Delta Air Lines, Inc. (NYSE:DAL)’s shares were down after the company raised per-gallon fuel price projections. The airline lowered its projections for one of the key growth metrics along with lower operating growth margins for the quarter.
Delta Air Lines, Inc. (NYSE:DAL) lost 5% of its share prices after an announcement made by the Chief Financial Officer, Paul A. Jacobsen, stating that the jet fuel prices didn’t go down as per the expectations despite of the falling oil prices. In addition to it, the airline raised its per-gallon fuel price projections to $2.90 and $2.95 for the current quarter. Further, the company reduced its passenger unit revenue forecast by 1% along with a 1 percent decrease in its operating margin growth for the quarter.
Delta Air Lines, Inc. (NYSE:DAL) gave excellent financial results for the second quarter 2014 with $1.4 billion in pre-tax income and $889 million as the net income for the quarter. Operating margin for the quarter was 15.1% and one of the biggest achievements includes operating cash flows in excess of $2 billion.
The Chief Executive Officer, Richard Anderson, of Delta Air Lines, Inc. (NYSE:DAL) said,
“Delta’s performance this quarter, with 9 percent top line growth, more than 4 points of margin expansion and $1.5 billion of free cash flow, shows the financial strength and resilience of our company. We expect our September quarter performance will be even stronger, as we expand our operating margins to 15-17% and further improve our profitability.”
The company raised revenue for each seat flown per mile by 2% in August 2014 despite of the disturbed flight schedule among several international issues. In addition to it, the company reported an average of 87.6% passengers per flight as compared to 87.3% in the same period last year.
This article has been written by Prakash Pandey.