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Delta's Q4 cargo revenue drops 13pc, but 2019 total revenue up

DELTA Air Line's operating revenue for cargo operations declined by 13 per cent in the fourth quarter to US$187 million and to $753 million for the full year compared to the same periods in 2018

Delta's Q4 cargo revenue drops 13pc, but 2019 total revenue up

DELTA Air Line's operating revenue for cargo operations declined by 13 per cent in the fourth quarter to US$187 million and to $753 million for the full year compared to the same periods in 2018

19 January 2020 - 19:00

DELTA Air Line's operating revenue for cargo operations declined by 13 per cent in the fourth quarter to US$187 million and to $753 million for the full year compared to the same periods in 2018.

The carrier saw a seven per cent boost in revenue to $11.4 billion, adjusted for the sale of a former unit, the unwinding of the codeshare partnership with Brazilian carrier Gol following the new joint venture with LATAM Airlines, and $315 million in lower fuel costs, FreightWaves, New York reported.



Strong holiday travel helped increase total unit revenue by 2.4 per cent on an adjusted basis. Nonfuel operating expenses rose by 4.4 per cent year on year.



On a full-year basis, Delta achieved record revenue of $47 billion, up 7.5 per cent, excluding sales from its refinery.



Total expense were up 3.9 per cent with cost-per-available-seat mile up two per cent. The company generated $8.4 billion of operating cash flow and $4.2 billion of free cash flow.



Delta's first-quarter 2020 outlook calls for another five to seven per cent increase in total revenue. Officials said they expect to equal free cash flow in 2020, which would put the airline on track to deliver a three-year cumulative free cash flow of more than $10 billion.



'Investments in reliability, product and service, airports and technology are reshaping customer perception and driving record satisfaction scores and increasing brand preference,' said president Glen Hauenstein in a statement.



'We delivered $47 billion in revenue in 2019, a more than $3 billion increase when adjusted over prior year, while sustaining a revenue premium to the industry of more than 110 per cent. Demand trends remain healthy and we expect momentum to continue in 2020.'



The company invested $4.5 billion into the business in 2019, including $954 million in the December quarter. The capital expenditure helped support the delivery of 88 new aircraft during the year, including the new Airbus A220-100 regional jet and the A330-900neo.


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