Delta Air Lines announces December quarter and full year 2022 profit

• Generated double-digit operating margin in December quarter with EPS ahead of guidance
• Expect March quarter revenue to accelerate further relative to 2019
• Reiterating outlook for significant earnings and cash flow growth in 2023, including EPS of $5 – $6 and free cash flow of more than $2 billion

Delta Air Lines today reported financial results for the December quarter and full year 2022 and provided its outlook for the March quarter 2023. Highlights of the December quarter and full-year 2022 results, including both GAAP and adjusted metrics, are on page five of the full release and are incorporated here.

“Delta people rose to the challenges of 2022, delivering industry-leading operational reliability and financial performance, and I’m looking forward to recognizing their achievements with over $500 million in profit-sharing payments next month,” said Ed Bastian, Delta’s chief executive officer.  “As we move into 2023, the industry backdrop for air travel remains favourable, and Delta is well positioned to deliver significant earnings and free cash flow growth. We expect to grow 2023 revenue by 15-20% and improve unit costs year-over-year, supporting a full-year outlook for earnings of $5 to $6 per share and keeping us on track to achieve more than $7 of earnings per share in 2024.”

December Quarter 2022 GAAP Financial Results

• Operating revenue of $13.4 billion
• Operating income of $1.5 billion with an operating margin of 10.9%
• Pre-tax income of $1.1 billion with a pre-tax margin of 8.3%
• Earnings per share of $1.29
• Operating cash flow of $1.2 billion
• Payments on debt and finance lease obligations of $285 million

December Quarter 2022 Adjusted Financial Results

• Operating revenue of $12.3 billion, 8% higher than the December quarter 2019
• Operating income of $1.4 billion with an operating margin of 11.6%
• Pre-tax income of $1.2 billion with a pre-tax margin of 10.1%
• Earnings per share of $1.48
• Operating cash flow of $1.2 billion

Full Year 2022 GAAP Financial Results

• Operating revenue of $50.6 billion
• Operating income of $3.7 billion with an operating margin of 7.2%
• Pre-tax income of $1.9 billion with a pre-tax margin of 3.8%
• Earnings per share of $2.06
• Operating cash flow of $6.4 billion
• Payments on debt and finance lease obligations of $4.5 billion
• Total debt and finance lease obligations of $23.0 billion at year end

Full Year 2022 Adjusted Financial Results

• Operating revenue of $45.6 billion, 2% lower than the full year 2019
• Operating income of $3.6 billion with an operating margin of 7.8%
• Pre-tax income of $2.7 billion with a pre-tax margin of 5.9%
• Earnings per share of $3.20
• Operating cash flow of $6.2 billion
• Free cash flow of $244 million
• $9.4 billion in liquidity* and adjusted net debt of $22.3 billion at year end

*Includes cash and cash equivalents, short-term investments and undrawn revolving credit facilities