Delta Air Lines today reported its financial results for the third quarter of 2022 and unveiled its outlook for the last three months of the year. The company highlighted the revenue for the period: for the second consecutive quarter, it achieved a double-digit operating margin.
In addition, they reported that they expect the revenue recovery in the last quarter to accelerate compared to 2019, the last year before the start of the pandemic.
«Thanks to the incredible work of our entire team, Delta delivered a strong September quarter with record quarterly revenues and a double-digit operating margin», said Ed Bastian, the company’s CEO. He noted that the industry recovery continues to be strong and demand is on the rise. Bastian said: «In this environment, we expect December quarter revenue growth to accelerate versus 2019 with an operating margin of approximately 10%».
«We are ahead of our plan for the year on profitability and expect to be free cash flow positive», Bastian added. He also expressed good prospects for the near future: «We are working towards full network restoration by summer of 2023».
Delta Air Lines third quarter 2022 key adjusted financial results
- Operating revenue of 12.8 billion dollars. The figure represents a 3% increase compared to the same quarter in 2019. The company highlighted the economic impact of Hurricane Ian on its operations, totalling 35 million.
- Operating income of 1.5 billion dollars, up 27% compared to the third quarter of 2019. Operating margin of 11.6%, 29% higher than reported between July and September 2019.
- 11.2 billion dollars in liquidity, including cash and cash equivalents, short-term investments and undrawn revolving credit facilities.
- Adjusted net debt of 20.5 billion dollars.
- Earnings per share of 1.51 dollars (35% higher than reported in the third quarter of 2019), including a three-cent impact from the Hurricane Ian.
Projections ahead of the final quarter of the year
«We reached a major milestone this quarter, with adjusted revenue 3% higher and unit revenues up 23% compared to 2019, marking the highest revenue and unit revenue quarter in Delta’s history», noted Glen Hauenstein, Delta’s President. «With corporate travel improving and robust domestic and international demand, we expect December quarter revenue to be up 5% to 9% compared to December quarter 2019», he added.
Meanwhile, Dan Janki, Delta’s CFO, said the company expects total capacity to reach a 91% or 92% recovery in the last three months of this year compared to the same period in 2019. The executive remarked that high inflation and rising fuel costs «felt across the industry», but that improved asset utilisation and efficiency «remain key priorities» in the final stages of full business recovery.
For the final quarter of the year, Delta projects total revenues to increase between 5% and 9%, with an operating margin of 9% to 11%. In addition, it expects earnings per share of between one and 1.25 dollars. Adjusted net debt would reach 22.5 billion dollars.
See also: Delta reports net income of USD 735 million during the second quarter of the year
