Delta Air Lines, Inc. (DAL) Beats Earnings Estimates, Meets Revenue

Delta Air Lines, Inc. (DAL) Beats Earnings Estimates, Meets Revenue
By Brian from Toronto, Canada (Delta 767Uploaded by Altair78) [CC BY-SA 2.0], via Wikimedia Commons

Delta Air Lines, Inc. (NYSE:DAL) reported the results from its first quarter this morning, posting adjusted earnings per share of 33 cents on revenue of $8.92 billion. Analysts had been expecting the airline to report earnings of 29 cents per share on $8.92 billion in revenue.

Reported earnings per share were 25 cents.

Qualivian Investment Partners July 2022 Performance Update

stocks performance 1651757664Qualivian Investment Partners performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more Dear Friends of the Fund, Please find our July 2022 performance report below for your review. Qualivian reached its four year track record in December 2021.  We are actively weighing investment proposals. Starting in November Read More

Comparing Delta’s results

The airline posted pre-tax income of $444 million, excluding items—an increase of $363 million over the same quarter a year ago. Net income was $281 million excluding items, which is a $196 million increase in spite of the company’s $163 million in non-cash tax expense which is recognized now after the reversal of Delta’s valuation allowance. GAAP pre-tax income was $335 million, while GAAP net income was $213 million.

Delta Air Lines, Inc. (NYSE:DAL) reported that it cancelled over 17,000 flights in January and February because of severe weather. That’s twice as many flights the airline cancelled in the same quarter a year ago. The company reported $90 million in lost revenue and $55 million in lost pre-tax income as a result of those canceled flights.

The airline also said its results include $99 million in profit sharing expenses. The company generated $951 million in operating cash flow and $390 million in free cash flow. Delta Air Lines, Inc. (NYSE:DAL) said it was able to cut down its adjusted net debt to $9.1 billion, pay over $600  million to its defined benefit pension plans and return to shareholders $176 million in share buybacks and dividends.

Special items included $31 million from domestic fleet restructuring, $21 million mark-to-market adjustment from fuel hedges and $16 million in connection with debt extinguishment and other costs.

Breaking down Delta’s results

Delta Air Lines, Inc. (NYSE:DAL) reported that passenger revenue rose 5% or $357 million year over year. Passenger unit revenue rose 3.2%, including a 1.3% yield improvement. Cargo revenue fell 9% or $21 million because of lower volumes and yields. Other revenue rose 8% or $80 million due to higher revenues from the airline’s joint venture and SkyMiles program.

“March quarter’s top line growth of 5% shows the strength of Delta’s revenue momentum even through the revenue loss from weather and a shift of the Easter holiday traffic into April,” said Delta Air Lines, Inc. (NYSE:DAL) President Ed Bastian in a statement. “We see continued revenue strength as we move through the year from corporate revenue gains, the benefits of the Virgin Atlantic joint venture and improved ancillary revenues. These initiatives, coupled with a solid demand environment, should lead to unit revenue growth in the mid-single digits for the June quarter.”

Updated on

No posts to display