Shares Of Delta Air Lines Continue Trading Higher Following

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Delta Air Lines, Inc.
DALreported its fourth quarter results before the opening bell on Tuesday. The company said that it earned $1.18 per share on revenue of $9.502 billion. Wall Street analysts were expecting the company to earn $1.19 per share on $9.61 billion. Despite a top and bottom line beat, shares of Delta Air Lines were trading higher on Tuesday. The stock opened for trading at $45.80 and traded as low as $45.19 before gaining some buying momentum. Delta Air Lines noted that its currency was negatively impacted by $160 million in foreign exchange pressures. In addition, passenger unit revenues fell 1.6 percent, which includes approximately 2 points of impact from foreign currency rates. Adjusted fuel expense fell $726 million from the same quarter a year ago due to a 40 percent reduction in fuel prices. Settled hedge losses for the quarter were $336 million, including $60 million of early hedge settlements. By 11:40 AM ET, shares of Delta Air Lines were trading higher by more than 3 percent at $45.92. Delta Air Lines also reported that its pre-tax adjusted income of $1.45 billion marked a $430 million increase from the same quarter a year ago. Adjusted net income for the quarter also rose 51 percent from a year ago to $926 million. "The success of our network actions and commercial initiatives in 2015 allowed us to grow our top line and our unit revenue premium to the industry, while overcoming nearly $700 million of revenue pressure from foreign currency," said Ed Bastian , Delta's president. "Looking ahead, the overall demand environment remains solid. The breadth of our network scale allows us to focus our commercial efforts on those areas of the business with the best opportunity such as the domestic marketplace, while reducing our exposure in some weaker international regions. While we expect international volatility and currency pressures to result in unit revenue declines of 2.5 - 4.5 percent for the March quarter, we should see over 10 points of margin improvement given our capacity discipline in the face of a more than 50 percent decline in fuel prices."
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Posted In: EarningsNewsAir LinesAir Lines StockDelta Air LinesEd Bastianfuel costs
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