Delta 2016 net profit down 3% to US$4.4b
Delta Air Lines posted a 2016 net profit of US$4.4b, down 3% from net income of $4.5b in 2015, as higher labour costs drove a slight decrease in earnings. Delta’s full-year earnings report indicates the revenue environment remained sluggish in the US airline market in 2016, with the carrier’s revenue dropping 3% year-over-year to $33.8b. Costs for 2016 fell just 1% compared to 2015 to $32.7b as employee salaries rose 14% to just over $10b. Operating income in 2016 was just under $7b, down 11% from an operating profit of $7.8b in 2015. The labour cost rise was primarily driven by a new contract approved by Delta’s pilots in Q4. The airline’s Q4 outlay in salaries jumped 30% year-over-year and a retroactive pay raise to Jan 1, 2016 further increased full-year costs. <br/>
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Delta 2016 net profit down 3% to US$4.4b
Delta Air Lines posted a 2016 net profit of US$4.4b, down 3% from net income of $4.5b in 2015, as higher labour costs drove a slight decrease in earnings. Delta’s full-year earnings report indicates the revenue environment remained sluggish in the US airline market in 2016, with the carrier’s revenue dropping 3% year-over-year to $33.8b. Costs for 2016 fell just 1% compared to 2015 to $32.7b as employee salaries rose 14% to just over $10b. Operating income in 2016 was just under $7b, down 11% from an operating profit of $7.8b in 2015. The labour cost rise was primarily driven by a new contract approved by Delta’s pilots in Q4. The airline’s Q4 outlay in salaries jumped 30% year-over-year and a retroactive pay raise to Jan 1, 2016 further increased full-year costs. <br/>
