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Our March quarter faces headwinds from 3 dynamics when compared to last year. These include higher international mix, the normalization of travel credit utilization and lapping our competitors' operational challenges.
march quartter headwjns
Transcript
2023 Q4
14 Jan 24
We expect March quarter revenue growth of 3% to 6% over 2023 on capacity growth of 6%, which includes 1 point from Leap Day implying unit revenues will be flat to down 3% over last year. This is a 2-point sequential improvement on a year-over-year basis from the December quarter.
rev q1 up 3-6%
Transcript
2023 Q4
14 Jan 24
we plan to grow Delta's capacity 3% to 5%, below the mid-single-digit range that we discussed at our June Investor Day as we've refined our plan. Domestically, supply and demand are coming into better balance as the industry adjusts to rising cost of production, and we are seeing a positive inflection in domestic unit revenue growth. Internationally, we expect another strong year as we optimize our network and leverage our global JV partners.
expanding capacity less than previously estimated
Transcript
2023 Q4
14 Jan 24
We expect demand to remain strong particularly for the premium experiences that Delta provides. Consumer spend is continuing to shift from goods to services and our customer base is in a healthy financial position with travel remaining a top priority and corporate travel continues to improve with demand accelerating into year-end.
On supply, industry growth is normalizing after several years of network restoration
shift to services continudes
Transcript
2023 Q4
14 Jan 24
For the full year, we reported earnings of $6.25 per share, the second highest EPS result in our history on revenue that was 20% higher than the prior year. We delivered an 11.6% operating margin and pretax income of $5.2 billion, a near doubling over 2022.
slightly better than guidance
Transcript
2023 Q4
14 Jan 24
Moving to fuel. Fuel prices have moved higher since July, adding roughly $400 million of expense to our outlook for the second half of the year.
fuel costs added 400m to expense outlolok
Transcript
2023 Q3
13 Oct 23
As we discussed in September, there are 3 drivers to higher maintenance: first, investment in fleet health; second, expanded work scope on our 757 engine fleet; and third, challenges across the supply chain.
On fleet health and reliability, our investments are starting to deliver improved operational performance.
Our September metrics were ahead of August and October is ahead of September.
On the 757 engine, a workhorse in our fleet, we're going through a wave of overhauls. The engines we took off-wing over the summer required larger work scope and a higher mix of new parts.
Looking forward, we are forecasting higher new material consumption rates.
On supply chain, the industry continues to face challenges that will take time to work through. Engine and airframe turnaround times remain elevated, driving inefficiency and impacting productivity.
We are working closely with our partners and leveraging our deep expertise in TechOps to manage supply chain challenges.
highr maintenance costs
Transcript
2023 Q3
13 Oct 23
But it's healthy to see and it's one of the distinguishing factors between us and some of the carriers that are on the other end of the fare spectrum.
not spirit !
Transcript
2023 Q3
13 Oct 23
And when we have rapid fuel price run-ups, it usually takes a few quarters for that to roll into the industry realized fares. But historically, it's always worked.
can they pass in price increass?
Transcript
2023 Q3
13 Oct 23
Right, right.
I think what domestic strength is really coming from the premium products domestically. A
domestic strength i premium
Transcript
2023 Q3
13 Oct 23
it will be in the latter half of 2024 based on the analysis that we've gotten so far from Pratt. We're still waiting on the full analysis related to the 220 fleet. That should be coming later this month and we will assess that impact appropriately.
As it relates to MRO, Pratt is certainly a close partner of ours and an important one as it relates to that third-party capability. And we will certainly support their efforts. We're working closely with them on that.
gtf discussion
Transcript
2023 Q3
13 Oct 23
Capacity in the fourth quarter is expected to be up 14% to 15%, implying total unit revenues down 2.5% to 4.5% versus prior year.
unit revenue dwn in q4
Transcript
2023 Q3
13 Oct 23
nternational passenger revenue grew 35%, with the Transatlantic and Pacific outperforming our already high expectations. We delivered record margins across all international entities this summer and strength is continuing through the fall.
