Despite a high demand for air travel, Delta Air Lines posted a record-breaking performance in the second quarter of 2023.
“Thanks to the incredible work of our entire team, Delta is delivering for our customers by providing strong operational performance and best in class service during this busy summer period,” said Ed Bastian, the chief executive officer (CEO) of Delta Air Lines. According to Bastian, the airline managed to generate “record revenue and profitability” in Q2.
The executive emphasized that the continued strength of the air travel market has allowed Delta Air Lines to raise its full-year earnings projection for 2023 to $6 to $7 per share. The carrier also reaffirmed its forecast for $3 billion in free cash flow, which had just been upgraded.
The airline gave a range of $5 to $6 for its full-year earnings forecast when it released its Q1 2023 results.
Overall revenue for Delta Air Lines in Q2 2023 was $15.5 billion, translating to $28.3 billion in revenue for the first half of 2023. For the quarter and the first half of the year, expenses, excluding non-operating expenditures, totaled $13.08 billion and $26.1 billion, respectively.
In Q2 2023 and H1 2023, respectively, the company’s net income was $1.8 billion and $1.4 billion, respectively. The quarter represents a return to year-round profitability for Delta Air Lines, which had a net loss of $363 million in the first quarter of 2023.
Available Seat Miles (ASM) for Delta Air Lines were 68.9 billion (Q1 2023: 61.3 billion), while Revenue Passenger Miles (RPM) were 60.8 billion (Q1 2023: 49.6 billion).
In addition to the six aircraft it received during the prior quarter, the airline received a total of 12 aircraft during Q2 2023. Additionally, Delta Air Lines exercised its option to buy one A330-900neo and twelve Airbus A220 aircraft.
“Robust demand is continuing into the September quarter where we expect total revenue to be similar to the June quarter, up 11 percent to 14 percent compared to the September quarter 2022 on capacity that is 16 percent higher,” concluded Glen Hauenstein, president of Delta Air Lines.
