Delta delivered its highest quarterly revenue and profitability in the airline’s history, with strong June quarter operating cash flow enabling accelerated debt reduction.
Delivered highest quarterly revenue and profitability in Delta’s history
Strong June quarter operating cash flow enabled accelerated debt reduction
Expect record September quarter revenue, mid-teens operating margin and EPS of $2.20 – $2.50
Raising full year EPS outlook to $6 – $7 and reiterating free cash flow guide of $3 billion
Delta Air Lines (NYSE: DAL) today reported financial results for the June quarter and provided its outlook for the September quarter 2023. Highlights of the June quarter, including both GAAP and adjusted metrics, are on page five and incorporated here.
“Thanks to the incredible work of our entire team, Delta is delivering for our customers by providing strong operational performance and best in class service during this busy summer period. With this performance, we generated record revenue and profitability in the June quarter. Our people are the best professionals in the industry, and I’m proud to recognize their achievements with $667 million in the first half toward next year’s profit-sharing payment,” said Ed Bastian, Delta’s Chief Executive Officer.
“Consumer demand for air travel remains robust. Against this constructive backdrop, we are increasing our 2023 earnings guidance to $6 to $7 per share and reiterating our recently updated outlook for $3 billion of free cash flow.”
JUNE QUARTER 2023 GAAP FINANCIAL RESULTS
Record operating revenue of $15.6 billion
Record operating income of $2.5 billion with an operating margin of 16.0 percent
Pre-tax income of $2.3 billion with a pre-tax margin of 14.9 percent
Earnings per share of $2.84
Operating cash flow of $2.6 billion
Payments on debt and finance lease obligations of $1.8 billion
Total debt and finance lease obligations of $20.2 billion at quarter end
JUNE QUARTER 2023 ADJUSTED FINANCIAL RESULTS
Record operating revenue of $14.6 billion, 19 percent higher than the June quarter 2022
Record operating income of $2.5 billion with an operating margin of 17.1 percent
Pre-tax income of $2.2 billion with a pre-tax margin of 15.2 percent
Earnings per share of $2.68
Operating cash flow of $2.6 billion
Free cash flow of $1.1 billion
Adjusted net debt of $19.8 billion at quarter end
SEPTEMBER QUARTER AND FULL YEAR OUTLOOK1
3Q23 Forecast
FY 2023 Forecast
Total Revenue YoY
+11% – 14%
+17% – 20%
Operating Margin
Mid-Teens
>12%
Earnings Per Share
$2.20 – $2.50
$6 – $7
