Delta Air Lines (NYSE: DAL) today reported financial results for the June quarter and provided its outlook for the September quarter 2023.
Ed Bastian, Delta’s chief executive officer said, “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.”
He further revealed, “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 $19.8 billion at quarter end
June Quarter Results
| ($ in millions except per share and unit costs) | GAAP
2Q23 |
2Q22 | $ %
Change Change |
|
| Operating income | 2,491 | 1,519 | 972 | 64 % |
| Operating margin | 16.0 % | 11.0 % | 5.0 pts | 45 % |
| Pre-tax income | 2,317 | 1,033 | 1,284 | NM |
| Pre-tax margin | 14.9 % | 7.5 % | 7.4 pts | 99 % |
| Net income | 1,827 | 735 | 1,092 | NM |
| Diluted earnings per share | 2.84 | 1.15 | 1.69 | NM |
| Operating revenue | 15,578 | 13,824 | 1,754 | 13 % |
| Total revenue per available seat mile (TRASM) (cents) | 22.58 | 23.47 | (0.89) | (4)% |
| Operating expense | 13,087 | 12,305 | 782 | 6 % |
| Cost per available seat mile (CASM) (cents) | 18.97 | 20.89 | (1.92) | (9)% |
| Fuel expense | 2,516 | 3,223 | (707) | (22)% |
| Average fuel price per gallon | 2.52 | 3.74 | (1.22) | (33)% |
| Operating cash flow | 2,609 | 2,535 | 74 | 3 % |
| Capital expenditures | 1,452 | 958 | 494 | 52 % |
| Total debt and finance lease obligations | 20,205 | 24,839 | (4,634) | (19)% |
| ($ in millions except per share and unit | costs) | Adjusted
2Q23 |
2Q22 | $ %Change Change | ||
| Operating income | 2,494 | 1,445 | 1,049 | 73 % | ||
| Operating margin | 17.1 % | 11.7 % | 5.4 | pts | 46 % | |
| Pre-tax income | 2,220 | 1,222 | 998 | 82 % | ||
| Pre-tax margin | 15.2 % | 9.9 % | 5.3 | pts | 54 % | |
| Net income | 1,723 | 921 | 802 | 87 % | ||
| Diluted earnings per share | 2.68 | 1.44 | 1.24 | 86 % | ||
| Operating revenue | 14,613 | 12,311 | 2,302 | 19 % | ||
| TRASM (cents) | 21.18 | 20.90 | 0.28 | 1 % | ||
| Operating expense | 12,119 | 10,866 | 1,253 | 12 % | ||
| Non-fuel cost | 9,011 | 7,516 | 1,495 | 20 % | ||
| Non-fuel unit cost (CASM-Ex) (cents) | 13.06 | 12.76 | 0.30 | 2.4 % | ||
| Fuel expense | 2,513 | 3,296 | (783) | (24)% | ||
| Average fuel price per gallon | 2.52 | 3.82 | (1.30) | (34)% | ||
| Operating cash flow | 2,648 | 2,465 | 183 | 7 % | ||
| Free cash flow | 1,094 | 1,608 | (514) | (32)% | ||
| Gross capital expenditures | 1,572 | 864 | 708 | 82 % | ||
| Adjusted net debt | 19,841 | 19,578 | 263 | 1 % | ||
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