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 January 5, 2016 - 9:00 AM EST
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Delta Reports Financial and Operating Performance for December 2015

ATLANTA, Jan. 5, 2016 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today reported financial and operating performance for December 2015.

Delta Air Lines and the Delta Connection carriers offer service to nearly 370 destinations on six continents. For more information visit news.delta.com.

Consolidated passenger unit revenue (PRASM) for the month of December declined 5.0% year over year. Results for the month included a 2 point headwind from calendar timing of the Thanksgiving holiday and 2 points of pressure from foreign exchange.

In an Investor Update issued this morning, Delta announced that it expects its operating margin to be 16.5% - 17.5% and its unit revenue to decline approximately 1.5% for the December quarter.

The company's financial and operating performance is detailed below.    

Preliminary Financial and Operating Results



December consolidated PRASM change year over year

(5.0)%

December mainline completion factor

99.75%

December on-time performance (preliminary DOT A14)

83.6%

Delta Air Lines serves nearly 180 million customers each year. Delta was named to FORTUNE magazine's top 50 World's Most Admired Companies in addition to being named the most admired airline for the fourth time in five years. Additionally, Delta has ranked No.1 in the Business Travel News Annual Airline survey for an unprecedented five consecutive years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 328 destinations in 57 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 800 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia as well as a joint venture with Virgin Atlantic. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with key hubs and markets including Amsterdam, Atlanta, Boston, Detroit, Los Angeles, Minneapolis/St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Delta has invested billions of dollars in airport facilities, global products and services, and technology to enhance the customer experience in the air and on the ground. Additional information is available on the Delta News Hub, as well as delta.com, Twitter @DeltaNewsHub, Google.com/+Delta, Facebook.com/delta and Delta's blog takingoff.delta.com.

Forward Looking Statements

Statements in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the cost of aircraft fuel; the availability of aircraft fuel; the impact of rebalancing our hedge portfolio, recording mark-to-market adjustments or posting collateral in connection with our fuel hedge contracts; the possible effects of accidents involving our aircraft; the restrictions that financial covenants in our financing agreements will have on our financial and business operations; labor issues; interruptions or disruptions in service at one of our hub or gateway airports; disruptions or security breaches of our information technology infrastructure; our dependence on technology in our operations; the effects of weather, natural disasters and seasonality on our business; the effects of an extended disruption in services provided by third party regional carriers; failure or inability of insurance to cover a significant liability at Monroe's Trainer refinery; the impact of environmental regulation on the Trainer refinery, including costs related to renewable fuel standard regulations; our ability to retain management and key employees; competitive conditions in the airline industry; the effects of extensive government regulation on our business; the sensitivity of the airline industry to prolonged periods of stagnant or weak economic conditions; the effects of terrorist attacks or geopolitical conflict; and the effects of the rapid spread of contagious illnesses.  

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2014.  Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of January 5, 2016, and which we have no current intention to update.

Non-GAAP Reconciliation

Delta sometimes uses information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Under the U.S. Securities and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The tables below show reconciliations of non-GAAP financial measures used in this release to the most directly comparable GAAP financial measures.

Operating Margin, adjusted for special items

Delta adjusts for the following items to determine operating margin, adjusted for special items, for the reasons described below:

Mark-to-market ("MTM") adjustments and settlements. MTM adjustments are defined as fair value changes recorded in periods other than the settlement period. Such fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period. Settlements represent cash received or paid on hedge contracts settled during the period. These items adjust fuel expense to show the economic impact of hedging, including cash received or paid on hedge contracts during the period. Adjusting for these items allows investors to better understand and analyze our core operational performance in the periods shown.

Refinery Sales. Delta's refinery segment provides jet fuel to the airline segment from its own production and from jet fuel obtained through agreements with third parties. Activities of the refinery segment are primarily for the benefit of the airline. However, from time to time, the refinery sells fuel by-products to third parties. These sales are recorded gross within other revenue and other operating expense. We believe adjusting for refinery sales allows investors to better understand and analyze the impact of fuel cost on our results in the periods shown.





