Delta Air Lines Announces March Quarter 2024 Financial Results

"For the March quarter, we delivered record revenue on outstanding operational performance, enabling strong earnings growth.  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 $2.20 to $2.50 per share.  We remain confident in our full year targets for earnings of $6 to $7 per share and free cash flow of $3 to $4 billion."

March Quarter 2024 GAAP Financial Results

• 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
• Earnings per share of $0.06
• Operating cash flow of $2.4 billion
• Payments on debt and finance lease obligations of $712 million
• Total debt and finance lease obligations of $19.4 billion at quarter end

March Quarter 2024 Adjusted Financial Results

• 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
• Earnings per share of $0.45
• 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
• Return on invested capital of 13.8 percent on a trailing five quarter average, up 2.8 points over prior year

Financial Guidance¹ 

Additional metrics for financial modeling can be found in the Supplemental Information section under Quarterly Results on ir.delta.com.

Revenue Environment and Outlook

"We generated record March quarter revenues, 6 percent higher than the prior year.  Total unit revenue (TRASM) was down 0.7 percent compared to last year, including a nearly one-point headwind from Cargo and MRO.  This result was at the high end of our guidance, with the growth rate improving three points from the December quarter," said Glen Hauenstein, Delta's president. 

"Strong demand for travel on Delta is continuing into the June quarter where we expect total revenue growth of 5 to 7 percent compared to the June quarter 2023 on TRASM of flat to down 2 percent.  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."

• Record March quarter revenue: Delta delivered March quarter revenue that was 6 percent higher than 2023 driven by best-in-class operations and strong demand trends. Delta led the industry in completion factor and on-time performance, and operated 26 cancel-free, brand-perfect days in the quarter. Adjusted total unit revenue (TRASM) growth improved 3 points sequentially from the December quarter 2023 to down 0.7 percent year-over-year, including a nearly one-point headwind from cargo and MRO.
• Corporate travel demand accelerated: Managed corporate sales* grew 14 percent year-over-year, led by the return of large corporate accounts, particularly in the Technology, Consumer Services and Financial Services sectors. Recent corporate survey results indicate that 90 percent of companies expect their travel volumes to increase or stay the same in the June quarter and beyond.
• Domestic environment improved with robust demand: Domestic unit revenues were a March quarter record, growing 3 percent year-over-year with record domestic load factors. Unit revenues improved 7 points sequentially from the December quarter 2023, inflecting positive for the March quarter.
• International travel strength continued: International passenger revenue was 12 percent higher versus the March quarter 2023, with Transatlantic passenger unit revenue (PRASM) up 2 percent. International passenger unit revenues were down 3 percent on 16 percent higher capacity as Delta continued to invest in rebuilding the Latin and Pacific networks.
• Revenue diversification driving Delta's differentiation: For the quarter, diversified revenue streams, including Loyalty, Premium, Cargo and MRO comprised 57 percent of total revenues. Premium revenue grew 10 percent versus the March quarter 2023, continuing to outperform Main Cabin. Loyalty revenue was up 12 percent, driven by continued co-brand spend growth and increasing premium card mix. Remuneration from American Express for the March quarter was $1.7 billion, approximately 5 percent higher than the March quarter 2023.

Cost Performance and Outlook

"For the March quarter, we delivered pre-tax income of $380 million, an improvement of $163 million over last year.  Delta's operational excellence resulted in the best March quarter completion factor in our history, providing an incremental point of capacity growth and unit cost favorability with non-fuel unit costs 1.5 percent higher than last year," said Dan Janki, Delta's chief financial officer. 

"Growth is normalizing and we are in a period of optimization, with a focus on restoring our most profitable core hubs and delivering efficiency gains.  For the June quarter, non-fuel unit costs are expected to increase approximately 2 percent, consistent with our full year outlook for a low single-digit increase in non-fuel unit costs over 2023."

March Quarter 2024 Cost Performance

• Operating expense of $13.1 billion and adjusted operating expense of $11.9 billion
• Adjusted non-fuel costs of $9.2 billion
• Non-fuel CASM was 14.08¢, an increase of 1.5 percent year-over-year
• Adjusted fuel expense of $2.6 billion was down 5 percent year-over-year
• Adjusted fuel price of $2.76 per gallon declined 10 percent year-over-year with a refinery benefit of 5¢ per gallon
• Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.2, a 1.9 percent improvement year-over-year

Balance Sheet, Cash and Liquidity

"Delta delivered $1.4 billion of free cash flow in the March quarter after paying over $1 billion in profit sharing to our employees and reinvesting $1.1 billion in the business.  We repaid nearly $1 billion of debt and ended the quarter with 2.9x of leverage," Janki said. 

"We expect to repay at least $4 billion of debt this year and are on track to improve full year leverage.  Our commitment to strengthening the balance sheet was recognized this quarter with positive outlook updates from Moody's and Fitch, marking our continued progress towards an investment grade rating."

