DAL Q3 2023 Earnings

Call Details

• Call Title: Delta Air Lines, Inc. Q3 2023 Earnings Call
• Date: October 12, 2023 at 2:00 PM UTC
• Management Team:
  • Ed Bastian (Chief Executive Officer)
  • Glenn Hauenstein (President)
  • Dan Janki (Chief Financial Officer)
  • Julie Stewart (Vice President of Investor Relations)
  • Tim Mapes (Chief Marketing and Communications Officer)
  • Peter Carter (Chief External Affairs)

Call Summary

Financial Performance

• Delta reported September quarter revenue of $14.6B, which was up 13% versus prior year.
• Earnings were $2.03 per share for the quarter, representing a 35% increase versus prior year.
• The company delivered a 13.5% operating margin and operating income of $2.0B for the quarter.
• Operating income over the last 12 months exceeded $6.0B, supporting a $420M profit sharing accrual this quarter and over $1.0B year to date.
• The company generated operating cash flow of $1.1B and reinvested $1.4B into the business during the quarter.
• Liquidity ended the quarter at $7.8B and adjusted net debt was $20.2B, with $3.7B of gross debt repaid year to date including $1.7B accelerated repayments.

Guidance

• For the December quarter, Delta expects revenues to be about 10% higher than 2022 with a 10% operating margin and earnings of over $1.00 per share.
• CFO guidance for the December quarter provides an earnings range of $1.05 to $1.30 per share and an operating margin range of 9% to 11%.
• Full-year guidance was reiterated to earnings of $6.00 to $6.25 per share, double-digit operating margin, and free cash flow of $2.0B.
• For the December quarter, the company expects non-fuel unit costs to be flat to up 2% year over year.
• December quarter fuel cost guidance is $2.90 to $3.20 per gallon with refinery expected to be roughly break-even for the quarter.
• Full-year revenue is expected to increase 20% over prior year, which was described as the high end of expectations.