Delta Air Lines projects strong growth and solid performance in 2024

Friday, January 12, 2024

Delta Air Lines reports 2023 financials, anticipates strong 2024 with earnings growth, robust demand, and significant profit-sharing.

Delta Air Lines (listed as DAL on the New York Stock Exchange) recently disclosed its financial performance for the final quarter and the entirety of 2023, also sharing projections for the first quarter and the entire year of 2024. This announcement, which includes a detailed analysis of both GAAP (Generally Accepted Accounting Principles) and non-GAAP figures, can be found on page six of the report.

Ed Bastian, the CEO of Delta, expressed satisfaction with the company’s achievements in 2023, highlighting exceptional operational and financial results. He attributed this success to the dedication of Delta’s staff in providing unparalleled service to customers. In recognition of their efforts, the company plans to distribute $1.4 billion in profit-sharing payments. Looking ahead to 2024, Bastian noted the robust demand for air travel, with a financially strong customer base prioritizing travel. The company anticipates an increase in yearly earnings to between $6 and $7 per share and expects to generate free cash flow in the range of $3 to $4 billion, thereby bolstering its financial stability.

Key Financial Figures for the Fourth Quarter of 2023:

• GAAP Operating Revenue: $14.2 billion
• Operating Income: $1.3 billion (9.3% margin)
• Pre-Tax Income: $2.3 billion (16.0% margin)
• Earnings per Share: $3.16
• Operating Cash Flow: $545 million
• Debt and Lease Obligation Payments: $361 million

Adjusted Financial Results for the Fourth Quarter of 2023:

• Operating Revenue: $13.7 billion (11% increase from Q4 2022)
• Operating Income: $1.3 billion (9.7% margin)
• Pre-Tax Income: $1.1 billion (7.8% margin)
• Earnings per Share: $1.28
• Operating Cash Flow: $499 million

Full Year 2023 Financial Highlights:

• GAAP Operating Revenue: $58.0 billion
• Operating Income: $5.5 billion (9.5% margin)
• Pre-Tax Income: $5.6 billion (9.7% margin)
• Earnings per Share: $7.17
• Operating Cash Flow: $6.5 billion
• Debt and Lease Payments: $4.1 billion
• Total Debt and Lease Obligations: $20.1 billion

Adjusted Full Year 2023 Results:

• Operating Revenue: $54.7 billion (20% increase from 2022)
• Operating Income: $6.3 billion (11.6% margin)
• Pre-Tax Income: $5.2 billion (9.5% margin)
• Earnings per Share: $6.25
• Operating Cash Flow: $7.2 billion
• Free Cash Flow: $2.0 billion
• Adjusted Debt to EBITDAR: 3.0x (down from 5.0x at 2022 end)
• Return on Invested Capital: 13.4% (up 5 points from 2022)

The full release is available on PR Newswire and for download.

The forward-looking statements in this press release, not based on historical facts, encompass Delta’s estimates, expectations, beliefs, intentions, goals, and strategies for the future. These should be viewed as anticipatory and not as guarantees of future performance. Various risks and uncertainties, including those detailed in Delta’s filings with the Securities and Exchange Commission, such as their Annual Report on Form 10-K for the fiscal year ending December 31, 2022, could lead to actual results differing from these projections. Caution is advised against overly relying on these forward-looking statements, which are relevant only as of this press release’s date and are subject to change as per legal requirements.

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