Key takeaways from Delta Air Lines’ (DAL) Q4 2023 earnings report

Shares of Delta Air Traces (NYSE: DAL) plunged over 8% on Friday after the corporate delivered better-than-expected earnings outcomes for the fourth quarter of 2023 however lowered its full-year steerage. The inventory has gained 13% over the previous three months. Listed below are the important thing takeaways from the airline’s This autumn earnings report:

Quarterly numbers

Delta reported working income of $14.2 billion for the fourth quarter of 2023, which was up 6% from the identical quarter a yr in the past and forward of estimates of $13.5 billion. Adjusted working revenues elevated 11% to $13.7 billion. GAAP web earnings greater than doubled from final yr to $2 billion, or $3.16 per share. Adjusted EPS fell 14% year-over-year to $1.28 however surpassed projections of $1.16.

Enterprise efficiency

In This autumn, Delta continued to see sturdy demand for leisure and enterprise journey, with vacation journey volumes reaching a document. Company gross sales noticed double-digit year-over-year development within the month of December. In its earnings report, Delta said that, primarily based on outcomes from a latest company survey, 93% of firms surveyed anticipate their journey volumes to extend sequentially or keep the identical within the March quarter and into 2024.

Passenger income elevated 12% YoY to $12.1 billion within the fourth quarter. Cargo income was down 24%. Delta is seeing sturdy demand for worldwide journey, with worldwide passenger income rising 25% in This autumn over final yr.

Whole income per obtainable seat mile (TRASM) was down 8% in This autumn whereas capability was up 15%. Passenger income per obtainable seat mile (PRASM) was down 3% and passenger load issue was 84%. CASM-ex was up 1.1% whereas common gasoline value per gallon was $3.01, down 8% YoY.

Outlook

Delta sees sturdy journey demand in 2024. The corporate expects whole income for the primary quarter of 2024 to be up 3-6% YoY. EPS is predicted to vary between $0.25-0.50 for the quarter. Unit revenues for the March quarter are anticipated to be flat to down 3% over the prior-year interval.

For the complete yr of 2024, Delta expects EPS to vary between $6-7. This compares to the corporate’s earlier steerage given in its FY2022 report the place it said it was on monitor to realize greater than $7 of EPS in 2024.