Delta expects operating margin of 9.5% to 10.5% in 4Q2016, positive unit revenues in Latin America

Delta Air Lines stated (02-Dec-2016) it expects an operating margin of 9.5% to 10.5% in 4Q2016, including the FY2016 impact of the new pilot contract which was ratified on 01-Dec-2016. Non-fuel unit costs, including profit sharing for the quarter, are expected to be up approximately 10% year-over-year. Delta's new pilot contract includes a retroactive adjustment to 01-Jan-2016, which will be accrued in 4Q2016. The total expense impact in 4Q2016 is USD475 million, of which USD380 million relates to the retroactive periods. Consolidated passenger unit revenue (PRASM) for Nov-2016 declined 1.0% year over year, as the carrier continued to see stabilisation of close-in domestic yields and positive unit revenues in Latin America. For 4Q2016, Delta still expects unit revenue to decline in the 3% to 5% range, as well as a fuel price of USD1.55 to USD1.60. [more - original PR]