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 (NYSE:DAL) 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 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 favorable and Delta is well positioned to deliver significant earnings and free cash flow growth. We expect to grow 2023 revenue by 15 to 20 percent 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 9 percent
Pre-tax income of $1.1 billion with a pre-tax margin of 3 percent
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 percent higher than the December quarter 2019
Operating income of $1.4 billion with an operating margin of 6 percent
Pre-tax income of $1.2 billion with a pre-tax margin of 1 percent
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 percent
Pre-tax income of $1.9 billion with a pre-tax margin of 3.8 percent
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 percent lower than the full year 2019
Operating income of $3.6 billion with an operating margin of 8 percent
Pre-tax income of $2.7 billion with a pre-tax margin of 5.9 percent
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
March Quarter and Full Year Outlook1
1Q23 Forecast FY 2023 Forecast
Total Revenue +14% – 17% vs. 2019 +15% – 20% YoY
Operating Margin 4% – 6% 10% – 12%
Earnings Per Share $0.15 – $0.40 $5 – $6
1 Non-GAAP measures; Refer to Non-GAAP reconciliations for comparison figures
