Delta Air Lines expects to produce over USD5bn in pre-tax income in 2015

Delta Air Lines president Ed Bastian stated (11-Dec-2014) the carrier plans to improve on on all aspects of its financial performance in 2015 as "a solid revenue environment and lower fuel prices", combined with Delta-specific initiatives, are expected to produce over USD5 billion in pre-tax income. Mr Bastian said the carrier completed a record year in 2014, with USD4.5 billion of pre-tax earnings, over USD3 billion of free cash flow and a 20% return on invested capital. The carrier's hedge book allows for an estimated 65% downward participation in 2015, according to Delta, while "maintaining upside protection." The carrier's hedge book is expected to produce USD1.2 billion loss for 2015 at current market prices due to the recent sharp decline in fuel prices. Delta stated it has full downside participation in 2016. [more - original PR]