FINCHANNEL

The FINANCIAL — Delta on September 5 reported operating performance for August 2017. The company carried 17.6 million passengers across our broad global network in the month.

Monthly highlights include:

Breaking ground on the $4 billion, 37-gate facility at New York’s LaGuardia Airport to transform this vital hub into a completely rebuilt and unified 21st-century airport;

Announcing new nonstop service between New York-JFK and Lagos as well as between Orlando and Amsterdam, both to begin in March 2018; and

Declaring Delta’s 17th consecutive quarterly dividend, which was increased to $0.305 per share. This represents the fourth consecutive annual 50 percent increase since the dividend was initiated in 2013.

In addition, the company is providing an update to its September quarter financial outlook:

Delta now expects passenger unit revenue growth to be 2 – 3 percent, as the recovery in domestic close-in yields has been slower than anticipated.   

Delta’s all-in fuel price for the quarter is now expected to be in the range of $1.68 – $1.73, driven by the increase in market prices that began in late July.

Delta expects the normalized cost per available seat mile excluding fuel to be up approximately 2 percent.

Delta expects a September quarter operating margin of 16.5 – 17.5 percent compared to its previous guidance of 18-20 percent.  Higher fuel prices and close-in yield softness combined resulted in close to 2 points of margin pressure for the quarter.