Delta Air Lines Sees Revenue Growth In Q2, Backs FY24 View; Stock Up In Pre-market- Update

(RTTNews) - While announcing a profit in its first quarter with higher revenues, Delta Air Lines Inc. (DAL, DALRQ.PK) on Wednesday issued second-quarter outlook, and also reiterated fiscal 2024 forecast.

In pre-market activity on the NYSE, Delta shares were gaining around 5 percent to trade at $49.68.

For the second quarter, the company projects earnings of $2.20 to $2.50 per share and operating margin of 14% to 15%, with total revenue growth of 5% to 7% from last year.

Analysts on average expect the company to report earnings of $2.25 per share for the quarter, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

For fiscal 2024, the company continues to project earnings of $6 to $7, while the Street is looking for $6.46 per share.

Ed Bastian, Delta's chief executive officer, said, "For the March quarter, we delivered record revenue on outstanding operational performance, enabling strong earnings growth. We anticipate continued strong momentum for our business, and in the June quarter, we expect to deliver record revenue, a mid-teens operating margin and earnings of $2.20 to $2.50 per share. We remain confident in our full year targets for earnings of $6 to $7 per share and free cash flow of $3 to $4 billion."

The company further said it expects to repay at least $4 billion of debt this year and are on track to improve full year leverage.

In its first quarter, Delta's earnings were $37 million, compared to prior year's loss of $363 million. Earnings per share were $0.06, compared to loss of $0.57 per share in the same period last year.

Adjusted earnings were $288 million or $0.45 per share for the period, compared to $125 million or $0.25 per share last year, while analysts projected $0.35 per share.

Revenue for the quarter grew to $13.75 billion from prior year's $12.76 billion.

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