Delta reports improved first quarter net income

Delta Air Lines reported financial results for the March 2016 quarter, including adjusted pre-tax income of US$1.56bn, a US$966m increase over March 2015 quarter. Adjusted net income was US$1.0bn or US$1.32 per diluted share. Delta’s operating revenue for the March quarter decreased 1.5%, or US$137m, driven by US$125m in foreign currency pressures and a US$5m impact from the recent events in Brussels. Passenger unit revenues declined 4.6%, including 2 points of impact from foreign currency, on a 2.7% increase in capacity. Delta generated US$1.35bn of adjusted operating cash flow and US$497m of free cash flow during the quarter. The company used this strong cash generation to invest US$871m into the business, including US$764m in fleet investments.