Delta Air Lines today reported financial results for the June quarter 2018. Highlights of those results, including both GAAP and adjusted metrics, are below and incorporated here.

Prilagođeni prihod prije oporezivanja za junski kvartal 2018. iznosio je 1.6 milijardi dolara, što je smanjenje od 183 miliona dolara u odnosu na kvartal iz juna 2017. godine, jer su rekordni prihodi djelimično neutralizirali uticaj viših cijena goriva od otprilike 600 miliona dolara.
“With an expected $2 billion higher fuel bill for 2018, we are now forecasting our full-year earnings to be $5.35 to $5.70 per share. We have seen early success in addressing the fuel cost increase and offset two-thirds of the impact in the June quarter,” said Ed Bastian, Delta’s Chief Executive Officer. “With strong revenue momentum, an improving cost trajectory, and a reduction of 50-100 bps of underperforming capacity from our fall schedule, we have positioned Delta to return to margin expansion by year end.”

Revenue Environment

Delta’s adjusted operating revenue of $11.6 billion for the June quarter improved 8 percent, or $880 million versus the prior year. This quarterly revenue result marks a record for the company, driven by improvements across Delta’s business, including double-digit increases in both cargo and loyalty revenue.

Total unit revenues excluding refinery sales (TRASM) increased 4.6 percent during the period driven by strong demand across all entities and improving yields. Foreign exchange drove a nearly one point benefit to the quarter.

“The great service of the Delta people, strong demand for our product, and momentum across our business allowed Delta to deliver the highest quarterly revenue in our history and increase our revenue premium to the industry,” said Glen Hauenstein, Delta’s President. “While we are pleased with our revenue performance in the quarter, accelerating the recapture of the recent fuel price increases is the number one focus for our commercial team. We expect total unit revenue growth of 3.5 to 5.5 percent for the September quarter as we benefit from our commercial initiatives and recapture higher fuel costs.”

Smjernice za kvartal i cijelu godinu za septembar 2018

Delta očekuje solidan top-line rast, poboljšanje putanje troškova i povratak na povećanje marže.

Učinak troškova

Ukupni prilagođeni operativni troškovi za junski kvartal porasli su za 1.1 milijardu dolara u odnosu na kvartal prethodne godine, pri čemu je više od polovine povećanja uzrokovano višim cijenama goriva.

Adjusted fuel expense increased $578 million, or 33 percent, relative to June quarter 2017. Delta’s adjusted fuel price per gallon for the June quarter was $2.17, which includes $45 million of benefit from the refinery.

CASM-Ex increased 2.9 percent for the June 2018 quarter compared to the prior year period, a one point improvement from the March quarter. Cost pressures were driven by higher revenue-related costs and increased aircraft rent and depreciation associated with Delta’s fleet initiatives.

“Očekujemo da će se uzastopno poboljšanje trendova troškova nastaviti u drugoj polovini godine jer vidimo dodatne koristi od restrukturiranja naše flote, naših One Delta inicijativa i godišnje ubrzane amortizacije, kao i prethodnih ulaganja u naš proizvod,” rekao je Paul Jacobson, glavni finansijski direktor Delte. “Naša struktura troškova je bitna komponenta održivog učinka, a zadržavanjem rasta troškova ispod 2 posto za godinu, pozicioniramo kompaniju da poveća marže do kraja godine.”

Adjusted non-operating expense improved by $43 million versus the prior year, driven primarily by pension expense favorability. Adjusted tax expense declined $255 million for the June quarter primarily due to the reduction in Delta’s book tax rate from 34 percent to 23 percent.

Novčani tok i prinosi dioničara

Delta je tokom kvartala ostvarila 2.8 milijardi dolara operativnog gotovinskog toka i 1.4 milijarde dolara slobodnog novčanog toka, nakon ulaganja od 1.4 milijarde dolara u posao prvenstveno za kupovinu aviona i poboljšanja.

Za junski kvartal, Delta je vratila 813 miliona dolara akcionarima, što se sastoji od 600 miliona dolara otkupa akcija i 213 miliona dolara dividendi.

The Board of Directors declared a quarterly dividend of $0.35 per share, an increase of 15 percent over previous levels. This change will bring the total annualized dividend commitment to approximately $950 million, consistent with the company’s target of returning 20 to 25 percent of free cash flow to owners over the long-term. The September quarter dividend will be payable to shareholders of record as of the close of business on July 26, 2018, to be paid on August 16, 2018.

Strateški naglasci

U junskom kvartalu, Delta je postigla niz prekretnica u svojih pet ključnih strateških stubova.

Kultura i ljudi

• Accrued an additional $400 million in profit sharing and paid out $23 million in Shared Rewards as a testament to the outstanding performance made possible by Delta’s more than 80,000 employees around the world.

• Ranked No. 1 corporate blood donor by the American Red Cross for the most recent year at 11,085 units of blood from 214 Delta sponsored blood drives.

• Became a National Signature Partner of Junior Achievement’s 3DE program with a $2 million contribution over the next five years.

Operativna pouzdanost

• Delivered 58 days of zero system cancellations on a year-to-date basis, up 23 days from 2017.

• Achieved mainline on-time performance (A0) of 71.7 percent year-to-date, up 1.4 percent from the prior year.
Mreža i partnerstva

• Launched a joint venture with Korean Air on May 1, expanded reciprocal codeshare flying to more than 50 Korean Air-operated markets and 400 Delta-operated markets, and announced new service from Seattle to Osaka and Minneapolis/St. Paul to Seoul in partnership with Korean Air to begin in 2019.

• Continued Delta’s global expansion with the launch of new service including Los Angeles to Paris and Amsterdam; Indianapolis to Paris; and Atlanta to Lisbon. Delta also announced plans to begin nonstop flights between the United States and Mumbai, India, in 2019.

Iskustvo kupaca i lojalnost

• Debuted the first refreshed 777-200ER aircraft featuring the award-winning Delta One suite, the popular Delta Premium Select cabin and 9-abreast seating in the Main Cabin in addition to all new interior features and in-flight entertainment.

• Launched new uniforms for 64,000 Delta employees worldwide, created by acclaimed designer Zac Posen and built with Lands’ End quality. The designs embrace innovative fit, form and function, and carry Delta into the future in style.

• Opened the newly renovated Delta Sky Club at Ronald Reagan Washington National Airport (DCA) with an additional 1,800 square feet of space for guests to enjoy.

Investicioni bilans stanja

• Completed a $1.6 billion unsecured debt offering through a mix of three-, five-, and 10-year notes at a blended yield of 3.85 percent. The proceeds from this offering were used to refinance secured debt and will lower Delta’s overall interest expense by $20 million annually on a run-rate basis.

• Increased revolver capacity by $635 million, to a total of $3.1 billion in undrawn revolving credit facilities.