•
Dec 31, 2019
Delta Q4 2019 Earnings Report
Delta Air Lines reported strong Q4 2019 earnings, driven by revenue growth and operational performance.
Key Takeaways
Delta Air Lines reported a strong December quarter and full year 2019, with record profit sharing for employees and a positive outlook for the March quarter 2020.
December quarter 2019 pre-tax income was $1.4 billion, with net income at $1.1 billion and earnings per diluted share of $1.71.
Full year 2019 earnings per diluted share increased by nearly 30% over the prior year.
A record $1.6 billion in profit sharing was allocated for Delta's 90,000 employees.
Operating revenue for the December quarter improved by 7.2% or $768 million over the prior year.
Delta
Delta
Delta Revenue by Segment
Forward Guidance
Delta anticipates another year of strong results, with earnings per share of $6.75 to $7.75.
Positive Outlook
- Healthy demand for travel
- Growing brand preference
- Revenue growth of 5% to 7% expected in the March quarter
- Strong cash generation
- Consistent reinvestment in the business
Challenges Ahead
- Higher revenue- and capacity-related expenses
- Increased profit sharing expenses
- Higher pension expense
- Non-fuel unit costs expected to increase 2% to 3% for the March quarter and full year
- Increased investment in people, product, and services
Revenue & Expenses
Visualization of income flow from segment revenue to net income