- Delivered the highest quarterly revenue and profitability in Delta’s history
- Strong June quarter operating cash flow enabled accelerated debt reduction
- Expect record September quarter revenue, mid-teens operating margin and EPS of $2.20 - $2.50
- Raising full year EPS outlook to $6 - $7 and reiterating free cash flow guide of $3 billion
Delta Air Lines reported financial results for the June quarter and provided its outlook for the September quarter of 2023. Highlights of the June quarter, including both GAAP and adjusted metrics, are on page five and incorporated here.
"Thanks to the incredible work of our entire team, Delta is delivering for our customers by providing strong operational performance and best-in-class service during this busy summer period. With this performance, we generated record revenue and profitability in the June quarter. Our people are the best professionals in the industry, and I’m proud to recognize their achievements with $667 million in the first half toward next year’s profit-sharing payment," said Ed Bastian, Delta's Chief Executive Officer.
“Consumer demand for air travel remains robust. Against this constructive backdrop, we are increasing our 2023 earnings guidance to $6 to $7 per share and reiterating our recently updated outlook for $3 billion of free cash flow.”
JUNE QUARTER 2023 GAAP FINANCIAL RESULTS
- Record operating revenue of $15.6 billion
- Record operating income of $2.5 billion with an operating margin of 16.0 percent
- Pre-tax income of $2.3 billion with a pre-tax margin of 14.9 percent
- Earnings per share of $2.84
- Operating cash flow of $2.6 billion
- Payments on debt and finance lease obligations of $1.8 billion
- Total debt and finance lease obligations of $20.2 billion at quarter end
JUNE QUARTER 2023 ADJUSTED FINANCIAL RESULTS
- Record operating revenue of $14.6 billion, 19 percent higher than the June quarter 2022
- Record operating income of $2.5 billion with an operating margin of 17.1 percent
- Pre-tax income of $2.2 billion with a pre-tax margin of 15.2 percent
- Earnings per share of $2.68
- Operating cash flow of $2.6 billion
- Free cash flow of $1.1 billion
- Adjusted net debt of $19.8 billion at quarter end
SEPTEMBER QUARTER AND FULL YEAR OUTLOOK1
| 3Q23 Forecast | FY 2023 Forecast |
Total Revenue YoY | +11% - 14% | +17% - 20% |
Operating Margin | Mid-Teens | >12% |
Earnings Per Share | $2.20 - $2.50 | $6 - $7 |
1 Non-GAAP measures; Refer to Non-GAAP reconciliations for comparison figures
June Quarter Highlights
Operations, Network and Fleet
Earned the #1 spot on The Points Guy's list of best U.S. Airlines for the fifth year in a row, consistently scoring high in reliability, customer experience, network and the loyalty programImplemented largest ever trans-Atlantic summer schedule in Delta's history with more than 650 weekly flights to 32 destinations and a 20 percent increase in seat capacity versus summer 2022
Delta and LATAM announced new and enhanced service, with U.S.-Colombia routes and LATAM's first Atlanta route
Signed an agreement with EL AL Israel Airlines to launch a strategic partnership with more convenient connections for customers, reciprocal codeshare and frequent flyer benefits
Took delivery of 18 aircraft this year and 12 this quarter, including the A321neo, A220-300 and A330-900; exercised option to purchase 12 additional A220s and added one A330-900 to the order book
Culture and People
Welcomed Mike Spanos as Chief Operating Officer and Alicia Tillman as Chief Marketing OfficerAccrued $595 million toward profit sharing in the June quarter, resulting in $667 million accrued in the first half, more than the entire year of 2022
Provided a 5 percent base pay increase for eligible employees worldwide, effective April 1, 2023, maintaining our philosophy of industry-leading pay for industry-leading performance
Ranked No. 1 in Strategic Clarity and No. 2 on Leadership Alignment in the Return On Leadership 100 Ranking of the top 100 Fortune 500 companies with a top 20 ranking overall
Named one of the Best Employers for Diversity by Forbes, along with one of the top companies for career growth by LinkedIn
Awarded this year's Industrial Sector Leader as one of the most community-minded companies in the U.S. and recognized on The Civic 50 by Points of Light for the sixth consecutive year
Recognized as the No. 1 corporate blood drive sponsor with the American Red Cross for the sixth consecutive year with record units of blood collected
Customer Experience and Loyalty
Welcomed over 3 million new SkyMiles members in the quarter marking the second consecutive record quarterGenerated record American Express remuneration with increasing premium card acquisitions
Continued to roll out fast, free Wi-Fi for SkyMiles members across the fleet, bringing total to more than 540 aircraft with full availability across Delta's global fleet planned by the end of 2024
Launched Delta Sync, the first-of-its-kind platform providing curated onboard experiences for customers
Named best airline in North America by millions of airline customers at Skytrax World Airline Awards; Earned No. 1 ranking for Best Airline Staff Service in North America
Named No. 1 for Premium Economy by J.D. Power for 2023
Delta's new Terminal C at LGA and Terminal 3 at LAX made The Condé Nast Traveler's 2023 Hot List in its "ultimate guide to planning your perfect trip"
Opened a third Delta Sky Club at Minneapolis-Saint Paul International Airport, the largest at MSP with seating for more than 450 and a first-of-its-kind Sky Deck for MSP
Opened five new gates at SLC, with the eastern portion of Concourse A expected by year-end
Environmental, Social and Governance
Issued Delta's annual ESG Report which shares examples from 2022 of how Delta is creating a safer, more equitable workplace, reflecting the communities we serve while pushing towards a more sustainable future
Accelerating commitment to SAF with the purchase of 10 million gallons of SAF from Shell Aviation to be delivered over a two-year period for use at Los Angeles International Airport.
Completed electrification of nearly all core ground service equipment at hubs in SLC and BOS with goals to extend to ATL, LAX, SEA, MSP, JFK, LGA and others
Participated in SkyTeam's Sustainable Flight Challenge