October 11, 2017
Delta Air Lines posts 2017 September quarter profit
Delta Air Lines has released financial results for the September quarter 2017. Adjusted pre-tax income for the September 2017 quarter was US$1.7bn, a US$182m decrease from the September 2016 quarter. Pre-tax income includes a US$120m reduction from the operational disruption following Hurricane Irma that hit the Caribbean, Florida, Georgia and, specifically, Delta’s hub in Atlanta. Delta’s operating revenue of US$11.1bn for the September quarter was up 5.5%, or US$577m versus prior year, despite a US$140m reduction from Hurricane Irma. Passenger revenue increased US$328m, including US$160m from Delta’s Branded Fares initiatives. Passenger unit revenues increased 1.9% on 1.6% higher capacity. Cargo revenue increased 11.5%, driven by higher volumes in freight and mail. Other revenue increased 18.4% primarily due to higher loyalty revenue and third-party refinery sales. For the December quarter, Delta is expecting continued pressure on margins as its unit revenue momentum catches up to the rise in fuel prices that began in July.