Delta reports increased luxury demand and record advance summer bookings
Delta Air Lines revealed the financial results for the first quarter of 2023 and updated its outlook for the second quarter, including record advance summer bookings.
Delta reported operating revenue of $12.8 billion, operating loss of $277 million, pre-tax loss of $506 million, operating cash flow of $2.2 billion and total debt and finance lease obligations of $22 billion at quarter end.
The airline also announced adjusted financial results for the March quarter, with totals reaching 45 percent higher than the first quarter of 2022 and 14 percent from the same period in 2019. Operating income rose to $546 million with an operating margin of 4.6 percent.
“Thanks to the outstanding work and dedication of the Delta team, 2023 is off to a strong start,” CEO Ed Bastian said. “We provided well-deserved pay increases for our people and paid more profit sharing than the rest of the industry combined. Delta is building momentum, with the best people in the industry generating nearly $5 billion of operating profit over the last twelve months.”
The carrier revealed that advance cash bookings were nearly 20 percent higher than in 2019, while total unit revenue (TRASM) rose 16 percent compared to pre-pandemic totals and 23 percent versus 2022.
Revenue from premium products and diverse revenue streams was 56 percent of adjusted operating revenue, with premium revenue growth continuing to outpace the main cabin. Co-brand acquisitions and spending growth also drove loyalty revenue improvement.
“We delivered record March quarter revenue with total unit revenue that was 16 percent higher than the same period in 2019,” President Glen Hauenstein said. “These results reflect the strength in the underlying demand environment and continued momentum in premium products and loyalty revenue.”
Another reason for the recent success was an increase in small- and medium-business bookings, which recovered to 2019 levels. International corporate sales grew to around 90 percent of pre-pandemic levels, excluding China.
“With record advance bookings for the summer, we expect June quarter revenue to be 15 to 17 percent higher on capacity growth of 17 percent year over year,” Hauenstein continued.