Delta Air Lines on January 12, 2017 reported its financial results for the fourth quarter and full year 2016. Highlights of those results, including both GAAP and adjusted metrics, are below and incorporated here.
Adjusted pre-tax income for the fourth quarter 2016 was $923 million, a $524 million decrease from the fourth quarter 2015, primarily driven by the new pilot agreement. For the full year, adjusted pre-tax income increased 4 percent year over year to $6.1 billion.
Airbus issued this statement:
The first delivery of an A321 aircraft from the Airbus U.S. Manufacturing Facility to Delta Air Lines took place today, in Mobile, Alabama. On hand for the occasion were executives from Airbus and Delta Air Lines, a team of Delta employees from the airline’s Minneapolis-St. Paul station, and representatives of the more than 370 employees at the facility.
Delta already operates 137 A320 family aircraft and 40 A330 and have another 123 aircraft on order—including A320 family, A330 and A350 aircraft. Just this year, Delta placed its third A321 ceo order in three years.
Airbus announced its commitment to build a single-aisle assembly line in Mobile, Alabama in 2012, and less than one year later, broke ground on the $600 million facility. The ceremonial inauguration of the plant took place in September 2015. The aircraft delivered today is the 15th aircraft delivered from the Mobile facility.
Airbus anticipates delivering four aircraft per month from the Mobile plant by the end of 2017. The initial deliveries will all be A320 Family aircraft with the Current Engine Option (CEO), but will begin transitioning to New Engine Option (NEO) derivatives in late 2017.
Delta Air Lines will begin serving Havana, Cuba, this fall from New York-JFK, Atlanta and Miami as a result of today’s announcement by the U.S. Department of Transportation (DOT). Delta applauds and thanks the DOT for awarding the airline the ability to resume operating daily, nonstop scheduled service to the Caribbean island for the first time in almost 55 years.
All routes are subject to Cuban regulatory approval. Delta will begin selling seats to Havana this summer.
Delta inherited passenger service to Havana, Cuba, from its merger with Chicago and Southern Air Lines (C&S) on May 1, 1953, offering nonstop flights from New Orleans. Political instability and profitability issues ultimately led Delta to suspend service on December 1, 1961.
From 2002-2004 Delta operated charters between New York-JFK and Havana. In October 2011, Delta began operating up to a dozen charter flights to Havana per week with daily service from Miami and weekly service from Atlanta and New York-JFK. It operated almost 500 trips before suspending service on December 29, 2012. Most recently, in 2015, Delta performed three ad hoc charter flights including one that carried the Minnesota Orchestra back to Cuba for its first performance on the island in more than 85 years.
Copyright Photo: Delta Air Lines Boeing 737-832 WL N3765 (msn 30819) JFK (Stephen Tornblom). Image: 921237.
ALPA released this statement:
Delta Air Line pilots, represented by the Air Line Pilots Association, Int’l (ALPA), conducted informational picketing at the Delta Shareholders Meeting, in NYC, to raise the sense of urgency in concluding the ongoing negotiations. It is time for Delta management and the Board of Directors to recognize the rising market for pilots and bring these negotiations to a timely conclusion.
Five months have passed since the contract’s amendable date; fifteen months since negotiations began and the Delta pilots are still awaiting a new agreement. ALPA and Delta jointly filed for mediation with the National Mediation Board on March 31, 2016. The union is committed to negotiations, and our goal remains a fair and reasonable contract this summer.
Delta Air Lines is highly profitable and remarkably successful. For the first quarter of 2016, Delta recorded a historic pre-tax income of $1.56 billion—nearly triple from the first quarter of 2015, the previous historic high for Delta. Delta’s recently released 8-K filing confirms it is time to reward the pilots for their commitment to the Company’s success. Delta has earned the “investment grade” designation; it is time that Delta recognized its pilots are “investment grade” and compensate them appropriately.
“All other stakeholders – management, the other employees, investors – have now been rewarded . . . except for the pilots. It is time for the Delta Board of Directors to acknowledge our investments in the corporation, address the rising market for pilots, ensure Delta will continue to be able to attract the best of the best and take the necessary steps to recognize the Delta pilots as equal business partners as we move forward together to write the next chapter in Delta’s story,” stated Captain John Malone, MEC chairman, in a recent Chairman’s Letter.
ALPA and Delta will continue negotiations under the guidance of the National Mediation Board, with the next mediation session scheduled later this month.
Delta Air Lines has announced its Brussels-Atlanta service will resume from March 2017, doubling its network from Belgium. The U.S. airline currently operates a daily year-round service between Brussels and New York-JFK.
The service, which will begin on March 26, 2017, will be the only nonstop flight between the Belgian capital and Atlanta and will operate daily throughout the summer.
All flights from Belgium are operated in conjunction with joint venture partners Air France, KLM and Alitalia.
The route will be operated using a 225-seat Boeing 767-300 aircraft.
Copyright Photo: Delta Air Lines Boeing 767-332 ER WL N1608 (msn 30573) LAX (Michael B. Ing). Image: 926310.
Copyright Photo: Delta Air Lines Boeing 757-232 WL N664DN (msn 25012) FLL (Jay Selman). Image: 402856.
Delta Air Lines is planning to start nonstop service connecting its Seattle/Tacoma hub with Fort Lauderdale/Hollywood starting on December 16, 2016. The new route will operate weekly with Boeing 757-200 equipment according to Airline Route.
In other news, Delta is dropping daily service to Tokyo (Narita) from Los Angeles on October 28, 2016.
Delta Air Lines (Atlanta) will continue operating five daily flights between Dallas Love Field and Atlanta.
U.S. District Court Judge Ed Kinkeade ruled Friday (January 8) the Atlanta-based airline can continue to serve customers at the Dallas airport while gate allocations it is seeking are decided in lower courts.
Delta responded with this comment:
“Delta is pleased that the Court has confirmed our right to serve Love Field,” the airline said Friday. “We look forward to bringing the people of Dallas the benefit of Delta’s industry leading product and global network at Love Field.”
Delta has fought a lengthy legal battle to continue operating at Dallas Love Field so customers have more choice at an airport where Southwest Airlines operates 18 of 20 available gates. Love Field is smaller than Dallas-Fort Worth International Airport but more convenient to downtown.