Delta Air Lines (DAL), the largest U.S. carrier by revenue, reported strong financial results for the fourth quarter and full year 2023, beating analysts’ expectations and setting a positive tone for the upcoming earnings season of its peers.
The Atlanta-based airline posted $3.16 per share, for the last three months of 2023 up from $1.28 per share a year ago. Revenue rose 6% to $14.22 billion from a year earlier, driven by robust domestic and international demand.
Looking ahead, Delta expects to grow its earnings to $6 to $7 per share in 2024 and generate free cash flow of $3 to $4 billion, further strengthening its financial foundation. The airline also expects to achieve record revenue in the first quarter of 2024, with solid profitability, as it benefits from an improving domestic environment and continued strength in international demand.
Delta’s results set a high bar for its peers, who will report their earnings in the coming weeks. Analysts expect the U.S. airline industry to recover from the pandemic-induced slump and return to profitability in 2024, as travel demand rebounds and costs are contained. However, some challenges remain, such as labor shortages, inflation pressures, and the emergence of new variants of the coronavirus. Delta’s CEO Ed Bastian said he is confident that the airline can navigate these challenges and continue to lead the industry in 2024 and beyond.
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Delta Air Lines' Q4 results set a positive tone ahead of peers' upcoming reports
Delta Air Lines (DAL), the largest U.S. carrier by revenue, reported strong financial results for the fourth quarter and full year 2023, beating analysts’ expectations and setting a positive tone for the upcoming earnings season of its peers.
Delta’s results set a high bar for its peers, who will report their earnings in the coming weeks. Analysts expect the U.S. airline industry to recover from the pandemic-induced slump and return to profitability in 2024, as travel demand rebounds and costs are contained. However, some challenges remain, such as labor shortages, inflation pressures, and the emergence of new variants of the coronavirus. Delta’s CEO Ed Bastian said he is confident that the airline can navigate these challenges and continue to lead the industry in 2024 and beyond.