Delta Air Lines Announces Full Year Profit, Outlook for 2023
Delta Air Lines reported financial results for the most recent December quarter and full year 2022 as well as provided an outlook for the current March quarter 2023 on Friday.
The airline generated double-digit operating margin in the final quarter of 2022 with earnings per share (EPS) ahead of guidance.
Adjusted financial results for the quarter include operating revenue of $12.3 billion, which is 8 percent higher than the pre-pandemic December quarter 2019, operating income of $1.4 billion with an operating margin of 11.6 percent, pre-tax income of $1.2 billion with a pre-tax margin of 10.1 percent, EPS of $1.48 and operating cash flow of $1.2 billion.
For the full year adjusted, Delta reported operating revenue of $45.6 billion, just 2 percent lower than the pre-COVID full year 2019, operating income of $3.6 billion with an operating margin of 7.8 percent, pre-tax income of $2.7 billion with a pre-tax margin of 5.9 percent, EPS of $3.20, operating cash flow of $6.2 billion, free cash flow of $244 million and $9.4 billion in liquidity and adjusted net debt of $22.3 billion at year’s end.
The airline also announced Friday that it expects March quarter revenue to accelerate further relative to 2019 and reiterated its outlook for significant earnings and cash flow growth in 2023, including EPS of $5-$6 and free cash flow of more than $2 billion.
“Delta people rose to the challenges of 2022, delivering industry-leading operational reliability and financial performance, and I’m looking forward to recognizing their achievements with over $500 million in profit sharing payments next month,” Delta CEO Ed Bastian said in a statement.
“As we move into 2023, the industry backdrop for air travel remains favorable, and Delta is well positioned to deliver significant earnings and free cash flow growth. We expect to grow 2023 revenue by 15-20 percent and improve unit costs year-over-year, supporting a full-year outlook for earnings of $5 to $6 per share and keeping us on track to achieve more than $7 of earnings per share in 2024.”