Among the best fuel hedges, Delta is on the top lists. According to the analysts, the Atlanta-based company expects that the current market prices of fuel will benefit 2015 at a profit of $1.7 billion, and for the current quarter, it will raise its forecast for operating margin. As per the New York Stock Exchange on Thursday, the company shares as high as 3.7% to $47.94 record in early trading. The carrier announced on the same day that by next year, prices of fuel are expected to fall at least 70 cents per gallon at a range of $2.10-$2.20.
Since June, the prices of crude have fallen by 40 percent caused by the oversupply and the refusal of OPEC’s to cut down its ceiling output. David Fintzen, the analyst of Barclays Capital said that in 2015, the cost of fuel in U.S. airlines will decline by $10 billion. It has also been revealed by President Ed Bastian on Thursday during the investor conference that, the company is anticipating a pre-tax income next year with an amount of $5 billion, driven by lower costs of fuel, higher revenue and cost controls of non-fuel. Additionally, the company has raised its forecast on operating margin from 10-12% to 11.5-12.5% this December. According to Richard Anderson, the Chief Executive of the company, next year Delta is anticipating a return to shareholders an amount of $1.5 billion through dividends and share buybacks.