Delta Air Lines (DAL) Q4 2023 earnings summary

Executive summary

• FY2023 adjusted revenue reached a record $54.7B, up 20% YoY, with adjusted pre-tax income of $5.2B and EPS of $6.25.

• Strong operations, premium and loyalty revenue, and international demand supported results; FY2024 guidance targets EPS of $6–$7 and free cash flow of $3–$4B.

Financial highlights

• Q4 GAAP revenue was $14.2B, operating income $1.3B, pre-tax income $2.3B, and diluted EPS $3.16; adjusted revenue was $13.7B, up 11% YoY, with EPS of $1.28.

• FY2023 GAAP revenue was $58.0B, operating income $5.5B, and diluted EPS $7.17; adjusted operating income was $6.3B, with an 11.6% margin.

• Adjusted FY operating cash flow was $7.2B and free cash flow $2.0B; gross capital expenditures were $5.3B.

Outlook and guidance

• FY2024 adjusted EPS forecast: $6–$7; free cash flow: $3–$4B; adjusted debt to EBITDAR: 2x–3x.

• Q1 2024 adjusted revenue forecast: up 3%–6% YoY; operating margin ~5%; EPS $0.25–$0.50.

• Q1 unit revenue is expected flat to down 3% YoY, with a two-point sequential improvement at the midpoint; non-fuel unit costs are expected up low-single digits for FY2024.

• FY2024 free cash flow improvement is expected to come from earnings growth, lower capital expenditures, and a higher mix of cash sales.