Delta Air Lines Inc. (NYSE: DAL) reported first-quarter 2016 results before markets opened Thursday. The airline posted adjusted quarterly earnings per share (EPS) of $1.32 on revenues of $9.25 billion. In the same period a year ago, Delta reported EPS of $0.45 on revenues of $9.39 billion. First-quarter results also compare to the consensus estimates for EPS of $1.30 on revenues of $9.27 billion.

On a GAAP basis, Delta’s EPS for the quarter totaled $1.21 and includes mark-to-market adjustments totaling $98 million related to fuel hedging. GAAP EPS in the first quarter of last year totaled $0.90.

Adjusted to include mark-to-market impacts, fuel cost averaged $1.36 a gallon, a drop of $0.49 a gallon sequentially and 56.5% year-over-year. The company’s refinery posted a net loss of $28 million in the quarter.

Operating revenues declined by 1.5% year over year. Mainline revenues rose 3.2%, but on a passenger unit basis mainline revenues were down 4.4%. Total passenger revenues dropped 2% and total passenger unit revenues fell 4.6%.

Ed Bastien, Delta’s incoming CEO, said:

We have started 2016 with tremendous momentum, generating over $1.5 billion in adjusted pre-tax income, delivering industry-leading operations including 49 days of perfect mainline completion factor for our customers, and reaching our goal of becoming an investment grade company.

The incoming president, Glen Hauenstein, added:

We are forecasting a unit revenue decline of 2.5 – 4.5 percent for the June quarter.  While this is an improvement over our March quarter performance, we are focused on getting unit revenues back to a positive trajectory and we will make adjustments to our fall capacity levels if we are not making sufficient progress over the coming months.

Other second-quarter estimates included an operating margin forecast of 21% to 23%, fuel prices in a range of $1.48 to $1.53 per gallon, costs per available seat mile up about 2%, and system capacity up 2% to 3%. Consensus analysts’ estimates call for EPS of $1.84 on revenues of $10.55 billion. Delta did not provide revenue or EPS estimates.

Shares traded up about 1.9% at $48.98 in Thursday’s premarket. The stock’s 52-week range is $34.61 to $52.77. Prior to this release, Thomson/Reuters had a consensus price target of $63.14 on the company’s shares.

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