Delta’s quarterly revenue rises alongside a 62 per cent jump in fuel expense
Delta Air Lines’ adjusted earnings reached 1.72 dollars per share in its September quarter. Adjusted revenue increased 16 per cent despite unchanged flight capacity, while fuel expense rose 62 per cent. Premium cabins, cargo and maintenance all recorded revenue growth. The US airline also generated free cash flow and reduced adjusted net debt compared with the end of last year.
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Adjusted earnings reach 1.72 dollars per share
US airline Delta Air Lines released its September-quarter results on October 9, reporting adjusted earnings of 1.72 dollars per share.[1], [2]
Delta reported adjusted revenue of 17.6 billion dollars, up 16 per cent from a year earlier, with flight capacity unchanged. Premium-cabin revenue rose 18 per cent while premium seats increased 6 per cent. Cargo revenue grew 29 per cent, maintenance and repair revenue 28 per cent, and loyalty revenue 18 per cent.[1]
Fuel expense rises to 4.1 billion dollars
Fuel expense increased 62 per cent from a year earlier to 4.1 billion dollars. Non-fuel unit costs rose 7.3 per cent. Delta’s adjusted operating profit was 1.7 billion dollars and its adjusted operating margin was 9.4 per cent. Under generally accepted accounting principles, the company reported revenue of 20.2 billion dollars, operating profit of 1.5 billion dollars and earnings of 1.15 dollars per share.[1]
Quarterly free cash flow reaches 463 million dollars
Delta generated operating cash flow of 1.7 billion dollars and free cash flow of 463 million dollars during the quarter. Free cash flow since the start of the year reached 1.9 billion dollars. Adjusted net debt was 13.4 billion dollars, down 950 million dollars from the end of last year. The company made 1.2 billion dollars in debt and lease payments during the quarter. Total liquidity was 6.9 billion dollars, including 3.1 billion dollars of unused revolving credit facilities.[1]
