Delta Air Lines revenue hits $54.7 billion
Delta Air Lines last year recorded over $ 5 billion of pre-tax income, a near doubling over 2022; guiding to 2024 free cash flow of $3 to $4 billion, and an improvement of up to $2 billion over 2023.
This was contained in the reported financial results of the Airline for the December quarter and full year 2023 which also provided its outlook for the March quarter and full year 2024.
A press release issued by Kingdom Concepts Consult Accra to the Daily Graphic stated that Delta delivered industry-leading operational performance and financial results in the December quarter.
The CEO of Delta Airlines, Ed Bastian, said 2023 was a great year for Delta.
“Our people and their commitment to deliver unmatched service excellence for our customers is at the foundation of Delta's success.”
“We are thrilled to recognise their outstanding work with $1.4 billion in profit sharing payments next month," he said.
He added that, “in 2024, demand for air travel remains strong and our customer base is in a healthy financial position with travel a top priority. We expect to grow full year earnings to $6 to $7 per share and generate free cash flow of $3 to $4 billion, further strengthening our financial foundation.”
Delta's president, Glen Hauenstein, said with industry-leading operational performance and best-in-class service delivered by workers of Delta, more customers than ever are choosing Delta.
“In 2023, we delivered a record $54.7 billion in revenue, 20 per cent higher than 2022. Premium and non-ticket revenue has reached 55 per cent of total revenue, supporting Delta's differentiated financial results from the industry,” he said.
He added that, “with strong demand for international travel and a positive inflection in the domestic environment, we expect March quarter adjusted revenue to be three to six per cent higher than the prior year”.
Mr Hauenstein said: “With our outlook for continued revenue growth, we expect March quarter unit revenues to be flat to down 3 per cent over 2023.”
“The midpoint of this outlook implies a two-point sequential improvement in unit revenues on a year-over-year basis.”
“The March quarter includes a headwind from higher international mix, the normalisation of travel credit utilisation and lapping a competitor's operational challenges in the year ago period,” he said.
The statement also noted that Delta had announced that it reached an agreement with Airbus to purchase 20 A350-1000s, with options for 20 additional wide-body aircraft.
“Deliveries of the aircraft are scheduled to begin in 2026. In addition to improved fuel efficiency, these aircraft will add higher gauge, more premium seating and greater cargo capabilities to the international widebody fleet,” it stated.
The statement added that “the company also announced a service agreement with Rolls Royce to service its Trent XWB-97 engines. The order for the aircraft is within Delta's previously announced capital expenditure and capacity targets”.