Delta Air Lines has recorded impressive financial results for the March 2015 quarter.<\/p>\n
Delta\u2019s adjusted pre-tax income for the March 2015 quarter was $594 million, an increase of $150 million over the March 2014 quarter on a similar basis.<\/p>\n
Delta\u2019s adjusted net income for the March 2015 quarter was $372 million, or $0.45 per diluted share, and its adjusted operating margin was 8.8 percent.<\/p>\n
On a GAAP basis, Delta\u2019s March quarter pre-tax income was $1.2 billion, operating margin was 14.9 percent and net income was $746 million, or $0.90 per share.<\/p>\n
Results include $136 million in profit sharing expense, recognizing Delta employees\u2019 contributions toward meeting the company\u2019s financial goals.<\/p>\n
The company used its strong cash generation in the quarter to return $500 million to shareholders through dividends and share repurchases and to make $904 million in pension contributions.<\/p>\n
\u201cDelta\u2019s business is performing well, producing the best March quarter, both operationally and financially, in Delta\u2019s history,\u201d said Richard Anderson, Delta\u2019s chief executive officer.<\/p>\n
\u201cWhile the strong dollar is creating headwinds with international revenues, it also contributes to the lower fuel prices which will offset those headwinds with over $2 billion in fuel savings this year.\u00a0 We are looking at June quarter operating margins of 16-18 percent with over $1.5 billion of free cash flow\u2014these record results and cash flows show that the strong dollar is a net positive for Delta.\u201d<\/p>\n
Capacity Actions in Light of Strong Dollar and Lower Energy Prices<\/strong><\/p>\n To address currency headwinds, Delta plans to reduce its international capacity by 3 percent year over year for the winter schedule.<\/p>\n These international reductions, combined with 2 percent domestic growth, will result in flat system capacity for the December quarter.<\/p>\n Capacity adjustments will be focused on markets that have been most affected by the strong dollar and markets where demand has been negatively impacted by the decline in oil prices.<\/p>\n Key actions for the December quarter will include a 15-20 percent reduction in service from Japan, a 15 percent reduction to Brazil, a 15-20 percent reduction to Africa, India and the Middle East, and suspension of service to Moscow for the winter season.<\/p>\n