Delta Air Lines announces June quarter profit

Delta Air Lines reported that pre-tax income for the June 2014 quarter was $1.4bn, excluding special items, an increase of $593 million over the June 2013 quarter on a similar basis. Delta’s net income for the June 2014 quarter was $889m and its operating margin was 15.1%, excluding special items. On a GAAP basis which includes special items, Delta’s pre-tax income was $1.3bn, operating margin was 14.9% and net income was $801m. Results include $340m in profit sharing expense in recognition of Delta employees’ contributions toward achieving the company’s financial goals. Delta generated over $2bn of operating cash flow and $1.5bn of free cash flow during the June 2014 quarter. As of mid-July, the company has used its strong cash generation in 2014 to reduce its adjusted net debt below $8bn, contribute more than $900m of funding to its defined benefit pension plans, and return $550m to shareholders through dividends and share repurchases.