Delta Air Lines (NYSE: DAL) reported financial results for the March quarter and provided its outlook for the June quarter, highlighting record revenue and strong earnings growth despite challenges faced by the airline industry.
“Thanks to the extraordinary work of our 100,000 people, Delta is delivering the best operational reliability in our history, and we have widened the gap to our competitors,” said Ed Bastian, Delta’s Chief Executive Officer.
“We were thrilled to recognize their efforts with $1.4 billion in profit sharing payouts during the quarter.”
For the March quarter, Delta reported record revenue on outstanding operational performance, enabling strong earnings growth.
The company anticipates continued strong momentum for its business, expecting to deliver record revenue, a mid-teens operating margin, and earnings of $2.20 to $2.50 per share in the June quarter.
Bastian expressed confidence in Delta’s full year targets for earnings of $6 to $7 per share and free cash flow of $3 to $4 billion.
On a GAAP basis, Delta reported operating revenue of $13.7 billion, operating income of $614 million with an operating margin of 4.5 percent, pre-tax income of $122 million with a pre-tax margin of 0.9 percent, and earnings per share of $0.06 for the March quarter.
The company also reported operating cash flow of $2.4 billion, payments on debt and finance lease obligations of $712 million, and total debt and finance lease obligations of $19.4 billion at quarter end.
On an adjusted basis, Delta reported operating revenue of $12.6 billion, 6 percent higher than the March quarter 2023, operating income of $640 million with an operating margin of 5.1 percent, pre-tax income of $380 million with a pre-tax margin of 3.0 percent, and earnings per share of $0.45.
The company also reported operating cash flow of $2.5 billion, free cash flow of $1.4 billion, adjusted debt to EBITDAR of 2.9x, down from 3.0x at the end of 2023, and return on invested capital of 13.8 percent on a trailing five quarter average, up 2.8 points over the prior year.
The press release includes a forward-looking statements disclaimer, highlighting the risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments, and strategies reflected in or suggested by the forward-looking statements.
These risks and uncertainties include, but are not limited to, the possible effects of serious accidents, breaches or lapses in the security of technology systems, disruptions in information technology infrastructure, increases in the cost of aircraft fuel, labor issues, the effects of seasonality and other factors beyond Delta’s control, failure to comply with existing and future environmental regulations, significant damage to the company’s reputation and brand, competitive conditions in the airline industry, extended interruptions or disruptions in service at major airports, the effects of extensive government regulation, the impact of environmental regulation, and unfavorable economic or political conditions in the markets in which Delta operates or volatility in currency exchange rates.
