Delta Reports Record Profits

Delta Air Lines reported another quarter of record profit, solid margin expansion and nearly $1 billion of free cash flow, according to Richard Anderson, Delta's chief executive officer. Anderson also said Delta expects a record fourth quarter of 2014 with an operating margin of 10-12 percent.

"For the full year, we expect a pre-tax profit in excess of $4 billion. We have the right foundation in place for an even stronger 2015," Anderson said.

Delta reported pre-tax income for the September 2014 quarter of $1.6 billion, excluding special items, an increase of $431 million over the September 2013 quarter. Delta's net income for the September 2014 quarter was $1.0 billion and its operating margin was 15.8 percent, excluding special items.

On a GAAP basis including special items, Delta's pre-tax income was $579 million, operating margin was 7.5 percent and net income was $357 million. Delta also said it generated $910 million of free cash flow during the September 2014 quarter. The company said it used its cash generation in the quarter to reduce its adjusted net debt to $7.4 billion and return $325 million to shareholders through dividends and share repurchases.

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