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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
Revenue by Segment
Premium tickets Revenue
CapyFin.comLoyalty program Revenue
CapyFin.comCargo Revenue
CapyFin.com 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