dallas — Delta Air Lines (DL) reported financial results for the March 2024 quarter. The company achieved record revenues and outstanding performance during this period.
The airline's quarterly operating revenue increased by 6% compared to Q1 2023. During this period, the company also improved its operating profit, pre-tax profit, and earnings per share.
Highlights of the March quarter, including both GAAP and adjusted metrics, include:
- Operating revenue: USD 13.7 billion
- Operating profit: USD 614 million, operating margin 4.5%
- Pre-tax profit: USD 122 million, pre-tax margin 0.9%
- Earnings per share: USD 0.06
- Operating cash flow: USD 2.4 billion
- Payment of debt and finance lease obligations: USD 712 million
- Total debt and finance lease obligations: USD 19.4 billion at quarter end
Adjusted financial results
Regarding adjusted financial results for the March 2024 quarter, DL reported:
- Operating revenue: USD 12.6 billion, +6% compared to March 2023 quarter
- Operating profit: 640 million USD, operating profit margin 5.1%
- Pre-tax profit: USD 380 million, pre-tax margin 3.0%
- Earnings per share: USD 0.45
- Operating cash flow: USD 2.5 billion
- Free cash flow: USD 1.4 billion
- Adjusted debt to EBITDAR: 2.9x, down from 3.0x at end-2023
- Return on invested capital: 13.8% on average over the past five quarters, up 2.8 percentage points year over year
Outlook for 2024
Delta Air Lines expects to maintain its strong business momentum and deliver record revenue in the June 2024 quarter. The company expects operating margins in the mid-teens and earnings per share in the range of US$2.20 to US$2.50. The company remains confident in its full-year earnings per share target of $6 to $7 and free cash flow of $3 billion to $4 billion.
Delta CEO Ed Bastian thanks DL's 100,000 employees for their extraordinary work in helping the airline achieve its highest operational reliability ever did. In recognition of their efforts, the company distributed US$1.4 billion as profit distribution in the fiscal year ending March 2024.
Featured Image: N407DX, Delta Airbus A330-900NEO @KSLC.Photo: Michael Rodback/Airways
