Revenue
Earnings
The consensus target for earnings is $2.36 per share, which compares to adjusted EPS of $2.68 reported in the prior-year period. In Q1 2024, adjusted EPS rose 80% YoY to $0.45.
Points to note
For the second quarter of 2024, Delta has guided for revenue growth of 5-7% on capacity growth of 6-7% with unit revenues flat to down 2% on a year-over-year basis. The company saw strong demand trends in the March quarter, with domestic unit revenue growing 3% YoY. It also witnessed strength in international travel, and a pickup in corporate travel demand, with the return of large corporate accounts.
On its Q1 quarterly call, Delta said it was seeing strong travel demand continue into the June quarter. For Q2, the company expects domestic unit revenues to remain flattish YoY. It expects to see strong results in the Transatlantic, with unit revenues expected to benefit from improved corporate travel trends. In Latin America, unit revenues are expected to be pressured by headwinds in short-haul leisure markets, which in turn are expected to see improvements during the latter half of the year.
Delta remains optimistic about corporate travel. As mentioned on its call, based on a survey, 90% of companies intend to maintain or increase travel volumes in the second quarter, putting the airline on track to deliver record corporate revenues in the second half of 2024.
For the June quarter, Delta expects adjusted EPS to range between $2.20-2.50, while operating margin is expected to be 14-15%. Non-fuel unit costs are expected to be approx. 2% higher than last year.