Delta Reports Over $1 Billion Profit

A Delta Airbus A350-900 landing

Delta has posted its September quarter financial results for 2023, showing how the major airline is tracking.

Delta’s Quarter In Numbers

Delta saw record revenues with earnings growth of over 30% recorded year-over-year.

Regarding its adjusted financial results for the quarter, operating revenue stood at USD 14.6 billion. This is 13% higher than the year before.

Operating income comes in at USD 2 billion with an operating margin of 13.5%.

Meanwhile, pre-tax income reached USD 1.7 billion, with a quarter’s pre-tax margin of 11.8%.

Delta says its operating cash flow reached USD 1.1 billion. At the same time, the adjusted net debt of USD 20.2 billion at the quarter’s end was reported.

A Strong Recovery Continues

Delta said in the quarter that it flew 88% of its aircraft at total capacity. This ended up being only a 1% increase from one year prior.

While there was a drop in overall unit revenue, Delta notes a decrease in airfares is the catalyst. A slight decrease comes following schedules growing rather than declining.

Delta is hardly concerned with the minor drop, which is calculated to be 1.5% year-over-year. The U.S.-based carrier firmly believes its premium product will continue to soar.

We generated record September quarter revenue, with total revenues 13 percent higher than the September quarter of 2022. With this performance, we expect to deliver a record September quarter unit revenue premium to the industry, reflecting the strength of Delta’s diverse revenue streams and continued brand momentum.

Glen Hauenstein, Delta’s president.

In the quarter, its premium product sales stood at USD 5.11 billion, representing an increase, and its main cabin came in at USD 6.62 billion.

Given the typical split between premium and main cabins, this highlights how much revenue can be generated from these premium seats.

A Strong Outlook For Remainder Of 2023

Off the back of a solid third quarter, Delta expects the performance to continue in an upward trajectory as 2023 comes to a close.

The airline forecasts that revenues will rise roughly 10%. Meanwhile, its operating margin should also grow by about 10%.

For the December quarter, we expect non-fuel unit costs to be flat to 2% higher year-over-year as we realize the benefits of scale and efficiency while making investments in our people and operational reliability. Delivering operational excellence while driving efficiency remains a top priority

Dan Janki, Delta’s Chief Financial Officer.
Daniel Fowkes
13 Oct 2023
· Airlines 

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