Delta Air Lines maintains its financial edge with a strong 4Q2013, but its peers are still not safe

Delta Air Lines lived up to its stated expectations for 4Q2013, executing a strong performance in profitability and cash flow generation. Building on that momentum its outlook for the near term looks favourable, buoyed by strong corporate demand in the US domestic market.

Despite some lingering cost creep and a still-weak performance from its oil refining business, Delta is poised to continue its momentum in 2014 as the correlation between revenue and fuel charges, with revenues expected to continue to rise even thought oil prices for the moment are falling.

Echoing previous comments about sustaining its current favourable financial momentum, Delta stresses it has no intention of resting on its laurels - and believes its long terms goals of a 10%-12% annual operating margin and operating cash flow of USD5 billion are well within its reach.