Delta Airlines to Report Profit in Third Quarter Financial Results

0

Delta Airlines has announced profit gain in the third quarter financial results of the year. Recently, the Delta Airlines has revealed its financial results in the month of September 2015. The financial results included the details of net income which is adjusted to 1.4 billion dollars or can be termed in diluted shares as 1.74 dollars per share. From this report, it is clear that 45 percent hike is seen in the third quarter financial results, recorded in the month of September, compared to previous year financial results. Richard Anderson was the chief executive officer of Delta Airlines. He said that, escaping from the volatility of currencies and uncertainty in the economies aiding for declines in revenue, we have managed well in maintaining operational margins with a hike of 5 percent reporting final value as 21 percent.

 At the same time, there is noticeable growth seen in earnings with 45 percent hike, which in turn increased cash flow by 1.4 billion dollars in the third quarter of the year. At the same time, demand reported same but there is decline seen in fuel prices in a materialistic way. He said that they are expecting similar performance till December i.e., the final quarter of the year, enabled with 16-18 percent operational margins with an expectation of 40 percent revenue growth per share. He continued giving credit to all the 80,000 employees of Delta Airlines for their hard work who have contributed for gaining the profit of 1 billion dollars of profit shares, earned so far in this year. He said the main reason behind this profit record was the consistency maintained in their team providing ultimate operations and services to partners globally along with the production of strong returns of shareholders.

It is known from a source that the operating revenue of Delta Airlines has reduced by 0.6 percent which means 71 million dollars. This includes 235 million dollars of pressure in terms of foreign currencies. While the revenues of passenger units have decreased by 4.9 percent, which is 2.5 percent impact in terms of foreign currencies. Ed Bastian was the president of Delta Airlines. He said that their initiatives have driven exclusive benefits for their airlines as they have extended their premium revenues towards the industry, which in turn strengthened their hubs in Los Angeles, New York and Seattle. At the same time, all these initiatives helped us to extend our network world wide increasing our partnerships with multiple organizations.

He added that even we are at good growth, declines in fuel prices and foreign currencies have put on pressure on their performance and revenue. He told that they are keeping their system capacity in a flat position for the quarter of December, in order to take action aiming for the improvement of revenue we record. So that only 2.5 to 4.5 percent declines for the quarter will be recorded which include 2 percent impact from foreign currency. Paul Jacobson was the chief financial officer of Delta Airlines. He said that they are continued to benefit from fuel price declines, which is clearly depicted by the 1 billion plus profit wind at the end of the quarter and with current prices, they are expected to benefit 750 million dollars in the quarter of December. Keeping in concern about the current volatile market and price conditions, they are planning to improve their costs and revenues at all parts of the business, and are thinking twice before investing, in order to choose right parts of investment where they can sustain.

Share.

About Author

Leave A Reply