Delta Air Lines, Inc. (NYSE:DAL) revised its FY23 outlook and reiterated its FY24 targets in its Investor Day 2023 presentation.
The airline mentioned that the air travel revenue is returning to Long-Term Trend, with Industry Revenue to, from and within U.S. as % of GDP.
The historical average was 1.3%, for 2022 it reached 1.2%, and for FY23 it is estimated to reach 1.3%.
2Q23 Outlook, raised: Delta Air Lines expects revenue growth of 17%-18% (prior view 15% – 17%). Sees Capacity YoY +17% and Non-Fuel CASM +1%-3%.
It sees EPS of $2.25-$2.50 (prior $2.00 – $2.25) vs. $2.17 consensus; and an operating margin of 16% (prior 14% – 16%).
FY23 Outlook, revised: Delta Air Lines expects revenue growth of +17%-20% (prior view 15% – 20%). Sees Capacity YoY +17%; Non-Fuel CASM flat.
DAL sees EPS of $6 (prior view $5 to $6) vs. $5.81 consensus; operating margin top-end of 10%-12% (prior view 10% – 12%); and free cash flow of $3 billion (prior more than $2 billion).
Also Read: US Airlines 2Q23 Earnings Preview: Exploring Upsides Amid Lowered Fuel Forecasts and Robust Summer Demand
FY24 Outlook, reiterated: Delta Air Lines sees EPS above $7 and an operating margin of 13%-15%.
It expects Capacity to be up mid-single-digits and Non-Fuel CASM to be down low single-digits.
The airline expects the supply constraints to continue for FY23.
Price Action: DAL shares are trading higher by 0.79% at $43.48 premarket on Tuesday.
