Delta Air Lines net income $558 million
Delta's net income for 2013 was $2.7 billion, excluding special items, a $1.1 billion increase over 2012. GAAP net income was $8.5 billion, or $9.89 per diluted share, for the December 2013 quarter and $10.5 billion for 2013. These results include an $8.0 billion non-cash gain associated with the reversal of the company's tax valuation allowance.
2013 results include $506 million in profit sharing expense, including $119 million in the December quarter, recognizing Delta employees' contributions toward meeting the company's financial goals.
Delta generated nearly $5 billion of operating cash flow and $2.1 billion of free cash flow in 2013, allowing the company to reduce its adjusted net debt at the end of 2013 to $9.4 billion, contribute an incremental $250 million above required funding to its defined benefit pension plans, and return $350 million to shareholders through a combination of $100 million of dividends and $250 million of share repurchases.
Delta's operating revenue improved 6 percent, or $474 million, in the December 2013 quarter compared to the December 2012 quarter. Traffic increased 2 percent on a 2.9 percent increase in capacity.
Passenger revenue increased 6.1 percent, or $451 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 3 percent year over year with a 4.0 percent improvement in yield. Cargo revenue decreased 1 percent, or $3 million, as higher freight volumes partially offset declining freight yields. Other revenue increased 2.8 percent, or $26 million, driven by higher SkyMiles revenue. ■