Delta Air Lines (DAL) Q2 2024 earnings summary

Executive summary

• Record quarterly revenue reached $16.7 billion, up 7% year-over-year, with a 15% operating margin and $2 billion pre-tax income on an adjusted basis.

• Net income for Q2 2024 was $1.3 billion, with diluted EPS of $2.01, and adjusted EPS of $2.36.

• Free cash flow for Q2 2024 was $1.3 billion, with liquidity of $7.2 billion as of June 30, 2024.

• Recognized for operational excellence, industry leadership, and multiple awards for reliability and customer satisfaction.

• Announced a 50% increase to the quarterly dividend, reflecting strong cash generation and balance sheet progress.

Financial highlights

• Adjusted operating revenue was $15.4 billion, up 5.4% year-over-year; total Q2 2024 revenue was $16.7 billion, up 7%.

• Adjusted operating income was $2.3 billion with a 14.7% margin.

• Premium revenue grew 10% year-over-year, loyalty revenue up 8%, and American Express remuneration up 9% to $1.9 billion.

• Cargo revenue increased 16% year-over-year.

• Domestic passenger revenue rose 5%, international passenger revenue up 4%, and Pacific region up 23%.

Outlook and guidance

• September quarter guidance: double-digit operating margin, pre-tax profit of ~$1.5 billion, EPS of $1.70–$2.00, and revenue growth of 2–4% year-over-year.

• Full-year 2024 guidance reaffirmed: EPS of $6–$7, free cash flow of $3–$4 billion, and leverage of 2.5x.

• Capacity growth for September quarter expected at 5–6%, with non-fuel unit costs to rise 1–2% year-over-year.

• Full-year CapEx expected to be $5 billion.

• Management expects to meet liquidity needs for the next 12 months with current cash, investments, and operations.