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Delta reported a record profit for the second quarter and will discuss its financial expectations during a webcast at 10 a.m. ET.
Here are a few key terms Delta people should be aware of while listening to CEO Richard Anderson, President Ed Bastian and Paul Jacobson, Delta’s Executive Vice President and Chief Financial Officer:
1. Pre-Tax Income. Delta’s earnings after all operating expenses, including interest and depreciation, have been deducted from total sales or revenues, but before taxes have been subtracted.
2. Total Passenger Revenue. The amount earned from a paying customer, including tickets paid using SkyMiles. PRASM, or passenger revenue per available seat mile, is the airline equivalent of unit revenue and is calculated by dividing passenger revenue by total available seat miles. The term is typically presented in cents per mile.
3. Cost Per Available Seat Mile (CASM). Often referred to as ‘unit costs,‘ it is a reflection of expenses calculated on an individual seat mile basis (operating expenses / total available seat miles = CASM). The term is typically presented in cents per mile. 
4. Adjusted Net Debt. A figure of the airline’s overall debt situation, including the value of Delta’s liabilities and debts with its cash and other similar liquid assets.
5. Free Cash Flow. A measure of financial performance calculated as operating cash flow minus capital expenditures. It represents the cash Delta is able to generate after the funding required to maintain or put additional investment in the business.
6. Operating Margin. Typically presented as a percentage, operating margin is a measurement of profitability and indicates how much of each dollar of revenue is left over after operating costs and expenses are taken out. A large operating margin indicates the health of the airline.