Delta expects second-quarter earnings to range from $2.20 to $2.50 per share, while analysts on average expect earnings of $2.23 per share, according to LSEG. The company said sales could rise as much as 7% this fiscal year, beating analysts’ expectations. Delta also reiterated its full-year guidance of $6 to $7 per share and free cash flow of $3 billion to $4 billion.
Executives said business travel improved last quarter and strong demand is likely to continue, citing a 14% increase in corporate travel sales. They pointed to the technology, consumer and financial services sectors as particularly strong.
After going on a hiring spree in response to the pandemic, Delta Air Lines, like other airlines, is slowing its hiring efforts and focusing on efficiency. Bastian told CNBC that the company’s workforce will likely increase by low single digits this year compared to 2023.
Delta shares rose nearly 5% in premarket trading after the earnings release.
Here’s how the company does it executed Comparison to Wall Street expectations based on LSEG consensus estimates for the three months ending March 31st:
- Adjusted earnings per share: Forecast of 45 cents vs. 36 cents.
- Adjusted earnings: $12.56 billion versus the expected $12.59 billion.
The company announced Wednesday that it earned $37 million, or 6 cents per share, in the first three months of this year, up from a loss of $363 million, or 57 cents per share, in the same period a year earlier. Delta’s adjusted earnings were $288 million, or 45 cents per share, up from $163 million, or 25 cents per share, in the first quarter of 2023.
Adjusted for refinery sales, revenue was $12.56 billion, up 6% from a year ago and slightly below analysts’ expectations.
Delta Air Lines’ unit price excluding fuel rose 1.5% year over year. Delta Air Lines said its planes had a record amount of cargo during the quarter, which has traditionally been a slowdown in travel, and domestic revenue rose 3% from a year earlier.
“Growth is normalizing and we are in a period of optimization with a focus on restoring and increasing efficiency in our most profitable core hubs,” Chief Financial Officer Dan Janke said in an earnings call. Ta.