Demand for our premium products is very strong with revenue up 17% over prior year, outperforming main cabin by 5 points. Domestic paid load factor in our first-class cabins was a record as we continue to advance our premium merchandising and upsell capabilities. Delta Premium Select has now been rolled out to over 85% of long-haul flights, and the revenue generation from this product has been above expectations and a key contributor to our record international margins.
Business travel continues to steadily improve as corporates continue with return-to-office initiatives. Less recovered sectors like technology and financial services saw a double-digit growth during the quarter. A recent corporate survey indicates continued growth in business demand with a significant majority of companies expecting their travel to stay the same or increase as we move into 4Q and into '24.
corporare travel and premium in good shaoe
Transcript
2023 Q3
13 Oct 23
nternational passenger revenue grew 35%, with the Transatlantic and Pacific outperforming our already high expectations. We delivered record margins across all international entities this summer and strength is continuing through the fall.
Demand for our premium products is very strong with revenue up 17% over prior year, outperforming main cabin by 5 points. Domestic paid load factor in our first-class cabins was a record as we continue to advance our premium merchandising and upsell capabilities. Delta Premium Select has now been rolled out to over 85% of long-haul flights, and the revenue generation from this product has been above expectations and a key contributor to our record international margins.
Business travel continues to steadily improve as corporates continue with return-to-office initiatives. Less recovered sectors like technology and financial services saw a double-digit growth during the quarter. A recent corporate survey indicates continued growth in business demand with a significant majority of companies expecting their travel to stay the same or increase as we move into 4Q and into '24.
corporare travel and premium in good shaoe
Transcript
2023 Q3
13 Oct 23
We expect our December quarter revenues to be 10% higher than 2022 with a 10% operating margin and earnings of over $1 per share. This brings our expectation for full year earnings to over $6 per share on a double-digit operating margin and free cash flow of $2 billion.
Since raising full year guidance over the summer, our revenue outlook has improved, though earnings and cash flow have been impacted by higher fuel and maintenance costs. Revenue for the full year is expected to increase 20% over last year, which was the high end of our expectations on steady domestic demand and continued strength in international. With strong top line growth and margin expansion, we expect to double earnings year-over-year and deliver a 13% return on invested capital.
Our outlook for 2023 keeps revenue, earnings, cash flow and debt reduction on track with our 3-year plan, which we issued in December of '21.
guidajce change
Transcript
2023 Q3
13 Oct 23
We expect our December quarter revenues to be 10% higher than 2022 with a 10% operating margin and earnings of over $1 per share. This brings our expectation for full year earnings to over $6 per share on a double-digit operating margin and free cash flow of $2 billion.
Since raising full year guidance over the summer, our revenue outlook has improved, though earnings and cash flow have been impacted by higher fuel and maintenance costs. Revenue for the full year is expected to increase 20% over last year, which was the high end of our expectations on steady domestic demand and continued strength in international. With strong top line growth and margin expansion, we expect to double earnings year-over-year and deliver a 13% return on invested capital.
Our outlook for 2023 keeps revenue, earnings, cash flow and debt reduction on track with our 3-year plan, which we issued in December of '21.
guidajce change
Transcript
2023 Q3
13 Oct 23
With our second quarter performance and our third quarter outlook, we now the full year earnings to be $6 to $7 per share and an operating margin greater than 12% and free cash flow of $3 billion
guidance 2023
Transcript
2023 Q2
14 Jul 23
And we lose sight of the fact that our economy is 20% plus or minus larger than it was in 2019.
So what you're talking about actually is there is a lot of room to improve for corporate America on travel. And I think that's part of the underpinning why we think there's going to -- you're going to continue to see some steady improvement here this fall, and you're hearing it from the travel managers as well.
economy 20% larger than 2019
Transcript
2023 Q2
14 Jul 23
We will most likely some point next year, hopefully the first half of the year have our updated long-term plan conversation where we can talk about where we see the long-term financial targets for the company going
will upfdate lt guidance -- conservsyive
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2023 Q2
14 Jul 23
from $2 billion to $3 billion. $3 billion is the number for this year. And we expect as part of our three-year plan, we said that we'd be at $4 billion or greater in 2024
more tha 4bn in fcf in 2024
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2023 Q2
14 Jul 23