During the first three months of the year, Delta Air Lines reported adjusted operating revenue of $11.8 billion whereas analysts expected $11.99 billion.
One of the oldest and busiest American airlines Delta Air Lines Inc (NYSE: DAL), has reported its financial results for the first three months of 2023 (Q1 2023) today. According to the announcement, Delta Air Lines posted a wider-than-estimated loss for the first quarter but forecast revenue growth and profits during the second quarter of the year.
“With solid March quarter profitability and a strong outlook for the June quarter, we are confident in our full-year guidance for revenue growth of 15 to 20 percent year over year, earnings of $5 to $6 per share, and free cash flow of over $2 billion,” Ed Bastian, Delta’s chief executive officer, noted.
As a result, Delta Air Lines shares gained over 2 percent during Thursday’s pre-market to trade around $34.64. Notably, the company’s shares have gained approximately 3.47 percent YTD, following last month’s 14 percent decline.
Delta Air Lines Lines Q1 2023 Financial Results
During the first three months of the year, Delta Air Lines reported adjusted operating revenue of $11.8 billion whereas analysts expected $11.99 billion. Additionally, the company noted that its adjusted earnings per share for the quarter came in at $0.25 whereas analysts expected 30 cents. With the company having about 641.24 million shares outstanding, the total dividends paid out amounted to approximately $160 million.
Delta Air Lines posted an adjusted operating cash flow of $2.9 billion during the first quarter with an adjusted net debt of about $21 billion.
Nevertheless, the company is optimistic about profitable quarters ahead following the listing of Covid-19 restrictions. Furthermore, the company announced a pay rise for its employees at a time when other industries including the banking sector were collapsing.
Speaking at CNBC, Bastian noted that its corporate bookings have been recovering, with domestic sales in March up about 85b percent back to 2019 levels. The company also noted that its cooperation with American Express contributed about $1.7 billion to its revenue, up 38 percent from the previous year.
“Thanks to the outstanding work and dedication of the Delta team, 2023 is off to a strong start. We provided well-deserved pay increases for our people and paid more profit sharing than the rest of the industry combined. Delta is building momentum, with the best people in the industry generating nearly $5 billion of operating profit over the last twelve months,” Ed Bastian said.
During the current quarter, Delta Air Lines expects its revenue to rise by between 15 to 17 percent. Additionally, the company forecast its earnings per share for the second quarter will come in between $2 and $2.25.
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Source: https://www.coinspeaker.com/delta-air-lines-mixed-results-q1-2023/