During the first three months of the year, Delta Air Lines reported adjusted operating revenue of $11.8 billion, while analysts were expecting $11.99 billion.
One of the oldest and busiest US airlines Delta Air Lines Inc (NYSE: DAL) today reported its financial results for the first three months of 2023 (Q1 2023). According to the announcement, Delta Air Lines reported a wider-than-anticipated loss for the first quarter, but projected 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 remain confident of our full-year guidance for revenue growth of 15 to 20 percent, earnings per share of $5 to $6, and free cash flow more than $2 billion,” said Ed Bastian, Delta’s chief executive officer.
As a result, shares of Delta Air Lines rose more than 2 percent to trade around $34.64 during Thursday’s pre-market. Notably, the company’s shares have gained around 3.47 per cent YTD after last month’s fall of 14 per cent.
Delta Air Lines Q1 2023 Financial Results
During the first three months of the year, Delta Air Lines reported adjusted operating revenue of $11.8 billion, while analysts were expecting $11.99 billion. Additionally, the company noted that its adjusted earnings per share for the quarter came in at $0.25, while analysts were expecting 30 cents. With the company having approximately 641.24 million shares outstanding, the total dividends paid amounted to approximately $160 million.
Delta Air Lines posted adjusted operating cash flow of $2.9 billion with adjusted net debt of nearly $21 billion during the first quarter.
Nevertheless, the company is optimistic about profitable quarters following the listing due to Covid-19 restrictions. Furthermore, the company announced a pay hike for its employees at a time when other industries, including the banking sector, were collapsing.
Speaking At CNBC, Bastion noted that its corporate bookings are recovering, with home sales in March back about 85b percent to 2019 levels. The company also noted that its association with American Express contributed nearly $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 delivered well-deserved wage increases for our people and a higher profit share than the rest of the industry combined. Delta momentum making nearly $5 billion in operating profit over the last twelve months with the best in the industry,” Ed Bastian Said,
During the current quarter, Delta Air Lines expects its revenue to grow between 15 and 17 percent. Additionally, the company anticipates earnings per share for the second quarter to be between $2 and $2.25.
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