Delta Air Lines (Atlanta) continues to add more nonstop routes from its building Seattle-Tacoma International Airport (SEA) hub in competition with its codeshare partner Alaska Airlines (Seattle/Tacoma). Delta will commence nonstop SeaTac – Orlando Boeing 737-800 flights starting on December 19. Alaska already operates on the route.
Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 737-832 N372DA (msn 29620) arrives in Las Vegas.
Delta Air Lines (Atlanta) is adding two new Colombian routes from its Atlanta hub. Starting on December 19, per Airline Route, the carrier will launch a new route from Atlanta to Cartagena (three days a week with Boeing 737-800s) and Atlanta to Medellin (daily flights with Boeing 737-700s).
In addition, the airline is also commencing Boeing 717 service from Los Angeles to Sacramento on June 4.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-832 N3758Y (msn 30814) climbs away from the runway at Los Angeles International Airport.
Delta Air Lines aircraft slide show (current livery only):
Delta Air Lines (Atlanta) continues to trim routes, frequencies and downsize aircraft for its routes radiating from its dwindling Cincinnati hub. According to The Cincinnati Enquirer, the airline is trimming frequencies of its routes to Baltimore/Washington, Charlotte, Chicago (O’Hare), Philadelphia, Pittsburgh and St. Louis. The carrier is also ending all service between Cincinnati-Northern Kentucky International Airport (CVG) and Madison, WI.
Delta Air Lines (Atlanta) will begin Saturday seasonal service between Los Angeles and Managua on June 5, 2015. The additional service will complement the current daily nonstop service from the Nicaraguan capital city to Atlanta, and will operate using a 160-seat Boeing 737-800 aircraft.
With flights to 13 cities including San José, Costa Rica; Liberia, Costa Rica; San Salvador; Guatemala City; Belize City; Cancún; Ixtapa/Zihuatanejo; Manzanillo; Guadalajara; Puerto Vallarta, Mazatlan, Monterrey; and now Managua, Delta serves more destinations in Latin America from Los Angeles than any carrier.
From Los Angeles, Delta currently operates 154 peak-day departures to 48 destinations and has continued expanding both international and domestic service over the past few months, including London-Heathrow in October; Dallas* and Austin, Texas* in November; and Vancouver, Canada* in December.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-832 N377DA (msn 29625) departs from Los Angeles International Airport.
Delta Air Lines aircraft slide show (current livery):
Delta Air Lines (Atlanta) has added nonstop service from Phoenix to Boston, Los Angeles and Seattle/Tacoma and has put larger aircraft on select flights from Seattle/Tacoma to Phoenix to accommodate customers traveling to and from the pro football championship game (Super Bowl).
The temporary service will operate as follows:
Flights 8789 to Los Angeles and 8799 to Seattle/Tacoma will operate using specially configured aircraft with all first or business class seats. Along with the added service, Delta has increased the size of the aircraft on one regularly scheduled flight from Phoenix to Seattle/Tacoma on February 2 from a regional jet to a 160-seat Boeing 737-800.
Delta regularly operates five peak-day flights to Phoenix from its Seattle/Tacoma hub, and two of those flights will be operated using larger aircraft to accommodate more fans traveling to the game on Friday, January 30. Delta also operates five peak-day flights from Los Angeles to Phoenix. Some service may be operated by Delta Connection carriers SkyWest Airlines and Compass Airlines.
Copyright Photo: Bruce Drum/AirlinersGallery.com. Boeing 737-832 N399DA (msn 30379) approaches the runway at Las Vegas.
Delta Air Lines aircraft slide show (current livery):
Delta Air Lines (Atlanta) today reported financial results for the fourth quarter. Key points include:
Delta’s pre-tax income for the December 2014 quarter was $1.0 billion, excluding special items1, an increase of $474 million over the December 2013 quarter on a similar basis. Delta’s net income for the December 2014 quarter was $649 million, or $0.78 per diluted share, and its operating margin was 12.6 percent, excluding special items.
For the full year 2014, Delta’s pre-tax income, excluding special items, was $4.5 billion, a $1.9 billion increase over 2013. Delta’s net income for the year was $2.8 billion with an operating margin of 13.1 percent, excluding special items.
