Delta’s profit soars on low fuel costs

The results compare with Delta’s $659 million in net income for 2014, which included a $712 million net loss for the fourth quarter of 2014.

Delta CEO Richard Anderson in a written statement called the company’s 2015 performance “a record for Delta on all fronts.”

President Ed Bastian said during a conference call with investors that the airline’s Atlanta hub “performed well” despite growth by competitors.

Even in a record financial year, Delta laid off some administrative employees in 2015 and reduced its formula for future profit sharing, while also increasing pay.

While fuel costs have been low, international volatility and other weakness in revenue are putting pressure on Delta’s results. For the fourth quarter, Delta saw a 2 percent decline in operating revenue to $9.5 billion.

Delta has seen weakness in key markets including Brazil, and slowed its growth in Paris and Brussels about a week after the Paris terrorist attacks last year, according to executives.

In a memo to employees, Delta chief financial officer Paul Jacobson wrote that “it is important to remember that our industry remains volatile and faces ever-present challenges, including growing economic uncertainty in some of our important international markets… we will continue to run Delta as a lean, nimble enterprise that can be stable and profitable in good times and bad.”

The airline expects a 2.5 percent to 4.5 percent decline in passenger unit revenue in the first quarter of 2016, as it increases flying by 2 to 3 percent.

Delta said it could save $3 billion from lower fuel prices in 2016 to improve its results, along with cost cuts and other moves.