2015: A Record Year For Delta Air Lines, Inc. (NYSE: DAL)

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Delta Air Lines

Delta Air Lines, Inc. (NYSE: DAL) issued a report today affirming that the company’s performance in 2015 was a record for the company, posting $5.9 billion in adjusted pre-tax profit.

Delta CEO Richard Anderson said that he plans to reward the team’s performance with a $1.5 billion profit sharing program for the year. The company was able to accumulate over $3 billion in savings due to lower fuel prices as well as the various cost initiatives that have already been put in place. As a result, the company expects to gain a top ranking among the S&P industrials.

Despite global economic challenges, the airline is expected to improve again this year on earnings growth, margins and cash flow. Nevertheless, the company’s operating revenue for the most recent quarter was reported to have decreased by 2% due to $160 million in foreign currency pressures.

In terms of cost, the company saw a dramatic fall in fuel expenses of $726 million compared with the same period in 2014. The company’s debt initiative continued to lower interest expense. Compared to 2014, the debt reduction initiative was able to save $35 million in debt service costs.

The company experienced a 1.6% fall in passenger unit revenue this quarter to $0.1396. On the other hand, unit revenue was impacted by foreign exchange swings by two percentage points. Further statistics show that capacity was flat at 58.199B available seat miles. There was a significant rise in load factor during this quarter to 85.2%, an equivalent of 240bps.

Delta is a company that has achieved a lot since overcoming its financial troubles. It was named to FORTUNE 500 magazine’s Most Admired Companies. It was also named the worlds most admired airline for the fourth time in five years.

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