Transportation

Delta Air Lines Earnings Hit by Fuel Hedging Costs

Paul Ausick

Published: January 19, 2016 8:10 am

Last Updated: January 13, 2020 2:54 pm

Delta Air Lines Inc. (NYSE: DAL) reported fourth-quarter and full-year 2015 results before markets opened Tuesday. The airlines reported diluted quarterly earnings per share (EPS) of $1.25 on revenues of $9.5 billion. In the same period a year ago, Delta reported EPS of $0.78 on revenues of $9.65 billion. Fourth-quarter results also compare to the consensus estimates for EPS of $1.19 on revenues of $9.61 billion.

For the full year, Delta reported GAAP EPS of $5.63 on revenues of $40.7 billion, compared with 2014 EPS of $3.31 on revenues of $40.36 billion. Analysts were looking for EPS of $4.64 on revenues of $40.82 billion.

Delta’s adjusted EPS for the quarter totaled $1.18 and includes mark-to-market adjustments totaling $1.29 billion, including fuel hedging and restructuring costs, plus the company’s equity investment in Virgin Atlantic.

Adjusted to include mark-to-market impacts, fuel averaged $1.85 a gallon, a drop of $0.77 a gallon year over year in the fourth quarter. For the full year, fuel expense fell by about $2.3 billion and per gallon costs fell by $0.64.

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