Delta Air Lines reported financial results for the June 2015 quarter, including adjusted net income1 of US$1.0bn up 22% from the June quarter of 2014. Delta’s operating revenue for the June quarter increased 1%, despite US$160m in foreign currency pressures which reduced unit revenues by approximately 2 points. Passenger unit revenues declined 4.6% on a 3.9% decline in yields. Delta saw solid progress with several of its revenue initiatives, including Branded Fares, which increased passenger revenues by US$56m, and its enhanced agreement with American Express, which produced an incremental US$60m in revenue. During the airline’s quarterly earnings call on Wednesday, July 15th, Delta’s CEO Richard Anderson also confirmed that the company has cancelled an order for 20 used Embraer E190 and 40 new Boeing 737-900ER aircraft after pilots rejected a tentative contract proposal. “Those orders will be cancelled,” CEO Richard Anderson said . The order required the ratification of the contract to proceed. The E190 aircraft were planned to enter the mainline fleet in the fourth quarter of 2016. The 737-900ERs, which were in addition to an existing order, were to be deployed as replacements for other narrowbody aircraft scheduled to retire through 2019.
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Delta Air Lines announces June quarter profit and confirms cancellation of aircraft order
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