Delta: Rise in 1Q2018 unit revenue driven by strong demand and improving yields

Delta Air Lines stated (03-Apr-2018) it expects 1Q2018 will deliver a 5% increase in total unit revenue, driven by strong demand and improving yields. All geographic entities are producing positive results and international unit revenues are outperforming domestic, the carrier added. Nonfuel unit costs for the quarter are expected to be up 4% year-on-year, driven by wage increases in Apr-2017 and accelerated depreciation due to aircraft retirements. Costs were further pressured by 0.5 points of additional weather-related expenses. Delta anticipates a pretax margin of 6.5% to 7.5%. The carrier returned up to USD540 million to shareholders through dividends and share repurchases. The average fuel price per gallon ranged from USD2.00 to USD2.05. [more - original PR]