Adjusted net income was $1.0 billion or $1.32 per diluted share.
“We have started 2016 with tremendous momentum, generating over $1.5 billion in adjusted pre-tax income, delivering industry-leading operations including 49 days of perfect mainline completion factor for our customers, and reaching our goal of becoming an investment grade company. With these results, the Delta people have proven again that they are the very best in the industry.
“We will continue to be disciplined with our business in the face of volatile fuel prices, strengthen our foundation, and prove our position as the airline that consistently delivers top results for our employees, our owners and the customers and communities we serve”, said Ed Bastian, Delta’s incoming chief executive officer.
Delta’s operating revenue for the March quarter decreased 1.5 percent, or $137 million, driven by $125 million in foreign currency pressures and a $5 million impact from the recent events in Brussels.
Passenger unit revenues declined 4.6 percent, including 2 points of impact from foreign currency, on a 2.7 percent increase in capacity.
“The momentum with our commercial initiatives, including corporate share gains, Branded Fares, and our partnership with American Express, allowed us to maintain our top line performance in the March quarter despite 40 percent lower market fuel prices and $125 million of pressure from foreign currency.
“We are forecasting a unit revenue decline of 2.5 – 4.5 percent for the June quarter. While this is an improvement over our March quarter performance, we are focused on getting unit revenues back to a positive trajectory and we will make adjustments to our fall capacity levels if we are not making sufficient progress over the coming months”, said Glen Hauenstein, Delta’s incoming president.
Adjusted fuel expense2 declined $1.45 billion compared to the same period in 2015, on 40 percent lower market fuel prices. For the quarter, the refinery produced a loss of $28 million. Settled hedge losses were $118 million.
CASM-Ex3 including profit sharing, increased 4.5 percent for the March 2016 quarter compared to the prior year period, with foreign exchange and the benefits of Delta’s domestic refleeting and other cost initiatives offsetting the company’s investments in its products, operations and employees.
Half of the increase was attributable to $136 million of higher profit sharing expense.
posted by: Sade Williams