Delta Air Lines Announces September Quarter 2023 Financial Results.

ATLANTA: Delta Air Lines (NYSE: DAL) today reported financial results for the September quarter and provided its outlook for the December quarter 2023. Highlights of the September quarter, including both GAAP and adjusted metrics, are on page five and incorporated here.

"Thanks to the outstanding work of our entire team, Delta delivered record September quarter revenue and a double-digit operating margin. Our operational reliability continues to strengthen, thanks to our people, and I'm pleased to recognize their outstanding efforts with over $1 billion accrued year-to-date towards profit sharing," said Ed Bastian, Delta's chief executive officer.

Delta continues to set itself apart as a trusted consumer brand delivering welcoming, caring and elevated service by the best people in the industry. Our differentiated position supports our expectations for full year revenue growth of 20 percent over 2022, and pre-tax earnings of over $5 billion, a near doubling over prior year earnings.

September Quarter 2023 GAAP Financial Results

Operating revenue of $15.5 billion

Operating income of $2.0 billion with an operating margin of 12.8 percent

Pre-tax income of $1.5 billion with a pre-tax margin of 9.8 percent

Earnings per share of $1.72

Operating cash flow of $1.1 billion

Payments on debt and finance lease obligations of $724 million

Total debt and finance lease obligations of $19.5 billion at quarter end

September Quarter 2023 Adjusted Financial Results

Operating revenue of $14.6 billion, 13 percent higher than the September quarter 2022

Operating income of $2.0 billion with an operating margin of 13.5 percent

Pre-tax income of $1.7 billion with a pre-tax margin of 11.8 percent

Earnings per share of $2.03

Operating cash flow of $1.1 billion

Adjusted net debt of $20.2 billion at quarter end

December Quarter and Full Year Outlook1

4Q23 Forecast

FY 2023 Forecast

Total Revenue YoY

Up 9% - 12%

Up ~20%

Operating Margin

9% - 11%

~11.5%

Earnings Per Share

$1.05 - $1.30

$6.00 - $6.25

1Non-GAAP measures; Refer to Non-GAAP reconciliations for comparison figures

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 September quarter revenue, with total revenues 13 percent higher than the September quarter of 2022. With this performance, we expect to deliver a record September quarter unit revenue premium to the industry, reflecting the strength of Delta's diverse revenue streams and continued brand momentum," said Glen Hauenstein, Delta's president.

Robust demand for travel on Delta is continuing into the December quarter where we expect total revenue growth of 9 percent to 12 percent compared to the December quarter 2022 with total unit revenue (TRASM) expected to decline 2.5 percent to 4.5 percent. Within this outlook, Domestic and Transatlantic trends are consistent with the September quarter on a year-over-year basis, while unit revenue trends in the Pacific and Latin America are expected to modestly decelerate given capacity growth related to China re-opening and investment in our LATAM JV.

Demand for travel on Delta remains strong: Unit revenues in the September quarter were at the high-end of guidance, with adjusted total unit revenue (TRASM) down 2.5 percent year-over-year, including approximately one point of pressure from Cargo and MRO. Passenger unit revenue (PRASM) was down 1.5 percent year-over-year.

Domestic demand environment steady: Domestic passenger revenue increased 6 percent versus 2022 on 11 percent more capacity, with domestic unit revenue down 4 percent year-over-year. Coastal hub load factors expanded year-over-year, driven by growing demand in Boston and New York. Business travel continues to improve as corporates announce return to office initiatives. Our recent corporate survey indicates that a significant majority of companies are expecting their travel volumes to...