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| Delta fleet. Photo: Wikimedia |
[Avionics Today 01-20-2016] Delta Air Lines reported a profitable quarter buoyed by dropping oil prices, including net income of $926 million, up 51 percent from the December quarter of 2014.
“Our 2015 performance was a record for Delta on all fronts – with industry-leading operational performance, superior customer satisfaction, and a $5.9 billion adjusted pre-tax profit,” said Richard Anderson, Delta’s chief executive officer. “As we look ahead to 2016, we have a significant opportunity to improve our performance even further. With over $3 billion in potential savings from lower fuel prices and numerous commercial, operational and cost initiatives already in place, we expect to again perform in the top tier of the S&P Industrials on earnings growth, margins and cash flows this year despite global economic challenges.”
Delta generated $1.4 billion of adjusted operating cash flow and $300 million of free cash flow during the quarter. The company used this strong cash generation to reinvest $1.1 billion back into the business, including $900 million for aircraft acquisitions, fleet modifications and six slot pairs at London’s Heathrow airport.