Lower Fuel Costs Lift Delta to Profit
The Atlanta-based carrier reported a profit of $980 million, compared with a loss of $712 million a year earlier, for the final quarter of 2015.
For the full year, Delta earned $4.5 billion on revenue of $40.7 billion.
The airline said it paid employees $1.5 billion in profit sharing and gave its shareholders $360 million in dividends. In addition, it spent $2.2 billion to buy back its own stock, thereby increasing the value.
Passenger revenue decreased by 1% to $8.125 billion from $8.235 billion for the three months ended December 2015 compared to the same period in 2014.
Delta’s cargo revenue in the quarter dropped 21% to $193 million from $243 million a year earlier.
Delta said it expects to pay between $1.20 to $1.25 per gallon of jet fuel in the first quarter, a significantly lower number than the $1.85 it paid in Q4 2015. The airline said it had saved nearly $2.8 billion, almost 65%, on fuel, compared with late 2014, noting it now spends less on fuel than on labor.
The airline said “Our 2015 performance was a record for Delta on all fronts.”
(Photo: Accura Media Group)