Delta Air Lines Reports Financial Results for December 2013
OREANDA-NEWS. Delta Air Lines (NYSE:DAL) today reported financial results for the December 2013 quarter. Key points include:
Delta's net income for the December 2013 quarter was USD 558 million, or USD 0.65 per diluted share, excluding special items1.
Delta's net income for 2013 was USD 2.7 billion, excluding special items, a USD 1.1 billion increase over 2012.
Delta's GAAP net income was USD 8.5 billion, or USD 9.89 per diluted share, for the December 2013 quarter and USD 10.5 billion for 2013. These results include an USD 8.0 billion non-cash gain associated with the reversal of the company's tax valuation allowance.
2013 results include USD 506 million in profit sharing expense, including USD 119 million in the December quarter, recognizing Delta employees' contributions toward meeting the company's financial goals.
Delta generated nearly USD 5 billion of operating cash flow and USD 2.1 billion of free cash flow in 2013, allowing the company to reduce its adjusted net debt at the end of 2013 to USD 9.4 billion, contribute an incremental USD 250 million above required funding to its defined benefit pension plans, and return USD 350 million to shareholders through a combination of USD 100 million of dividends and USD 250 million of share repurchases.
"Our December quarter profit caps off a successful year for Delta with strong profitability and margin expansion, industry-leading operations and significant improvements in customer satisfaction. Across the board this was an outstanding year and all credit for these achievements goes to the 78,000 Delta employees worldwide," said Richard Anderson, Delta's chief executive officer. "We have a solid set of initiatives in place to improve our financial results, operational performance and customer satisfaction levels beyond 2013's record levels and remain focused on being the best airline for our employees, customers and shareholders."
Revenue Environment
Delta's operating revenue improved 6 percent, or USD 474 million, in the December 2013 quarter compared to the December 2012 quarter. Traffic increased 2.0 percent on a 2.9 percent increase in capacity.
Passenger revenue increased 6.1 percent, or USD 451 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 3.0 percent year over year with a 4.0 percent improvement in yield.
Cargo revenue decreased 1.0 percent, or USD 3 million, as higher freight volumes partially offset declining freight yields.
Other revenue increased 2.8 percent, or USD 26 million, driven by higher SkyMiles revenue.
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