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Q3 at Delta: $1.6 Billion profit, $431 million higher than last Q3

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General Lee

Well-known member
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Aug 24, 2002
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Delta Air Lines Announces September Quarter Profit
PR Newswire Delta Air Lines

ATLANTA, Oct. 16, 2014 /PRNewswire/ -- Delta Air Lines (DAL) today reported financial results for the September 2014 quarter. Key points include:

Delta's pre-tax income for the September 2014 quarter was $1.6 billion, excluding special items1, an increase of $431 million over the September 2013 quarter on a similar basis. Delta's net income for the September 2014 quarter was $1.0 billion, or $1.20 per diluted share, and its operating margin was 15.8 percent, excluding special items.

On a GAAP basis including special items, Delta's pre-tax income was $579 million, operating margin was 7.5 percent and net income was $357 million, or $0.42 per diluted share.

Results include $384 million in profit sharing expense in recognition of Delta employees' contributions toward achieving the company's financial goals, which makes a year-to-date profit sharing accrual of $823 million.

Delta generated $910 million of free cash flow during the September 2014 quarter. The company used its strong cash generation in the quarter to reduce its adjusted net debt to $7.4 billion and return $325 million to shareholders through dividends and share repurchases.
.
"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," said 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, 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."

Revenue Environment
Delta's operating revenue improved 7 percent, or $688 million, in the September 2014 quarter compared to the September 2013 quarter, driven by continued strength in corporate and domestic revenues. Traffic increased 3.7 percent on a 3.2 percent increase in capacity.

Passenger revenue increased 6 percent, or $522 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 2.4 percent year-over-year with a 1.9 percent improvement in yield. Seat-related products and other merchandising initiatives increased revenues by nearly $50 million versus the prior year period.

Cargo revenue increased 7 percent, or $15 million, on higher freight yields and volumes.Other revenue increased 15 percent, or $151 million, driven by joint venture, SkyMiles revenues, and third-party refinery sales.





Bye Bye---General Lee
 
Not surprising. Delta's turned into a juggernaut, with a world class CEO who's made some smart business decisions. The demise of Airtran has allowed them to increase yield substantially in ATL and they provide a very high quality product. They hit their own 15% ROIC without even flexing. It's impossible to get a seat on them out of Atlanta, even getting a jumpseat on them is tuff these days. Good for them, bad for me.
 
Cue the haters in 3....2......1.....
 
Another great Quarter. I agree with Fred. Great CEO, excellent product, and a well executed operation. Congrats on another strong Quarter.
 
Delta Air Lines Announces September Quarter Profit
PR Newswire Delta Air Lines

ATLANTA, Oct. 16, 2014 /PRNewswire/ -- Delta Air Lines (DAL) today reported financial results for the September 2014 quarter. Key points include:

Delta's pre-tax income for the September 2014 quarter was $1.6 billion, excluding special items1, an increase of $431 million over the September 2013 quarter on a similar basis. Delta's net income for the September 2014 quarter was $1.0 billion, or $1.20 per diluted share, and its operating margin was 15.8 percent, excluding special items.

On a GAAP basis including special items, Delta's pre-tax income was $579 million, operating margin was 7.5 percent and net income was $357 million, or $0.42 per diluted share.

Results include $384 million in profit sharing expense in recognition of Delta employees' contributions toward achieving the company's financial goals, which makes a year-to-date profit sharing accrual of $823 million.

Delta generated $910 million of free cash flow during the September 2014 quarter. The company used its strong cash generation in the quarter to reduce its adjusted net debt to $7.4 billion and return $325 million to shareholders through dividends and share repurchases.
.
"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," said 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, 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."

Revenue Environment
Delta's operating revenue improved 7 percent, or $688 million, in the September 2014 quarter compared to the September 2013 quarter, driven by continued strength in corporate and domestic revenues. Traffic increased 3.7 percent on a 3.2 percent increase in capacity.

Passenger revenue increased 6 percent, or $522 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 2.4 percent year-over-year with a 1.9 percent improvement in yield. Seat-related products and other merchandising initiatives increased revenues by nearly $50 million versus the prior year period.

Cargo revenue increased 7 percent, or $15 million, on higher freight yields and volumes.Other revenue increased 15 percent, or $151 million, driven by joint venture, SkyMiles revenues, and third-party refinery sales.





Bye Bye---General Lee

Nicely done General/Delta. Now go get one hell of a contract so that APA can use that to help improve ours. We are all counting on you! Maybe the roles may be reversed in the future and we can help u out too.
 
Nicely done General/Delta. Now go get one hell of a contract so that APA can use that to help improve ours. We are all counting on you! Maybe the roles may be reversed in the future and we can help u out too.

I agree. Hopefully that will happen.


Bye Bye---General Lee
 
Delta will offer us 6-8% date of signing and 3-4% a year. As usual, 60% will vote yes and 40% no. Pilots need to keep in mind we gave the most and were the ONLY employee group to have it's DB plan terminated. Tired of the argument if we get x then the other employee groups must get it as well.....
 

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