On a GAAP basis including special items, Delta’s December quarter pre-tax loss was $1.1 billion, operating margin was -8.6 percent and net loss was $712 million, or $0.86 per share. On a GAAP basis including special items, Delta’s 2014 pre-tax income was $1.1 billion, operating margin was 5.5 percent and net income was $659 million.
2014 results include $1.1 billion in profit sharing expense, including $262 million in the December quarter, recognizing Delta employees’ contributions toward meeting the company’s financial goals.
The company’s strong cash generation allowed it to accelerate its capital deployment plans by reducing its adjusted net debt2 to $7.3 billion, contributing an incremental $250 million above required funding to its defined benefit pension plans, and returning $1.35 billion to shareholders through a combination of $251 million of dividends and $1.1 billion of share repurchases in 2014.
“Our 2014 performance – an industry-leading operation, superior customer service, and a 70 percent increase in profits – shows that Delta is focused on delivering growing value for its employees, customers and investors,” said Richard Anderson, Delta’s chief executive officer. “As we begin 2015, we have a significant opportunity from lower fuel prices, which will drive more than $2 billion in fuel savings over 2014. Through our capacity discipline, pricing our product to demand, and the fuel savings, we expect to drive double-digit earnings growth, along with increased free cash flow and a higher return on invested capital in the upcoming year.”
Delta recorded a $1.4 billion special items charge, net of taxes, in the December 2014 quarter, including:
a $1.2 billion charge for mark-to-market adjustments on fuel hedges settling in future periods;
a $75 million charge for mark-to-market adjustments on hedges owned by Virgin Atlantic;
a $74 million charge for fleet, facilities, and other items, associated with Delta’s domestic fleet restructuring initiative as well as the write-down of certain facilities in Concourse C of Detroit Airport; and
a $29 million gain related to an insurance settlement.
Delta recorded a net $7.9 billion special items gain in the December 2013 quarter, including:
an $8.0 billion non-cash gain associated with the reversal of Delta’s tax valuation allowance;
a $92 million mark-to-market gain on fuel hedges; and
a $160 million charge for facilities, fleet and other, including charges associated with Delta’s domestic fleet restructuring.
“Delta Airlines Inc. (DAL) announced fourth quarter earnings on Tuesday before the market open. The airline reported better-than-expected non-GAAP earnings of $0.78 per share, helped by falling fuel prices. This beat analysts’ consensus earnings estimate of $0.77.
Total operating revenue reached $9.65 billion, slightly topping the $9.58 consensus estimate.
DAL’s stock price rose well above $47.00 in pre-market trading after having closed on Friday at 45.84.
Overall, DAL continues to trade within a long-term bullish trend. 2014 was a dramatically bullish year for the stock, as price rose by 84% from its 2014 opening price of $27.26 up to the record high of $50.16 that was reached on the very last day of 2014. This was despite a major price correction that occurred throughout September and the first half of October.
The new year has thus far shown somewhat of a different picture. From the very beginning of 2015, DAL has declined consistently from its 2014 high in a substantial pullback move.
Prior to Tuesday’s earnings report, price action had been approaching key support around the $44.00 price level, slightly under the 50-day moving average. The positive earnings report, however, has prompted a significant rebound from that level, with a clear upside resistance target around the $50.00 resistance area once again. With a continued bullish bias, especially after Tuesday’s earnings beat, the uptrend for DAL should be poised to continue its march up towards its $55.00 price objective.”
Delta Air Lines (Atlanta) is adding another new route from its growing Seattle/Tacoma hub. SEA-Puerto Vallarta, Mexico service will be initiated on December 20 with Boeing 737-800s. The route will be operated on a weekly basis (three days a week during the Christmas-New Year holidays) per Airline Route.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-832 N390DA (msn 30536) climbs away from the runway at Los Angeles International Airport.
Delta Air Lines (Atlanta) will fly weekly New York (JFK)-St. Lucia flights from December 20, 2014 through April 4, 2015. The winter seasonal flights will be operated with Boeing 737-800s according to Airline Route.
Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 737-832 N378DA (msn 30265) arrives in New York (JFK).