• Adjusted net debt of $20.2 billion at March quarter end, a reduction of $1.2 billion from the end of 2023
• Payments on debt and finance lease obligations for the March quarter of $712 million
• Weighted average interest rate of 4.5 percent with 91 percent fixed rate debt and 9 percent variable rate debt
• Adjusted operating cash flow in the March quarter of $2.5 billion, with gross capital expenditures of $1.1 billion, free cash flow was $1.4 billion
• Air Traffic Liability ended the quarter at $10.2 billion, up $3.1 billion compared to the end of 2023, a 45 percent increase
• Liquidity* of $7.4 billion at quarter-end, including $2.9 billion in undrawn revolver capacity

March Quarter 2024 Highlights

Operations, Network and Fleet

• Operated the most reliable airline among our competitors, ranking first in completion factor and on-time arrivals in the quarter, setting a Delta record for March quarter completion factor¹
• Recognized as the top U.S. airline by Wall Street Journal for a third consecutive year, ranking No. 1 in three of seven categories, including on-time arrivals and involuntary denied boardings
• Named 2024 Airline of the Year by aviation publication Air Transport World for Delta's outstanding operational performance, commitment to safety and premium customer service
• Took delivery of 7 new aircraft in the quarter, including the A321neo and A220-300, which are over 25 percent more fuel efficient than the aircraft they are replacing
• Announced that daily service between New York-JFK and Tel-Aviv (TLV) will resume in June

Culture and People

• Celebrated Delta people with $1.4 billion in profit sharing for 2023 performance, paid on Valentine's Day
• Honored by Fortune as No. 11 on the World's Most Admired Companies list
• Named in Fortune's list of the 100 Best Companies to Work For
• Ranked No. 5 on Forbes' list of America's Best Large Employers out of 600 companies based on surveys of more than 170,000 U.S.-based employees
• Celebrated 40 years of partnership with the Atlanta Community Food Bank at volunteer events with Delta people and SkyMiles members
• Delta volunteers honored the life and legacy of Dr. Martin Luther King Jr. by participating in community service clean-up events at Flushing Meadows Park in Queens, NY and the BeltLine in Atlanta on MLK Day

Customer Experience and Loyalty

• Re-launched Delta's co-brand credit cards with new benefits to provide customers with better experiences while traveling on Delta, staying in hotels, renting cars, traveling around town and dining out
• Achieved record quarterly American Express remuneration with increasing mix of premium card acquisitions
• Claimed the No. 2 spot on Fast Company's list of Most Innovative Companies in the travel category, for making fast and free Wi-Fi standard in the sky
• Named No. 10 on Food & Wine's list of Top Airlines for Food and Drinks, the only U.S. airline on the list
• Expanded the reach of fast, free Wi-Fi and Delta Sync on over 650 aircraft
• Announced a new premium Delta One lounge at New York-JFK that will debut in June 2024, spanning 38,000 square feet and featuring a year-round terrace, making it the largest club in Delta's network
• Provided SkyMiles members at the SXSW festival access to an elevated Delta lounge, a branded pop-up experience

Environmental, Social and Governance

• Improved fuel efficiency by 1.9 percent year-over-year in the quarter, driven by fleet renewal and other cross-divisional sustainability initiatives
• As a founding member of the Minnesota SAF Hub, Delta supported Greater MSP in issuing a request for proposal for a site selection study for a dedicated alcohol-to-jet refinery site in Minnesota
• Launched a strategic partnership between Delta and the U.S. Army PaYS program, which partners with corporations to give enlisting soldiers and ROTC cadets access to interviews and potential full-time employment following service in the army
• Delta and LATAM joined forces with New World School of the Arts to give students an exclusive Job Shadow Day at Miami International Airport, introducing them to career opportunities in aviation
• Introduced "Delta Business Class" – a sports business immersion program leveraging Delta's partnerships with professional sports teams to create the opportunity for students at four Historically Black Colleges/Universities (HBCUs) to pursue sports-related careers

March Quarter 2024 Results

March quarter results have been adjusted primarily for the third-party refinery sales, unrealized gains/losses on investments and loss on extinguishment of debt as described in the reconciliations in Note A.

	GAAP		$ Change	% Change
($ in millions except per share and unit costs)	1Q24	1Q23
Operating income/(loss)	614	(277)	891	NM
Operating margin	4.5 %	(2.2) %	6.7     pts	NM
Pre-tax income/(loss)	122	(506)	628	NM
Pre-tax margin	0.9 %	(4.0) %	4.9     pts	NM
Net income/(loss)	37	(363)	400	NM
Diluted earnings/(loss) per share	0.06	(0.57)	0.63	NM
Operating revenue	13,748	12,759	989	8 %
Total revenue per available seat mile (TRASM) (cents)	20.98	20.80	0.18	1 %
Operating expense	13,134	13,036	98	1 % Werbung Mehr Nachrichten zur Delta Air Lines Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 08.07.24 - ARIVA.DE Redaktion DAX heute kaum bewegt – Munich Re mit größtem Kursgewinn (18.482 Pkt.) 08.07.24 - ARIVA.DE Redaktion Munich Re-Aktie legt um 2,56 Prozent zu (457,00 €) 08.07.24 - ARIVA.DE Redaktion Minimaler Kursabschlag bei der SAP-Aktie (189,06 €) Neue Multibagger-Chance:    Warum Anleger mit dieser Aktie sehr viel Geld verdienen können! weiterlesen» Anzeige wo-site-teaser-box-17480_site-teaser-box_2024-07-08_11%253A00%253A00_2024-07-09_09%253A00%253A59