Categories Analysis, Industrials

Key takeaways from Delta Air Lines’ (DAL) Q4 2023 earnings report

EPS is expected to range between $0.25-0.50 for the March quarter

Shares of Delta Air Lines (NYSE: DAL) plunged over 8% on Friday after the company delivered better-than-expected earnings results for the fourth quarter of 2023 but lowered its full-year guidance. The stock has gained 13% over the past three months. Here are the key takeaways from the airline’s Q4 earnings report:

Quarterly numbers

Delta reported operating revenue of $14.2 billion for the fourth quarter of 2023, which was up 6% from the same quarter a year ago and ahead of estimates of $13.5 billion. Adjusted operating revenues increased 11% to $13.7 billion. GAAP net income more than doubled from last year to $2 billion, or $3.16 per share. Adjusted EPS fell 14% year-over-year to $1.28 but surpassed projections of $1.16.

Business performance

In Q4, Delta continued to see strong demand for leisure and business travel, with holiday travel volumes reaching a record. Corporate sales saw double-digit year-over-year growth in the month of December. In its earnings report, Delta stated that, based on results from a recent corporate survey, 93% of companies surveyed expect their travel volumes to increase sequentially or stay the same in the March quarter and into 2024.

Passenger revenue increased 12% YoY to $12.1 billion in the fourth quarter. Cargo revenue was down 24%. Delta is seeing strong demand for international travel, with international passenger revenue rising 25% in Q4 over last year.

Total revenue per available seat mile (TRASM) was down 8% in Q4 while capacity was up 15%. Passenger revenue per available seat mile (PRASM) was down 3% and passenger load factor was 84%. CASM-ex was up 1.1% while average fuel price per gallon was $3.01, down 8% YoY.

Outlook

Delta sees strong travel demand in 2024. The company expects total revenue for the first quarter of 2024 to be up 3-6% YoY. EPS is expected to range between $0.25-0.50 for the quarter. Unit revenues for the March quarter are expected to be flat to down 3% over the prior-year period.

For the full year of 2024, Delta expects EPS to range between $6-7. This compares to the company’s earlier guidance given in its FY2022 report where it stated it was on track to achieve more than $7 of EPS in 2024.

Listen to the conference calls as they happen. Don't miss a beat! With AlphaStreet Intelligence, you can listen to live calls and interviews as they happen, so you never have to worry about missing out on important information.

Most Popular

CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%

Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss

Key metrics from Nike’s (NKE) Q2 2025 earnings results

NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net

FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips

Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top