How Will Delta Air Lines Utilize Its Cash Flows?

Delta Air Lines (NYSE:DAL) cash flows from operations have almost doubled over the last two years due to the effect of plummeting crude oil prices on the company’s expenses. Consequently, the airline increased its capital spending to revamp its existing fleet and add more fuel-efficient planes, although by a far lower percentage than the other players in the market. In addition, it paid down its long-term obligations to create a leaner balance sheet and hopes to cut it further to $4 billion in 2020. Further, the carrier returned over $3,500 million to its shareholders over the last three years in the form of share repurchases, one of the highest in the industry. Going forward, the company expects the growth in cash flow from operations to slow down due to the rising oil prices, while its capital expenditure continues the upward trajectory due to Delta’s narrow-body fleet replacement program. Further, the carrier has authorized a $5 billion share repurchase program to compensate its shareholders with the benefits from cost-savings.

Have more questions about Delta Air Lines (NYSE:DAL)? See the links below:

• Delta Airlines Re-Fleeting Program: How Will It Help?
• Why Has Trefis Lowered Delta’s Price Estimate From $51 To $44 Per Share?
• Delta Q2’16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues
• Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2’16
• Delta’s Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q’16
• What Should We Expect From Delta’s 1Q’16 Results?
• How Did The Legacy Carriers Perform Operationally In January?
• Why Did Delta’s Operating Margin Soar In 2015?
• Delta Air Lines: The Year 2015 In Review
• How Will Delta’s Revenue And EBITDA Grow Between 2015 and 2018?
• How Has Delta’s Revenue And EBITDA Changed Over The Last Five Years
• What Is Delta’s Revenue And EBITDA Brekdown?