NYSE$DAL

Delta Air Lines Inc (DE) · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Delta's Q1 2023 earnings were in line with guidance, driven by record revenue and strong demand.

Delta Air Lines reported a strong start to 2023, with revenue and earnings in line with guidance. The company achieved record March quarter revenue and operating cash flow, which enabled accelerated debt reduction. Delta expects record June quarter revenue and reiterates its full-year guidance for significant EPS growth and free cash flow.

  • Delta delivered record March quarter revenue, reflecting strength in demand and momentum in premium products and loyalty revenue.
  • The company expects record June quarter revenue, with an adjusted operating margin of 14 to 16 percent and earnings per share of $2.00 to $2.25.
  • Delta's record March quarter free cash flow of $1.9 billion enabled $1.2 billion of debt repayment.
  • The company is on track to reduce leverage to 3x to 3.5x in 2023 and remains committed to returning to investment grade metrics by next year.

Headline financials

Total Revenue

$12.8B

Previous: $9.35B+36.5%
EPS (adj)

$0.25

Previous: -$1.23+120.3%
Free Cash Flow

-$363M

Previous: -$940M+61.4%
Net Income

-$363M

Previous: -$940M+61.4%
Operating Income

-$277M

Previous: -$783M+64.6%
Gross Profit

-$3.39B

Previous: -$2.72B-24.8%
Cash & Equivalents

$3.22B

Previous: $7.71B-58.3%
Total Assets

$73.1B

Previous: $73.7B-0.8%

Revenue & EPS history

Delta · Revenue · Quarterly

$12.8B

Q1 2023+36.5%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Delta · $470M total across 1 segment · Q1 2021

  • Cargo Revenue
    $470M

Forward guidance

Delta expects to deliver record revenue and an adjusted operating margin of 14 to 16 percent with earnings per share of $2.00 to $2.25 for the June quarter. The company reiterates its full-year guidance for revenue growth of 15 to 20 percent year over year, earnings of $5 to $6 per share and free cash flow of over $2 billion.

Tailwinds

  • Expect record June quarter revenue.
  • Adjusted operating margin of 14 to 16 percent expected for June quarter.
  • Earnings per share of $2.00 to $2.25 expected for June quarter.
  • Full-year revenue growth of 15 to 20 percent year over year.
  • Full-year earnings of $5 to $6 per share.

Headwinds

  • Non-fuel unit costs are expected to be 1 to 3 percent higher year over year for the June quarter.
  • Ability to deliver unit cost declines in the second half of 2023.
  • Achieving industry-leading operating margins of 10 to 12 percent for the full year.
  • Impact of incurring significant debt in response to the COVID-19 pandemic.
  • Changes in the cost of aircraft fuel.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.3%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+3.0%

Avg return

30 days after

61%

42 / 69 earnings

Positive

+23.4%

Q1 2025

Best reaction

-11.3%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.8%+2.2%+11.8%
Q4 2025-2.6%-0.8%-2.2%
Q3 2025+4.3%+7.3%+3.1%
Q2 2025-0.8%+1.8%+0.8%
Q1 2025+23.4%+12.3%+34.7%
Q4 2024+6.0%+6.6%+10.9%
Q3 2024+0.7%+3.4%+19.8%
Q2 2024-6.9%-1.8%-16.1%
Q1 2024+0.7%-1.4%+11.2%
Q4 2023-11.3%-12.1%-4.1%
Q3 2023-5.2%-3.6%-5.3%
Q2 2023-3.0%+0.9%-7.9%
Q1 2023+0.1%+4.8%-1.5%
Q4 2022-3.4%-3.1%-3.6%
Q3 2022+6.4%+10.1%+21.3%
Q2 2022-4.2%+0.2%+11.0%
Q1 2022+9.7%+9.1%-0.8%
Q4 2021-0.7%-2.6%+4.2%
Q3 2021-5.4%-5.8%-3.0%
Q2 2021+0.0%-6.7%-3.5%
Q1 2021-3.2%-7.7%-3.9%
Q4 2020-1.2%-0.3%+7.0%
Q3 2020-2.7%-3.6%+5.3%
Q2 2020+6.6%+0.9%+7.0%
Q1 2020-2.7%-4.1%-1.8%
Q4 2019+3.6%+4.3%-0.6%
Q3 2019-1.8%-0.5%+6.8%
Q2 2019+3.7%+6.2%+0.1%
Q1 2019+2.5%+0.9%-0.6%
Q4 2018-0.5%+0.8%+5.7%
Q3 2018+4.7%+6.8%+14.0%
Q2 2018+1.9%+2.6%+9.8%
Q1 2018+2.8%+6.0%+2.8%
Q4 2017+7.1%+6.2%-9.7%
Q3 2017+0.8%+1.7%-7.2%
Q2 2017-0.6%-2.7%-10.8%
Q1 2017-2.8%-2.1%+8.2%
Q4 2016-0.4%-2.2%-4.2%
Q3 2016+2.0%+0.5%+18.1%
Q2 2016+1.1%+2.5%-8.1%
Q1 2016-1.1%
Q4 2015+2.7%
Q3 2015+2.5%
Q2 2015+1.9%
Q1 2015+4.4%
Q4 2014+7.3%
Q3 2014+6.2%
Q2 2014+1.0%
Q1 2014+5.1%
Q4 2013+5.7%
Q3 2013+3.7%
Q2 2013+5.0%
Q1 2013+8.8%
Q4 2012+1.2%
Q3 2012-5.0%
Q2 2012+0.9%
Q1 2012-0.8%
Q4 2011+0.3%
Q3 2011-3.8%
Q2 2011-4.9%
Q1 2010+7.1%
Q1 2011-1.2%
Q4 2008-1.7%
Q4 2010-1.7%
Q3 2009+1.1%
Q3 2010+1.1%
Q4 2009+2.3%
Q2 2009+2.3%
Q2 2010+2.3%

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