Delta Air Lines has revealed its financial results for the first quarter of 2024 (1Q24) quarter and has also provided an outlook for the second quarter of 2024 (2Q24) which ends in June 2024. The carrier achieved record revenue figures in 1Q24 and saw improvements in pre-tax income, operating income, and earnings per share.
Highlights from the airline精东影业 earnings call to shareholders and investors held on April 10, 2024, showed the following adjusted results:聽
- Operating revenue of鈥$12.6 billion, 6% higher than 1Q23.
- Operating income of鈥$640 million鈥痺ith an operating margin of 5.1%.
- Pre-tax income of鈥$380 million鈥痺ith a pre-tax margin of 3%.
- Earnings per share of鈥$0.45.
- Operating cash flow of鈥$2.5 billion
- Free cash flow of鈥$1.4 billion
- Adjusted debt to EBITDAR of 2.9x, down from 3.0x at the end of 2023.
- Return on invested capital of 13.8%, up 2.8% over 1Q23.
“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,鈥 said鈥疎d Bastian, Delta’s Chief Executive Officer. 鈥淲e were thrilled to recognize their efforts with鈥$1.4 billion鈥痠n profit-sharing payouts during the quarter,”
“For the March quarter, we delivered record revenue on outstanding operational performance, enabling strong earnings growth.鈥 We anticipate continued strong momentum for our business, and in the June quarter, we expect to deliver record revenue, a mid-teens operating margin, and earnings of鈥$2.20鈥痶o鈥$2.50鈥痯er share.鈥疻e remain confident in our full-year targets for earnings of鈥$6鈥痶o鈥$7鈥痯er share and free cash flow of鈥$3鈥痶o鈥$4 billion,鈥 Bastian added.
Speaking about the airline精东影业 operating environment and outlook for the next quarter,鈥疓len Hauenstein, Delta’s President said: “We generated record March quarter revenues,鈥6% higher than the prior year.鈥 Total unit revenue (TRASM) was down 0.7% compared to 2023, including a nearly one-point headwind from Cargo and MRO.鈥 This result was at the high end of our guidance, with the growth rate improving three points from [4Q23].鈥
“Strong demand for travel on Delta is continuing into the June quarter where we expect total revenue growth of 5% to 7&% compared to 2Q23. Within this outlook, all geographic entities are expected to achieve unit revenue approximately flat to last year, except Latin, where we expect a double-digit decline as we lap strong performance and continue to profitably invest in the network,鈥 Hauenstein said.
According to a company press release, Delta operated the most reliable scheduled service among its competitors in 1Q24, ranking first for both completion factor and on-time performance. Additionally, the carrier was recognized as the top US airline by the Wall Street Journal for a third consecutive year, ranking first in three out of seven categories, including on-time arrivals and involuntary denied boardings. The company was also named as 鈥2024 Airline of the Year鈥 by aviation publication Air Transport World.
Delta took delivery of seven new aircraft in 1Q24, which included both Airbus A321neo and A220-300 types, the latter of which are over 25% more fuel efficient than the aircraft they are replacing, according to the carrier. According to ch-aviation, the carrier now operates a total fleet of 989 aircraft with a further 332 on order.
Lastly, of note in 1Q24 was that the airline announced the resumption of its daily service between New York-JFK and鈥疶el-Aviv鈥(TLV) due to restart in June 2024.