(Projected)





December Quarter 2015

Operating margin



17.0% to 18.4%

Adjusted for:




    MTM adjustments and settlements

(0.7)% to (1.1)%

    Refinery sales



0.2%

Operating margin, adjusted


16.5% to 17.5%

 

 




Monthly Traffic Results (a)


Year to Date Traffic Results (a)



































Dec 2015


Dec 2014


Change


Dec 2015


Dec 2014


Change

















RPMs (000):















Domestic

10,195,539


9,726,356


4.8%


126,291,315


120,210,984


5.1%




Delta Mainline

8,499,782


7,997,057


6.3%


105,452,359


98,844,466


6.7%




Regional

1,695,757


1,729,299


(1.9%)


20,838,956


21,366,518


(2.5%)



International

6,183,709


6,389,310


(3.2%)


83,319,480


82,714,169


0.7%




Latin America

1,687,316


1,644,306


2.6%


18,983,928


18,061,691


5.1%




Delta Mainline

1,640,461


1,607,676


2.0%


18,566,966


17,690,081


5.0%




       Regional

46,855


36,630


27.9%


416,962


371,610


12.2%




Atlantic

2,691,650


2,796,877


(3.8%)


40,451,502


40,204,580


0.6%




Pacific

1,804,743


1,948,127


(7.4%)


23,884,050


24,447,898


(2.3%)



Total System

16,379,248


16,115,666


1.6%


209,610,795


202,925,153


3.3%
































ASMs (000):















Domestic

11,980,818


11,627,095


3.0%


146,893,820


141,128,195


4.1%




Delta Mainline

9,882,013


9,400,441


5.1%


121,093,793


114,179,785


6.1%




Regional

2,098,805


2,226,654


(5.7%)


25,800,027


26,948,410


(4.3%)



International

7,422,952


7,632,314


(2.7%)


99,864,705


98,548,212


1.3%




Latin America

2,048,070


1,996,325


2.6%


22,944,067


21,725,290


5.6%




Delta Mainline

1,988,823


1,948,517


2.1%


22,413,220


21,229,683


5.6%




       Regional

59,248


47,808


23.9%


530,847


495,607


7.1%




Atlantic

3,297,431


3,342,655


(1.4%)


49,117,993


47,565,990


3.3%




Pacific

2,077,451


2,293,334


(9.4%)


27,802,644


29,256,932


(5.0%)



Total System

19,403,771


19,259,409


0.7%


246,758,525


239,676,407


3.0%
































Load Factor:















Domestic

85.1%


83.7%


1.4

pts

86.0%


85.2%


0.8

pts



Delta Mainline

86.0%


85.1%


0.9

pts

87.1%


86.6%


0.5

pts



Regional

80.8%


77.7%


3.1

pts

80.8%


79.3%


1.5

pts


International

83.3%


83.7%


(0.4)

pts

83.4%


83.9%


(0.5)

pts



Latin America

82.4%


82.4%


0.0

pts

82.7%


83.1%


(0.4)

pts



Delta Mainline

82.5%


82.5%


0.0

pts

82.8%


83.3%


(0.5)

pts



       Regional

79.1%


76.6%


2.5

pts

78.5%


75.0%


3.5

pts



Atlantic

81.6%


83.7%


(2.1)

pts

82.4%


84.5%


(2.1)

pts



Pacific

86.9%


84.9%


2.0

pts

85.9%


83.6%


2.3

pts


Total System

84.4%


83.7%


0.7

pts

84.9%


84.7%


0.2

pts
















Mainline Completion Factor

99.8%


99.9%


(0.1)

pts






















Passengers Boarded

14,256,852


13,675,728


4.2%


179,382,874


171,358,504


4.7%
































Cargo Ton Miles (000):

170,810


187,550


(8.9%)


2,190,248


2,357,121


(7.1%)

















aResults include flights operated under contract carrier arrangements




















 

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/delta-reports-financial-and-operating-performance-for-december-2015-300199283.html

SOURCE Delta Air Lines


Source: PR Newswire (January 5, 2016 - 9:00 AM EST)

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