Delta Air Lines is projecting a record $6 billion annual pre-tax profit despite “many challenges” faced in 2016.
The message came from chief executive Ed Bastian while hosting an annual investor day in New York.
Delta issued updated guidance for December on unit revenue – a measure of financial health closely watched by Wall Street – of a 3% decline, an improvement over previous guidance of a 3%-5% drop.
Unit revenues in the first quarter of 2017 are expected to be flat year-on-year basis, another improvement on previous forecasts.
Bastian said Delta’s projected $6 billion profit for 2016 was coming through operations and service excellence despite increased costs and a challenging pricing environment not seen in several years.
“While 2016 has been a strong year, there are certainly headwinds into ’17,” he cautioned.
President Glen Hauenstein revealed a noticeable increase in domestic revenue was seen immediately after the results of the US presidential election.
“It almost seemed like there was some pent up demand in the system,” he said.
Fare segmentation has been a key driver in boosting revenue, especially as Delta debuts the A350-900 next year with an all-suite Delta One cabin as well as Delta Premium Select.