Misses Earnings by ~1% & Beats Revenue Expectations by ~6%
Total Revenue: ~$16.7 Bn, up 7% YoY, up 33% QoQ
Net earnings: ~$1.3 Bn, down 29% YoY, up 3422% QoQ
Shares down ~8% after results
Key Takeaways:
Hiring Slowdown: Post-pandemic hiring surge slows, with headcount expected to increase by low single digits YoY.
Cost per available seat mile (CASM): $19.28, up 2% YoY, down 4% QoQ
Repaid $1.4Bn of debt and generating $1.3Bn in free cash flow
Earnings Forecast: Q3 revenue growth projected at 2% to 4% YoY
CEO Ed Bastian on Future Outlook:
“Thanks to the incredible work of our 100,000 people, Delta is delivering industry-leading operational performance and best-in-class service for our customers,” indicating strong bookings for leisure and business travel amidst inflation.
“Growth is normalizing and we are in a period of optimization, with a focus on restoring our most profitable core hubs and delivering efficiency gains,” adds CFO Dan Janki, highlighting strategic focus areas.
