The company on Friday expected adjusted earnings of $6 to $7 per share in 2024, lower than the more than $7 per share the airline projected last year. Delta’s 2023 adjusted earnings were $6.25 per share.
“Business is good. We can go to any airport,” Bastian said in an interview with CNBC.
Delta Air Lines said it expects revenue to increase 3% to 6% year-over-year in the first quarter of 2024. LSEG (formerly Refinitiv) said the company’s earnings per share are expected to be between 25 cents and 50 cents, within the range expected by analysts.
Winter is usually one of the slowest times for air travel. Airlines have also weathered increases in expenses such as refrigerated freight, fuel and labor costs.
Delta Air Lines was the first major U.S. airline to report fourth-quarter results.
The company’s results are as follows. 3 months ended December 31st Wall Street expectations and comparisons based on LSEG consensus estimates:
- Adjusted earnings per share: $1.28 vs. $1.17 expected.
- Adjusted earnings: $13.66 billion versus the expected $13.52 billion.
Delta Air Lines reported net income of $2.04 billion for the final three months of 2023, up from $828 million in the year-ago period. Sales increased 6% year-on-year to $14.22 billion.
Excluding one-time items, Delta’s adjusted revenue was $13.66 billion, slightly above LSEG’s expectations. Adjusted earnings per share for the fourth quarter were $1.28, beating analysts’ expectations of $1.17.
Delta President Glenn Hauenstein said in a news release that the airline has seen strong demand for international travel, outpacing U.S. airline revenue, but has recently seen “positive changes” in domestic travel. Stated. Some airlines have struggled in recent months with an overcapacity on domestic flights, forcing them to offer discounts on off-peak fares.
Major U.S. airlines, including Delta Air Lines, have benefited from a sprawling international network that sold many big-ticket tickets last year.
Overall, last quarter saw a record number of people paying for Delta’s high-priced cabins, such as first class and premium economy, with revenue from premium cabins increasing 15% and standard revenue growth from coach seating exceeded 10%.
But Bastian said the airline still faces challenges in the aerospace supply chain for parts and repairs.
“It’s taking time to repair the plane, and it’s taking time to get it back into service,” he said. Aircraft repair and parts supply chains are “the largest area of the business that has not returned to pre-pandemic performance levels.”
The airline industry has been rocked in recent days after a door plug on an Alaska Airlines Boeing 737 Max 9 jet flew off at an altitude of about 16,000 feet. The Federal Aviation Administration grounded the Boeing planes the next day.
Delta Air Lines does not have any Max 9s in its fleet, but it has ordered dozens of 737 Max 10s, which have not yet been certified by the FAA. It is not yet clear whether the Alaska incident will cause further delays in Max 10 certification.
Delta Air Lines on Friday announced an expected order for 20 wide-body Airbus A350-1000 aircraft, with deliveries expected to begin in 2026.