- Delta has announced its September quarter 2019 GAAP pre-tax income of USD 1.9 billion, net income of USD 1.5 billion and earnings per diluted share of USD 2.31 on record total revenue of USD 12.6 billion. Adjusted pre-tax income increased USD 361 million, or 22% YoY.
- Its September quarter 2019 adjusted pre-tax income is USD 2 billion, adjusted net income is USD 1.5 billion and adjusted earnings per diluted share is USD 2.32, a 29% YoY increase.
- Delta has returned USD 468 million to shareholders through dividends and share repurchases.
PRESS RELEASE
Board of Directors declares company’s 26th consecutive quarterly dividend.
Delta Air Lines (NYSE:DAL) today reported financial results for the September quarter 2019 and provided its outlook for the December quarter 2019. Highlights of the September quarter 2019 results, including both GAAP and adjusted metrics, start on page four and are incorporated here.
September Quarter Financial Highlights:
- Adjusted pre-tax income increased $361 million, or 22 percent versus prior year.
- Adjusted earnings per share were $2.32, a 29 percent increase year over year; Earnings per share and adjusted earnings per share reflect 6.5 percent top-line growth, 2.5 points of operating margin expansion and $1.4 billion of free cash flow.
- Total adjusted revenue, which excludes refinery sales, grew 6.5 percent to $12.6 billion; Total revenue and adjusted total revenue are a new quarterly record, as the company served a record 55.2 million passengers in the quarter.
- Total unit revenue, adjusted, increased 2.5 percent; Total unit revenue and total unit revenue adjusted increases were driven by healthy leisure and corporate demand and an approximate one point benefit from the amended American Express agreement.
- Consolidated operating cost per available seat mile (“CASM”) decreased 2.1 percent compared to the September 2018 quarter, primarily due to lower fuel costs and higher capacity. Non-fuel unit cost (CASM-Ex) increased 2.4 percent compared to the prior year period, driven by employee costs, record passenger volumes and weather.
- Returned $468 million to shareholders, comprised of $208 million of share repurchases and $260 million in dividends.
- Generated $7.5 billion of operating cash flow and $4.0 billion of free cash flow on a year-to-date basis, after investing $3.5 billion into the business, primarily for aircraft purchases and modifications.
“Our powerful brand and competitive strengths drove another quarter of great results for our people, customers and owners. Our people bring our brand to life on every flight and I’m pleased to recognize their outstanding efforts with over $1 billion in profit sharing accrued so far this year,” said Ed Bastian, Delta’s Chief Executive Officer. “Demand for the Delta product remains healthy, positioning the company for a strong close to 2019 with expectations for more than 20% earnings growth, over $4 billion in free cash flow and a 5th year of pre-tax earnings over $5 billion.”
December Quarter 2019 Outlook:
For the December quarter, Delta expects to deliver solid top-line growth and operating margin expansion. Year-over-year pre-tax margin is impacted by the one-time $91 million gain from the sale of the DAL Global Services business in the December 2018 quarter.
