Delta introduces 2023 guidance for $5 to $6 in adjusted earnings per share

Delta Air Lines will highlight the company’s financial outlook and strategic priorities to the investment community today in New York. The event will be webcast, with presentations by Chief Executive Officer Ed Bastian, President Glen Hauenstein and Chief Financial Officer Dan Janki.

“2022 is proving to be a pivotal year as we rebuild the world’s best-performing airline. Thanks to the exceptional work of our people, we navigated challenges while continuing to strengthen our competitive advantages, enhancing the power of our trusted consumer brand,” Bastian said. “Demand for air travel remains robust as we exit the year and Delta’s momentum is building. Our 2023 outlook for 15 to 20 percent revenue growth over 2022 and margin expansion support a near doubling of EPS to $5 to $6 per share, keeping us on track for our 2024 earnings target of over $7 per share.”

The update comes as Delta closes out the final weeks of 2022, a year of significant progress in the restoration of the airline’s financial foundation. Delta is delivering on key operational and commercial milestones and is ahead of its financial plan for the first year of the airline’s three-year plan, established last December. Full year 2022 GAAP EPS is expected to be $2.12 to $2.17. Adjusted EPS of $3.07 to $3.12 reflects an increased outlook for the December quarter compared to prior guidance provided in October.

In 2023, Delta expects to deliver strong topline growth and significant operating leverage on a full restoration of its network and continued improvements in premium and loyalty revenue. Non-fuel unit costs are expected to decline 5 to 7 percent, driving margin expansion and a near doubling of adjusted EPS to $5 to $6. The company expects to generate more than $2 billion of free cash flow, enabling further debt reduction. The company is reiterating 2024 targets, including earning over $7 per share and strengthening the balance sheet to return to investment grade metrics.

Three Year Financial Outlook1

2022

2023

2024

Total Revenue

$45.5 – $45.6B

+15 – 20% YoY

GDP+ YoY

Operating Margin

7.7 %

10 – 12%

13 – 15%

Earnings Per Share

$3.07 – $3.12

$5 – $6

>$7

Free Cash Flow

Positive

>$2B

>$4B

Leverage2

5x

3 – 3.5x

2 – 3x

1 Non-GAAP measures; Refer to Non-GAAP reconciliations 

2 Adjusted Debt / EBITDAR 

December Quarter 2022 Financial Outlook1

Amid continued strong demand, Delta is raising its December quarter adjusted EPS guidance.

4Q22 Forecast

Updated

Prior

Total Revenue2

Up 7 – 8%

Up 5 – 9%

Operating Margin

11 %

9 – 11%

Earnings Per Share

$1.35 – $1.40

$1.00 – $1.25

1 Non-GAAP measures; Refer to Non-GAAP reconciliations

2 Compared to December quarter 2019

Top Copyright Photo: Delta Air Lines Airbus A350-941 N516DN (msn 530) LAX (Michael B. Ing). Image: 959653.

Delta aircraft photo gallery (Airbus):