Delta Air Lines Inc (DE)

Latest Results (17.12.2024):

Revenue and Profit Growth

In the September quarter of 2024, Delta Air Lines Inc (DE) reported operating revenue of $15.7 billion, marking a significant achievement despite challenges. The company achieved an operating income of $1.4 billion, resulting in an operating margin of 8.9 percent. Pre-tax income stood at $1.6 billion, with a pre-tax margin of 10.0 percent. Earnings per share were reported at $1.97, reflecting strong financial performance for the quarter.

Impact of CrowdStrike Outage

Delta Air Lines Inc (DE) faced a financial impact due to a CrowdStrike-caused outage during the September quarter of 2024. The incident led to a direct revenue impact of approximately $380 million, primarily due to customer refunds and compensation. The outage affected the operating margin by 2.3 percentage points and reduced earnings per share by 45 cents. Despite these challenges, Delta managed to maintain a robust financial position.

Non-GAAP Financial Results

For the September quarter of 2024, Delta Air Lines Inc (DE) reported non-GAAP operating revenue of $14.6 billion. The company achieved an operating income of $1.4 billion, with an operating margin of 9.4 percent. Pre-tax income was $1.3 billion, resulting in a pre-tax margin of 8.6 percent. Earnings per share on a non-GAAP basis were $1.50, showcasing the company's resilience in managing operational disruptions.

Financial Guidance and Outlook

Looking ahead to the December quarter of 2024, Delta Air Lines Inc (DE) anticipates a pre-tax profit growth of 30 percent over the previous year, aiming for $1.4 billion. The company expects total revenue growth of 2 to 4 percent year-over-year, with an operating margin forecasted between 11 to 13 percent. Earnings per share are projected to range from $1.60 to $1.85, indicating a positive outlook for the upcoming quarter.

Balance Sheet and Cash Flow

Delta Air Lines Inc (DE) demonstrated strong cash generation in the September quarter of 2024, with operating cash flow of $1.3 billion. The company made payments on debt and finance lease obligations totaling $263 million, reducing total debt to $17.7 billion by the quarter's end. Delta's balance sheet received an upgrade to investment grade from Fitch, reflecting improved financial stability and a positive outlook for future growth.