Delta Air Lines Inc (NYSE: DAL), one of the oldest airlines in operation, has announced its highest quarterly earnings in the June quarter. The company recorded adjusted revenue of $14.61 billion, surpassing the $14.49 billion expected by analysts.

The strong performance in the June quarter has allowed Delta to generate a significant operating cash flow, which will be used to reduce its debt. The company’s adjusted earnings per share were $2.68, higher than the $2.40 expected by Wall Street analysts.

Delta Air Lines attributed its success to the high consumer demand for air travel following the lifting of Covid-19 restrictions worldwide. The company’s June quarter revenue was 19 percent higher than the same period last year.

The airline reported an operating income of approximately $2.5 billion with an operating margin of 17.1 percent in the June quarter. It also achieved an operating cash flow of $2.6 billion and a free cash flow of $1.1 billion. Delta’s adjusted net debt at the end of the June quarter was $19.8 billion.

CEO Ed Bastian expressed confidence in the future demand for air travel, particularly in the trans-Atlantic market, which saw a significant increase of over 60 percent compared to last year.

Delta Air Lines Raises 2023 Earnings Guidance

Based on its strong performance, Delta Air Lines has raised its 2023 earnings guidance to $6 – $7 per share. The company also reiterated its outlook for $3 billion of free cash flow. For the third quarter, Delta anticipates earning $2.20 to $2.50 per share, exceeding analysts’ expectations.

The announcement of the company’s quarterly earnings resulted in a 2.5 percent increase in Delta shares before retracting. However, the airline’s shares have gained around 43 percent in the past three months, trading at approximately $47.60. With a market value of $30.82 billion, Delta Air Lines has convinced investors of its profitable future outlook.

Frequently Asked Questions (FAQ)

1. What is Delta Air Lines’ adjusted revenue for the June quarter?

Delta Air Lines reported adjusted revenue of approximately $14.61 billion for the June quarter, surpassing analysts’ expectations.

2. What are Delta Air Lines’ earnings per share for the June quarter?

Delta Air Lines achieved adjusted earnings per share of $2.68 for the June quarter, higher than the $2.40 expected by Wall Street analysts.

3. What is Delta Air Lines’ outlook for the September quarter of 2023?

Delta Air Lines anticipates earning $2.20 to $2.50 per share in the September quarter, which is above analysts’ expectations. The company also raised its 2023 earnings guidance to $6 – $7 per share.

4. How has Delta Air Lines’ stock performed?

Delta Air Lines’ shares have gained approximately 43 percent in the past three months and are currently trading around $47.60. The company’s strong performance has convinced investors of its profitable future outlook.

5. What is Delta Air Lines’ adjusted net debt at the end of the June quarter?

Delta Air Lines reported an adjusted net debt of $19.8 billion at the end of the June quarter.