Delta Air Lines Surges As Travel Demand Drives Q2 Earnings Beat
"Consumer demand for air travel remains robust," said Delta CEO Ed Bastian.
Updated at 7:20 am EDT
Delta Air Lines (DAL) - Get Free Report posted better-than-expected second quarter earnings Thursday, while lifting its full-year profit forecast, as the ongoing boom in travel demand, alongside lower fuel costs, helped boost the carriers overall bottom line.
Delta said adjusted earnings for the three months ending in JUne were pegged at $2.68 per share, up 86% over the same period last year and firmly ahead of the Street consensus of $2.39 per share.
Group revenues, Delta said, rose by around 12.7% to a record $15.6 billion, a figure that also topped analysts' estimates of a $14.46 billion tally.
Looking into the current quarter, Delta said its sees revenue growth of between 11% and 14%, firmly ahead of Street forecasts, with earnings in the range of $2.20 to $2.50 per share.
For the full year, the carrier said it sees earnings in the region of $6 to $7 per share, a $1 improvement from its prior forecast, while reiterating its target of $3 billion in free cash flow.
"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," said CEO Ed Bastian. "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."
"Consumer demand for air travel remains robust. Against this constructive backdrop, we are increasing our 2023 earnings guidance and reiterating our recently updated outlook for free cash flow," he added.
The Transportation Security Administration said last week that its screened more than 11.3 million passengers over the five-day period that ended on July 5, a level that represents around 93% of the volumes recorded over the same period in 2019.
Delta Air Lines shares were marked 4.46% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $50.09 each
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