Delta Air Lines Inc. (NYSE: DAL) reported fourth-quarter and full-year 2015 results before markets opened Tuesday. The airlines reported diluted quarterly earnings per share (EPS) of $1.25 on revenues of $9.5 billion. In the same period a year ago, Delta reported EPS of $0.78 on revenues of $9.65 billion. Fourth-quarter results also compare to the consensus estimates for EPS of $1.19 on revenues of $9.61 billion.

For the full year, Delta reported GAAP EPS of $5.63 on revenues of $40.7 billion, compared with 2014 EPS of $3.31 on revenues of $40.36 billion. Analysts were looking for EPS of $4.64 on revenues of $40.82 billion.

Delta’s adjusted EPS for the quarter totaled $1.18 and includes mark-to-market adjustments totaling $1.29 billion, including fuel hedging and restructuring costs, plus the company’s equity investment in Virgin Atlantic.

Adjusted to include mark-to-market impacts, fuel averaged $1.85 a gallon, a drop of $0.77 a gallon year over year in the fourth quarter. For the full year, fuel expense fell by about $2.3 billion and per gallon costs fell by $0.64.

The less-good news for Delta is that operating revenues declined by 1% on its mainline flights and 5% on its regional carriers in the fourth quarter. Consolidated domestic revenues increased 1.8%. Passenger unit revenues fell 1.4% domestically and 1.6% including international routes. Operating revenues were hurt by a $160 million foreign exchange deficit.

The company’s president said:

As we look ahead to 2016, we have a significant opportunity to improve our performance even further. With over $3 billion in potential savings from lower fuel prices and numerous commercial, operational and cost initiatives already in place, we expect to again perform in the top tier of the S&P Industrials on earnings growth, margins, and cash flows this year despite global economic challenges.

For the first quarter of 2016, Delta expects fuel prices in the range of $1.20 to $1.25 per gallon. Seat capacity is expected to rise 2% to 3% compared with the first quarter of 2015. Passenger unit revenue is expected to come in 2.5% to 4.5% lower than in the same period last year. The consensus analysts’ estimates call for EPS of $1.21 on revenues of $9.25 billion. Delta did not provide revenues or EPS estimates.

Shares traded up about 2.1% at $45.45 in premarket trading Tuesday, in a 52-week range of $34.61 to $52.77. Prior to the release, Thomson/Reuters had a consensus price target of $66.62 on the company’s shares.

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