AAirlines

Delta Air Lines reports record revenues in 2023

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Delta Air Lines more than doubled its profit in the fourth quarter of last year and posted record revenue in 2023, although it cut its profit expectations for 2024, the US carrier said.

The company reported net income of more than $2 billion for the October to December period, up from $828 million for the same period in 2022.

Its revenue jumped to $14.2 billion for the quarter, helped by “the highest holiday travel volumes in its history.”

Delta posted record revenues of $54.7 billion in 2023, up 20% over full-year 2022, and more than $5 billion in pre-tax profit, nearly double that of 2022.

Free cash flow for 2024 is between $3 billion and $4 billion, an improvement of up to $2 billion over 2023.

→ Delta Air Lines orders 20 Airbus A350-1000 aircraft

“In 2024, demand for air travel remains strong and our customer base is in a healthy financial position with travel a top priority,” said Delta chief executive Ed Bastian in a statement.

But in its earnings report, Delta lowered its full-year earnings forecast for 2024 slightly — from over $7 per share projected in 2022, to $6 to $7 per share now.

In an earnings webcast, company executives said volatile energy prices, along with lingering supply chain costs and issues, have caused them to be slightly cautious and prudent in making the earnings guidance.

Delta shares slumped by more than eight percent around midday on Friday, while rival United Airlines saw its shares plunge by 9.4 percent.

For the first quarter this year, Delta expects its revenue to rise by three to six percent, and anticipates earnings per share of between 25 cents and 50 cents.

This should come on the back of strong international travel demand and “a positive inflection in the domestic environment,” said Delta president Glen Hauenstein.

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