Delta Air Lines reports USD1.26bn in Q3 2016 net income

Delta Air Lines (NYSE: DAL) has reported USD1.259 billion in GAAP net income in the third quarter 2016, compared to 1,315 billion in the third quarter 2015, company said.

Adjusted pre-tax income for the third 2016 quarter was USD1.9 billion, a USD278 million decrease from the third quarter 2015. The technology outage and subsequent operational recovery Delta experienced over four days in early August reduced pre-tax income for the quarter by an estimated USD150 million.

Total passenger revenue for the third quarter 2016 was 10.483 billion, a decrease of 5.6 percent year-over-year.

Delta generated USD1.8 billion of adjusted operating cash flow and USD1.1 billion of free cash flow during the quarter. The company used this strong cash generation to invest USD680 million into the business for aircraft purchases and improvements, for facilities upgrades and to support its maintenance part-out initiatives.

For the September quarter, the company returned USD650 million to shareholders, comprised of USD150 million of dividends and USD500 million of share repurchases.

Atlanta-based Delta Air Lines serves nearly 180 million customers each year. Delta and the Delta Connection carriers offer service to 319 destinations in 57 countries on six continents.