Delta Air Lines (DAL) has reported 36.26 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $603 million, or $0.82 a share in the quarter, compared with $946 million, or $1.21 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $560 million, or $0.77 a share compared with $1,026 million or $1.32 a share, a year ago. Revenue during the quarter went down marginally by 1.11 percent to $9,148 million from $9,251 million in the previous year period. Gross margin for the quarter contracted 373 basis points over the previous year period to 55.62 percent. Total expenses were 88.49 percent of quarterly revenues, up from 83.35 percent for the same period last year. That has resulted in a contraction of 514 basis points in operating margin to 11.51 percent.
Operating income for the quarter was $1,053 million, compared with $1,540 million in the previous year period.
"Despite fuel price pressures, the Delta people once again delivered solid results across the board, with double digit operating margins, strong improvements in customer satisfaction, and progress on our international expansion with the closing of our Aeroméxico transaction," said Ed Bastian, Deltas chief executive officer. "Producing these results in our toughest quarter of the year shows not only how far weve come, but also that we have more opportunity in front of us to continue building a better airline for our employees, customers, and owners."
The company forecasts operating income to grow in the range of 17 percent to 19 percent for the second-quarter.
Operating cash flow turns negativeDelta Air Lines has spent $801 million cash to meet operating activities during the quarter as against cash inflow of $1,011 million in the last year period. The company has spent $1,734 million cash to meet investing activities during the quarter as against cash outgo of $601 million in the last year period.
Cash flow from financing activities was $1,680 million for the quarter as against cash outgo of $674 million in the last year period.
Cash and cash equivalents stood at $1,907 million as on Mar. 31, 2017, up 11.65 percent or $199 million from $1,708 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Delta Air Lines was negative $9,073 million on Mar. 31, 2017 compared with negative $8,802 million on Mar. 31, 2016. Current ratio was at 0.43 as on Mar. 31, 2017, down from 0.51 on Mar. 31, 2016.
Cash conversion cycle (CCC) was almost stable at 25 days for the quarter, when compared with the last year period. Days sales outstanding went down to 22 days for the quarter compared with 23 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the quarter compared with 17 days for the previous year period. At the same time, days payable outstanding went down to 56 days for the quarter from 66 for the same period last year.
Debt moves up
Delta Air Lines has witnessed an increase in total debt over the last one year. It stood at $9,227 million as on Mar. 31, 2017, up 9.18 percent or $776 million from $8,451 million on Mar. 31, 2016. Total debt was 17.93 percent of total assets as on Mar. 31, 2017, compared with 15.84 percent on Mar. 31, 2016. Debt to equity ratio was at 0.71 as on Mar. 31, 2017, down from 0.75 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
