Delta Air Lines (NYSE: DAL) yesterday reported financial results for the June quarter and provided its outlook for the September quarter. Highlights of the June quarter, including both GAAP and adjusted metrics, are on page five of the full release and incorporated here.

“Thanks to the incredible work of our 100,000 people, Delta is delivering industry-leading operational performance and best-in-class service for our customers. We delivered record June quarter revenue and pre-tax income of $2 billion with a 15 percent operating margin.

Our people are the best in the industry, and we are pleased to recognize their efforts with more than $640 million accrued in the first half toward next year's profit sharing,” said Ed Bastian, Delta’s chief executive officer.

“For the September quarter, we expect a double-digit operating margin and a pre-tax profit of approximately $1.5 billion. With strong first-half results and visibility into the second half, we remain confident in our full-year guidance."

June Quarter 2024 GAAP Financial Results
•Operating revenue of $16.7 billion

•Operating income of $2.3 billion with an operating margin of 13.6 percent

•Pre-tax income of $1.8 billion with a pre-tax margin of 10.6 percent

•Earnings per share of $2.01

•Operating cash flow of $2.5 billion

•Payments on debt and finance lease obligations of $1.4 billion

•Total debt and finance lease obligations of $18.0 billion at quarter end
June Quarter 2024 Adjusted Financial Results

•Operating revenue of $15.4 billion, 5.4 percent higher than the June quarter 2023

•Operating income of $2.3 billion with an operating margin of 14.7 percent

•Pre-tax income of $2.0 billion with a pre-tax margin of 13.0 percent

•Earnings per share of $2.36

•Operating cash flow of $2.5 billion

•Free cash flow of $1.3 billion

•Adjusted debt to EBITDAR of 2.8x, down from 3.0x at the end of 2023

•Return on invested capital of 13.1 percent



Revenue Environment and Outlook

“Peak summer travel demand remains strong and Delta is delivering elevated experiences for our customers. Consistent with our guidance, we generated record June quarter revenue 5.4 percent higher than the prior year.

Diverse revenue streams, including premium and loyalty, contributed higher growth and margins, underpinning. Delta’s industry-leading financial performance and increasing our financial durability,” said Glen Hauenstein, Delta’s president.

“As our international network and core hubs approach full restoration and we return to a normal cadence of retiring aircraft, Delta’s capacity growth is decelerating into the second half. We expect September quarter capacity growth of 5 to 6 percent and revenue growth of 2 to 4 percent, with sequential improvement in unit revenue trends through the quarter.”

•Record June quarter revenue with leading operational performance: Delta delivered June quarter revenue that was 5.4 percent higher than 2023, driven by strong demand and best-in-class operations. Year to date, Delta has led the industry in completion factor and on-time performance, and operated 39 cancel-free, brand-perfect days. Adjusted total unit revenue (TRASM) was down 2.6 percent from the prior year.

•Revenue diversification driving Delta's differentiation: Premium, loyalty and other diversified revenue streams comprised 56 percent of total revenue. Premium revenue grew 10 percent versus the June quarter 2023, with premium unit revenues positive year-over-year. Loyalty revenue was up 8 percent, driven by co- brand spend growth and increasing premium card mix. Remuneration from American Express for the June quarter was $1.9 billion, approximately 9 percent higher than 2023. Cargo revenue grew 16 percent year-over-year, a significant improvement from prior trends.

•Corporate travel demand grew at double-digit levels: Managed corporate travel volumes* have grown double-digits for six consecutive months, with broad-based demand as all sectors increased year-over-year. Recent corporate survey results indicate that 90 percent of companies expect their travel volumes to increase or stay the same in the September quarter and beyond.

•International performance built on record 2023: International passenger revenue was 4 percent higher than June quarter of 2023. Demand across the Transatlantic remains very strong, with unit revenue in line with last year's record performance excluding the impact from the summer Olympics in Paris. Pacific and Latin America accounted for the majority of international capacity growth on continued network restoration and improving connectivity with our JV partners.

Read the full report here