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Free Post Earnings Research Report: Delta’s Revenue Jumped 8.3%; Adjusted EPS Climbed 17.1%

LONDON, UK / ACCESSWIRE / January 19, 2018 / Active-Investors.com has just released a free earnings report on Delta Air Lines, Inc. (NYSE: DAL) ("Delta"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DAL. Delta reported its fourth quarter and fiscal 2017 operating and financial results on January 11, 2018. The No. 2 US carrier reported better than expected revenue and earnings results. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Delta Air Lines most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the three months ended December 31, 2017, Delta's operating revenue of $10.25 billion jumped 8.3% compared to operating revenue of $9.46 billion. The Company's total unit revenues excluding refinery sales increased 4.4% for the reported quarter. Delta's reported numbers topped analysts' estimates of $10.16 billion.

During Q4 2017, Delta's Passenger revenue totaled $8.50 billion compared to $7.97 billion in Q4 2016, up 6.6% including $200 million from Delta's Branded Fares initiatives. The Company's Passenger unit revenues increased 4.2%, including 0.5 points from one-time revenue adjustments, on 2.3% higher capacity.

For Q4 2017, Delta's Cargo revenue advanced 14.4% to $200 million on a y-o-y basis, driven by higher volumes and yields. The Company's Other revenue improved 17.9% to $1.54 billion on a y-o-y basis, primarily due to higher loyalty revenue and a $150 million increase in third-party refinery sales.

Delta's adjusted pre-tax income for Q4 2017 was $1.09 billion, up 14% compared to $952 million in Q4 2016, despite a $60 million impact from the combination of December's power outage at Atlanta's Hartsfield-Jackson Airport and Winter Storm Benji.

Delta reported net income of $572 million, or $0.80 per share, for Q4 2017 compared to $622 million, or $0.84 per share, in Q4 2016. On an adjusted basis, the Company posted net income of $681 million, or $0.96 per share, versus $604 million, or $0.82 per share, in the year earlier same quarter. Delta's earnings exceeded Wall Street's estimates of $0.88 per share.

Operating Results

During Q4 2017, Delta's Revenue passenger miles grew 2.4% to 51.18 million on a y-o-y basis. The Company's capacity, or available seat miles, expanded 2.3% to 60.06 million. In the reported quarter, Delta's Load factor increased 10 basis points compared to 85.2% in the year ago same period.

For Q4 2017, Delta's Passenger revenue per available seat mile (PRASM) was up 4.2% to $0.1415, while the Company's passenger mile yield grew 4.1% to $0.1661. Delta's total revenues per available seat miles gained 4.4% to $0.1665.

During Q4 2017, Delta's adjusted fuel expense increased 23% to $1.85 billion, as market fuel prices increased throughout the reported quarter. The Company's adjusted fuel price per gallon for the reported quarter was $1.93, which includes $0.03 of benefit from the refinery.

For Q4 2017, Delta's Cost per Available Seat Mile-excluding fuel and profit sharing (CASM-Ex) decreased 0.4% to $11.20, driven by the impact of Delta's pilot agreement ratified in Q4 2016. The pilot agreement resulted in $475 million of expense in the prior year's corresponding period and included a $380 million retroactive payment for the first three quarters of 2016. The Company's normalized CASM-Ex4 including profit sharing increased 5.6% on a y-o-y basis, driven by continued investments in Delta's people, product and operation as well as pressure from accelerated depreciation due to aircraft retirements.

Cash Flow, Shareholder Returns, and Adjusted Net Debt

Delta generated $1.7 billion of adjusted operating cash flow and $435 million of free cash flow during Q4 2017. The Company invested $850 million into the business for aircraft purchases and improvements, facilities upgrades and technology. Delta also spent $450 million to purchase its 10% stake in Air France-KLM in the reported quarter.

Delta generated $6.8 billion of adjusted operating cash flow and $2.0 billion of free cash flow for the full year 2017, and invested $3.6 billion into the business and $1.2 billion in equity stakes in partner airlines.

Delta's adjusted net debt at the end of Q4 2017 was $8.8 billion, up $2.6 billion versus the prior year largely as a result of a $2.5 billion increase in unsecured debt, primarily issued to accelerate pension funding. The Company's unfunded pension liability declined by $3.6 billion from the end of 2016 to $7.0 billion at the end of 2017.

For Q4 2017, Delta returned $541 million to shareholders, comprised of $325 million of share repurchases and $216 million in dividends. For the full year 2017, the Company returned $2.4 billion to shareholders comprised of $1.7 billion of share repurchases and $731 million in dividends.

Stock Performance Snapshot

January 18, 2018 - At Thursday's closing bell, Delta Air Lines' stock marginally declined 0.45%, ending the trading session at $59.45.

Volume traded for the day: 5.71 million shares.

Stock performance in the last month – up 5.97%; previous three-month period – up 12.68%; past twelve-month period – up 18.19%; and year-to-date – up 6.16%

After yesterday's close, Delta Air Lines' market cap was at $42.57 billion.

Price to Earnings (P/E) ratio was at 11.93.

The stock has a dividend yield of 2.05%.

The stock is part of the Services sector, categorized under the Major Airlines industry. This sector was up 0.1% at the end of the session.

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