Delta Air Lines announces December 2015 quarter profit

Delta Air Lines reported financial results for the December 2015 quarter, including adjusted pre-tax income of US$1.45bn, a US$430m increase year over year. Adjusted net income was US$926m, up 51% from the December quarter of 2014. Delta’s operating revenue for the December quarter decreased 2%, or US$145m, due to US$160m in foreign currency pressures. Passenger unit revenues declined 1.6%, which includes approximately 2 points of impact from foreign currency. Delta’s debt reduction initiative continued to improve the company’s interest expense, producing US$35m in interest savings for the quarter compared to the same period in 2014.  Non-operating expense includes a US$75m loss for the write-off of Delta’s remaining cash holdings in Venezuela. Delta generated US$1.4bn of adjusted operating cash flow and US$300m of free cash flow during the quarter.  The company used this strong cash generation to reinvest US$1.1bn back into the business, including US$900m for aircraft acquisitions, fleet modifications and six slot pairs at London’s Heathrow airport.