million
contribution
over the next five years.
Operational Reliability
D
elivered
58
days
of zero system cance
l
lation
s
on a year
to
date basis
, up
23
days from 2017
.
A
chieved mainline on
time performance (A0) of
7
1.7
%
year
to
date
, up
1.
4
%
from
the prior year
.
Network
and
Partnerships
Launched a joint venture with Korean Air on May 1
,
expanded reciprocal codeshare flying to more
than 50 Korean Air
operated markets and 400 Delta
operated markets, and announced new
service from
Seattle
to
Osaka and Minneapolis/St. Paul
to
Seoul
in partnership with Korean Air to
begin in 2019.
4
Continued Delta’s global expansion
with
the launch of new service
includin
g
Los Angeles to Paris
and Amsterdam
;
Indianapolis
to
Paris; and Atlanta
to
Lisbon. Delta also
announced
plans
to
begin nonstop flights between the United States and Mumbai, India
in 2019
.
Customer Experience
and Loyalty
Debuted
the
first refreshed 777
20
0ER aircraft featuring the award
winning Delta One suite, the
popular Delta Premium Select cabin and 9
abreast seating in the
M
ain
C
abin in addition to all
new interior features and in
flight entertainment.
Launched new uniforms for 64,000 Delta employees
worldwide, created by acclaimed designer
Zac Posen and built with Lands’ End quality. The designs embrace innovative fit, form and
function, and carry Delta into the future in style.
Opened the
newly renovated Delta Sky Club at Ronald Reagan Washington Nat
ional Airport
(DCA) with an additional 1,800 square feet of space for
guests to enjoy.
Investment Grade Balance Sheet
Completed a $1.6 billion unsecured debt offering through a mix of three
, five
, and 10
year notes
at a blended
yield
of 3.85 percent. The proceeds from this offering were used to refinance
secured debt an
d will lower Delta’s overall interest e
xpense by $20 million annually
on a run
rate
basis
.
Increased
revolver
capacity by $635 million, to a total of $3.1 billion
in
undrawn revolving credit
facilities.
June
Quarter Results
S
pecial items
for the
quarter
consist primarily of mark
to
market adjustments on
refinery
fuel hedges
and
unrealized gains
/losses
on investments
.
Annunci

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