Delta Airlines will expand its workforce by 12,000 over the next year as the airline expands its operations.
“We’re hiring pilots, we’re hiring flight attendants, we’re hiring ground staff. We’re hiring in all categories of the company,” CEO Ed Bastian said in an interview with CNBC. “We’re the process of hiring 6,000 people this year and at least a like amount next year.”
The carrier recently released its third-quarter financial results which showed that it has reaped the benefits of not flying the Boeing 737 MAX, which has been grounded since March after the second of two fatal crashes.
As a result, its adjusted pre-tax income increased $361 million, up 22% from the same period last year. Total adjusted revenue, which excludes refinery sales, grew 6.5% to $12.6 billion. Overall, total revenue and adjusted total revenue set a new quarterly record, as the company served a record 55.2 million passengers in the quarter.
Adjusted fuel expense decreased $249 million, down 10% when compared to the same period in 2018. Delta’s adjusted fuel price per gallon for the September quarter was $1.96, which included a $49 million benefit from the refinery.
“Our powerful brand and competitive strengths drove another quarter of great results for our people, customers and owners, Bastian said in a statement. "Our people bring our brand to life on every flight and I’m pleased to recognise their outstanding efforts with over $1 billion in profit sharing accrued so far this year.
“Demand for the Delta product remains healthy, positioning the company for a strong close to 2019 with expectations for more than 20% earnings growth, over $4 billion in free cash flow and a 5th year of pre-tax earnings over $5 billion.”
On September 26, Delta announced plans to enter into a strategic partnership with LATAM Airlines. Subject to customary conditions including regulatory approval, the company will invest $1.9 billion for up to 20% of the common shares of LATAM through a public tender offer at $16 per share, to be funded with newly issued debt and available cash.
In addition, Delta will invest $350 million to support the establishment of the strategic partnership, $150 million of which was paid in the latest quarter. Delta will also acquire four A350 aircraft from LATAM, and has agreed to assume LATAM’s commitment to purchase 10 additional A350 aircraft.
Delta expects that the transaction will be accretive to earnings per share over the next two years and that the transaction will not impact the company’s existing financial commitments to shareholders, including free cash flow and shareholder returns.