Delta Airlines announces Q3 2022 profit

America’s Delta Airlines has released its financial results for the third quarter of 2022, recording a quarterly revenue and second consecutive quarter of double-digit operating margin.

This came just as the mega carrier said it was expecting its December quarter revenue recovery to accelerate relative to 2019, while announcing it was on track to achieve 2024 targets of over $7 adjustment EPS and $4 billion of free cash flow.

Speaking on the highlights of the Q3 2022 results, the airline’s Chief Executive Officer, Ed Bastian, attributed the encouraging record of the airline to the loyalty of the workers, saying, “Thanks to the incredible work of our entire team, Delta delivered a strong September quarter with record quarterly revenues and a double-digit operating margin. The travel recovery continues as consumers’ spend shifts to experiences and demand improves in corporate and international.”

While expecting December quarter revenue growth to accelerate versus 2019 with an operating margin of approximately 10 per cent, Bastian said, “With strong demand and a return to best-in-class operational performance, we are ahead of our plan for the year on profitability and expect to be free cash flow positive. We are working towards full network restoration by summer of 2023, which supports a meaningful step up in profitability and cash flow next year on our path to earn over $7 of EPS and $4 billion of free cash flow in 2024.”

In its September financial report, the mega carrier recorded operating revenue of $14.0 billion, operating income of $1.5 billion with an operating margin of 10.4 per cent.

Netting the earnings per share of $1.08, it has the operating cash flow of $869 million while its payments on debt and finance lease obligations was $1.8 billion just as its total debt and finance lease obligations amounted to $23.2 billion at quarter end.

Its adjusted financial results showed operating revenue of $12.8 billion, three per cent higher than September quarter 2019, including a $35 million impact from Hurricane Ian disaster.

While the airline has operating income of $1.5 billion with an operating margin of 11.6 per cent, it has the earnings per share of $1.51, including a 3¢ impact from Hurricane Ian with $11.2 billion in liquidity and adjusted net debt of $20.5 billion at quarter end.