Delta Air Lines’ Revised Financial Guidance for 2023 and 2024

Delta Air Lines Inc. has raised guidance for 2023 and reiterated its guidance for 2024 in a presentation that was released ahead of the analyst day held on Tuesday.

Strong Earnings and Cash Flow Growth for 2023

Delta has raised its 2023 per-share earnings range to $5 to $6, with an expectation that earnings will come in at the top end of that range. Additionally, it expects free cash flow to total $3 billion, up from a previous forecast of $2 billion. Notably, Delta is also expecting a return on invested capital of more than 13%, compared with earlier guidance of low double-digit growth.

Positive Outlook for Operating Margin

Delta is confident that its operating margin will come in at the high end of its 10% to 12% guidance range, further reflecting the company’s positive financial position and strong growth potential.

Continued Growth for 2024

While reaffirming its 2024 guidance, Delta has maintained a bullish outlook for its future growth. Deltais expecting EPS of over $7, free cash flow of more than $4 billion, an operating margin of 13% to 15%, and ROCI in the mid-teens for 2024. This consistent positive news has increased investors’ optimism regarding the company’s financials and outlook.

Strong Revenue Outlook for Q2 and All of 2023

The company has also raised its revenue outlook for Q2 to a rise of 18% to 18%, versus previous guidance of 15% to 17%. For all of 2023, Delta expects revenue to climb by 17% to 20%, compared with earlier guidance of 15% to 20%.

Delta’s stock has already risen by 31% in the year-to-date period, outpacing the gains of both the US Global JETS ETF and the S&P 500 Index. This has made Delta an attractive prospect for investors seeking stability in the airline industry.

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