Delta Airlines forecasts over $4bn revenue by 2014 ending
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IMAGE: Richard Anderson, CEO Delta Air Lines »
United States mega carrier, Delta Airlines, which also operates daily flight between Atlanta and Lagos, at the weekend, forecasts high pre-tax revenue in excess of $4 billion by the end of year 2014.
This is just as the airlines says it realised $1.6 billion pre-tax income for the month of September quarter.
Delta’s September 2014 income is an increase of $431 million over the September 2013 quarter on a similar basis.
The net income for the September 2014 quarter was $1 billion, or $1.20 per diluted share with operating margin at 15.8 percent.
According to Richard Anderson, Delta’s CEO, “while we have more work ahead of us to achieve our long-term financial goals, we expect a record fourth quarter of 2014, with an operating margin of 10 – 12 percent.
“For the full year (2014), we expect a pre-tax profit in excess of $4 billion. We have the right foundation in place for an even stronger 2015, proven strategies for Delta, and 80,000 Delta employees who are the very best in the industry. With another record profit, solid margin expansion and nearly $1 billion of free cash flow, Delta’s results are consistent with high-quality S&P 500 industrials.”
Also speaking on the results, Ed Bastian, Delta’s president, captured the Delta performance by saying that “for the December quarter, the overall revenue environment remains solid, with unit revenues expected to increase by 0-2 percent, and we are on track to produce another quarter of good top-line growth, margin expansion and free cash flow.
“Looking further ahead, our international network provides the largest opportunity for additional margin improvement, as we accelerate our Pacific network restructuring, recalibrate our transatlantic capacity levels, and reap the benefits of our investment in our Latin network,” Bastian said.
He said Delta Airlines had been generating a $910 million free cash flow in this September quarter, surpassing its 2013 record. This, according o him, translated into an adjustment of net debt to $7.4 billion and a return in dividends and share repurchases of $325 million to its shareholders.
Delta Airlines serves nearly 165 million customers each year.
With an industry-leading global network, Delta and the Delta Connection carriers offer service to 318 destinations in 57 countries on six continents.
Headquartered in Atlanta, Delta operates a mainline fleet of more than 700 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry’s leading trans-Atlantic joint venture with Air France-KLM and Alitalia as well as a newly formed joint venture with Virgin Atlantic.
Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with key hubs and markets including Amsterdam, Atlanta, Boston, Detroit, Los Angeles, Minneapolis/St. Paul, New York-JFK, New York-LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Seattle, and Tokyo-Narita.
Article Credit: Businessdayonline