• Record quarterly revenue and second consecutive quarter of double-digit operating margin
• Returned operations to industry-leading reliability
• Expect December quarter revenue recovery to accelerate relative to 2019
• On track to achieve 2024 targets of over $7 adj. EPS and $4 billion of free cash flow
Delta Air Lines (NYSE:DAL) today reported financial results for the September quarter 2022 and provided its outlook for the December quarter 2022. Highlights of the September quarter 2022 results, including both GAAP and adjusted metrics, are on page five of the full release and are incorporated here.
“Thanks to the incredible work of our entire team, Delta delivered a strong September quarter with record quarterly revenues and a double-digit operating margin. The travel recovery continues as consumer spend shifts to experiences and demand improves in corporate and international,” said Ed Bastian, Delta’s chief executive officer. “In this environment, we expect December quarter revenue growth to accelerate versus 2019 with an operating margin of approximately 10 percent.”
“With strong demand and a return to best-in-class operational performance, we are ahead of our plan for the year on profitability and expect to be free cash flow positive. We’re working towards full network restoration by summer of 2023, which supports a meaningful step up in profitability and cash flow next year on our path to earn over $7 of EPS and $4 billion of free cash flow in 2024,” Bastian said.
September Quarter 2022 GAAP Financial Results
Operating revenue of $14.0 billion
Operating income of $1.5 billion with an operating margin of 10.4 percent
Earnings per share of $1.08
Operating cash flow of $869 million
Payments on debt and finance lease obligations of $1.8 billion
Total debt and finance lease obligations of $23.2 billion at quarter end
September Quarter 2022 Adjusted Financial Results
Operating revenue of $12.8 billion, 3 percent higher than September quarter 2019, including a $35 million impact from Hurricane Ian
Operating income of $1.5 billion with an operating margin of 11.6 percent
Earnings per share of $1.51, including a 3¢ impact from Hurricane Ian
$11.2 billion in liquidity* and adjusted net debt of $20.5 billion at quarter end
*Includes cash and cash equivalents, short-term investments and undrawn revolving credit facilities
