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Delta expects 2023 earnings to double as ‘robust’ travel rises!

Delta Airlines set for a ‘colossal’ return in the markets!

The airline expects its adjusted earnings to nearly double to as much as $6 per share next year, above analysts’ estimates. It forecast a 15% to 20% jump in revenue in 2023 from this year, which is expected to bring in roughly $45.5 billion.

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Delta news on full booking season

Free cash flow will likely rise from more than $2 billion next year to more than $4 billion in 2024, a sharp turnaround from 2020 when Delta posted a record loss. Delta is planning to pay down more of its debt over the next two years.

Delta and other airline executives in recent weeks have been upbeat about travel demand, despite warnings from other industries about economic weakness ahead.

“We’ve seen our recession,” CEO Ed Bastian said in an interview. “Consumers are prioritizing their spend, where they’re making choices, and they’re prioritizing investing in themselves and experience.”

  • Shares of Delta were up more than 3% in morning trading following the release.

The U.S. airline industry returned to profitability this year thanks to a sharp rebound in travel demand and consumers’ willingness to pay higher fares, which helped carriers more than make up for increased costs like fuel.

Airlines have cut some routes and been forced to scale back their planned capacity growth, which has kept fares firm. Supply chain and labor constraints have delayed deliveries of new aircraft, and airlines continue to struggle with a shortage of trained pilots.