Delta Air Lines (DAL) Q2 2024 earnings summary

Executive summary

• Record June quarter revenue reached $16.7B, up 7% year-over-year, with adjusted pre-tax income of $2B and operating margin of 15%, though operating income fell to $2.3B due to higher costs.

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

• Free cash flow for the quarter was $1.3B, with liquidity of $7.2B as of June 30, 2024.

• Quarterly dividend increased by 50%, with $640M accrued for profit sharing and continued focus on debt reduction.

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

Financial highlights

• Adjusted operating revenue was $15.4B, up 5.4% year-over-year; total Q2 revenue was $16.7B (+7%), with operating expenses up 10%.

• Premium revenue grew 10%, loyalty revenue up 8%, and cargo revenue increased 16% year-over-year.

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

• Non-fuel CASM increased 0.6% year-over-year, outperforming guidance.

• Operating cash flow for the first half was $4.9B, with $2.7B in free cash flow after $2.3B reinvestment.

Outlook and guidance

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

• September quarter guidance: operating margin of 11–13%, pre-tax profit of ~$1.5B, EPS of $1.70–$2.00, and revenue growth of 2–4%.

• 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 $5B, mainly for aircraft and technology enhancements.

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