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Delta Air Lines Q1 pre-tax income down $104 million

Staff Writer |
Delta Air Lines reported financial results for the first quarter quarter 2018.

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Adjusted pre-tax income for the March 2018 quarter was $676 million, a $104 million decrease from the March 2017 quarter, as record revenues were offset by higher fuel prices and other increased costs including a $44 million impact from severe winter weather.

Delta’s adjusted operating revenue of $9.8 billion for the March quarter improved 8 percent, or $715 million versus the prior year.

This revenue result marks a March quarter record for the company, and was driven by improvements across Delta’s business, including a 23 percent increase in cargo revenue and a $78 million increase in total loyalty revenue.

Delta’s Branded Fares initiative drove $421 million in premium up-sell revenue in the period, a 23 percent increase from the prior year.

Total unit revenues excluding refinery sales (TRASM) increased 5.0 percent during the period, with foreign currency contributing just over 0.5 points of benefit.

This marks the fourth consecutive quarter of year-over-year growth, with all geographic regions delivering positive results.

Total adjusted operating expenses for the March quarter increased $817 million, driven by higher fuel prices, investments in employee wages and profit sharing, and higher depreciation expense.

Adjusted fuel expense increased $317 million, or 20 percent relative to March quarter 2017, as the year- over-year increase in market fuel prices was tempered by the lapping of prior year hedge losses and improved fuel efficiency.

Delta’s adjusted fuel price per gallon for the March quarter was $2.01, which includes $0.05 of benefit from the refinery.

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