Delta Air Lines have reported financial results for the December quarter and full year 2019 and provided its outlook for the March quarter 2020.
December Quarter Financial Highlights:
- Adjusted earnings per share of $1.70, a 31% increase year over year; above guidance of $1.20 to $1.50 on stronger revenue, lower fuel and a nine-cent net gain related to the unwinding of the GOL relationship
- Total revenue grew to $11.4 billion, up 7% over prior year when prior year period is adjusted for sale of DAL Global Services (DGS)
- Total unit revenue (TRASM), adjusted, increased 2.4%, exceeding expectations on strong holiday travel demand
- Non-fuel operating expense on a unit basis (CASM-Ex) up 4.4% compared to the prior year period, in line with the company’s expectations of 4% to 5%Full Year Financial Highlights:
- Adjusted earnings per share of $7.31, a 30% increase year over year
- Total revenue increased to a record $47 billion, up 7.5% when prior year period is adjusted for third-party refinery sales and the sale of DGS
- Total expense increased 3.9% with CASM-Ex up 2%, in line with the company’s guidance and long-term cost targets
- Delta’s 90,000 employees will share a record $1.6 billion profit sharing payout on Feb. 14
- Generated $8.4 billion of operating cash flow and $4.2 billion of free cash flow
- Returned $3 billion to shareholders through dividends and share repurchases
“2019 was a truly outstanding year on all fronts – the best in Delta’s history operationally, financially and for our customers. Our people, and their commitment to bringing best-in-class travel experiences to our 200 million customers, are the foundation for our success. I’m pleased to recognise their outstanding performance with a record $1.6 billion in profit sharing for 2019,” said Ed Bastian, Delta’s chief executive officer. “As we enter 2020, demand for travel is healthy and our brand preference is growing, positioning Delta to deliver another year of strong results, including earnings per share of $6.75 to $7.75.”
