Good morning, ladies and gentlemen, and welcome to the Delta Air Lines First Quarter 2015 Financial Results Conference Call. My name is Sherlon and I will be your coordinator. [Operator Instructions] As a reminder, today's conference is being recorded. I would now like to turn the call over to Jill Sullivan Greer, Managing Director of Investor Relations.

Thanks Sherlon. Good morning everyone and thanks for joining us. Here in Atlanta today we have Richard Anderson our CEO, Ed Bastian our President, and Paul Jacobson, our CFO, and we have the remainder of the leadership team here in the room with us for Q&A. Richard will open the call, Ed will then address our financial and revenue performance, and Paul will conclude with a review of our cost performance and cash flows. To get in as many questions as possible during the Q&A, please limit yourself to one question and a brief follow up. Today’s discussion does contain forward-looking statements that represent our beliefs or expectations about future events. All forward-looking statements involve risks and uncertainties that could cause the actual results to differ materially from the forward-looking statements. Some of the factors that may cause such differences are described in Delta’s SEC filings. We’ll also discuss non-GAAP financial measures. All results exclude special items unless otherwise noted. And you can find the reconciliation of our non-GAAP measures on the Investor Relations page at ir.delta.com. And with that, I will turn the call over to Richard.

Thanks Jill. This morning we reported the best first quarter in Delta’s history producing solid top line growth, margin expansion and substantial free cash flow. Our pre-tax earnings grew 34% from last year to $594 million despite $300 million from early hedge settlements in the quarter. We earned $0.45 per share versus a consensus of $0.44. We grew our top line revenues by 5%, increased our operating margin by 1.0% to 8.8% and generated a return on invested capital of 22% for the last 12 months. Our strong cash generation continued with 1.1 billion of operating cash flow and north of $500 million of free cash flow in the first quarter. We contributed 900 million to our pension plans, maintained net debt levels of just over $7 billion and returned $500 million to shareholders in dividends and buybacks. We continue to run by far the industry's best operation. In the March quarter we delivered 98.6 completion factor that had a lot of tough weather days in it but we did have 25 days with zero mainline cancellations. Our mainline on-time rate improved 3.1 points to 83.4%. This operational performance is contributing to solid increases in customer satisfaction, we have achieved all time highs in our Net Promoter scores and our customer complain rate has decreased by 23% so far this year. These outstanding results were made possible by the dedication of our employees who work hard everyday to provide an industry leading customer experience and outstanding returns to our shareholders. Looking forward the business on the whole is performing quite well, while the strong dollar is creating a $600 million headwind for our international revenues, it is also a factor in keeping fuel prices down which will contribute over $2 billion in gross savings year-on-year in 2015. We are looking…

Thank you, Mr. Anderson, and good morning, everyone. We delivered a record March quarter with pretax income increasing over 30% to $594 million, despite a $300 million early hedge settlement. Our net income was $372 million or $0.45 per share versus consensus of $0.44. We expanded our operating margin by a point to 8.8% which includes the impact of the early out of quarter hedge settlements, which cost us roughly three points of margin. These results are in line with the initial margin guide we gave in January. The quarter was obviously impacted by our $1.1 billion in hedge losses, thus to give you a better sense of the core performance of the business. End market fuel prices our margin for the quarter is 17.8% among the best in the industry and provides a good go-forward perspective on our margin expectations given our hedge losses will be largely behind us as of July 1. I want to thank the great Delta people for their dedication and determination that made these record results possible. We continue to grow the topline which will be up 5% to $9.4 billion against a back drop of roughly 45% in lower market fuel prices and $105 million in currency headwinds. Corporate revenues increased 3% despite pressure from currencies, with strength in the Trans-Atlantic driven by our joint venture with Virgin Atlantic and from the financial services industry both up double-digits in the March quarter. Our recent survey shows corporate travel managers continue to be optimistic about the remainder of the year with roughly 85% of respondents anticipating they will maintain or increase spending over the balance of this year. We also saw good traction with our ancillary revenues. Merchandising revenues including branded fares, first-class upsell and preferred seating grew by 27% and contributed an incremental…

Thank you, Ed. Strong cost control is a highlight again this quarter and was a key driver of our strong margin expansion we realized before early hedge settlements. Total operating expenses increased by $356 million driven largely by higher volumes and investments in our product and people, as well as by higher profit-sharing expense which was up 40% versus last year. Non-fuel CASM declined 1.4% on a 5% capacity increase driven by up-gauging initiatives, lower maintenance expense due to the 50 seat retirements and other productivity improvement efforts. FX also benefited non-fuel CASM by about a point. Moving on to fuel. Our total fuel expense increased slightly as lower market prices were offset by higher consumption at our hedge losses. Our all-in fuel price was $2.93 per gallon down from $3.03 in the same period last year. The early settlements added about $0.33 per gallon for the quarter. The refinery made an $86 million profit this quarter versus a $41 million loss in the same period last year. The improvement was driven by lower group costs driven by an increase in North American consumption, a continued favorable crack spread environment and increased throughput. Over the last four quarters, the refinery has produced a cumulative profit of over $220 million. We expect that to continue to build in 2Q with a projected profit of approximately $80 million. As Richard mentioned and as we disclosed previously, we took steps in the first quarter to restructure our second half 2015 hedge book in order to balance our exposure while still retaining some level of longer term upside protection. In February, we took an advantage of the 20% spike in forward curves to settle about a third of our second half 2015 hedges for approximately $300 million. We also extended a similar portion of…

Thanks, Paul. Sherlon, we're now ready for the Q&A portion of the call with the analysts, so if you could give instructions on how to get into the queue.

[Operator Instructions] We'll have our first question from Darryl Genovesi with UBS.

We'll go next to Julie Yates, Credit Suisse.

We'll go next to Andrew Didora Bank of America.

We’ll go next to Mike Linenberg, Deutsche Bank

We’ll go next to Jamie Baker, JPMorgan.

We’ll go next to William Greene, Morgan Stanley.

We’ll go next to Helane Becker with Cowen & Company.

We'll go next to Duane Pfennigwerth, Evercore ISI.

That will come from Dan McKenzie, Buckingham Research.

[Operator Instructions] We'll go first to Jeffery Dastin, Thomas Reuters.

We'll go next to Edward Russell, Flight Global.

We'll go next to Ted Reed, The Street.

We'll go next to Susan Carey, Wall Street Journal.

Okay. With that we will conclude our call today. Thanks everyone for joining and listening.