Delta Air Lines finishes a solid 2014 ready to face currency headwinds and macro pricing pressure

Delta Air Lines recorded a strong financial performance for 4Q2014 and YE2014 - excluding special items - driven by continued strength in its domestic entity and a solid cost performance as non-fuel unit costs remained essentially flat throughout 2014.

Delta is starting 2015 with headwinds due to the appreciation of the USD against some weaker currencies, but remains confident of meeting its stated financial targets that include ROIC of more than 18% and operating margins of 11% to 14%.

An anticipated significant USD2 billion in fuel savings during 2015 will also help blunt some of the effects from currency weakness; but Delta is stressing that it will use the savings to slash debt, and pending board approval, possibly increase shareholder rewards.