Delta Air Lines delivered a record performance in the second quarter of 2023 amid strong demand for air travel.
“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 pointed out that demand for air travel remains robust, which has allowed Delta Air Lines to increase its 2023 full-year earnings guidance to $6 to $7 per share. The carrier also reiterated its recently updated outlook for $3 billion of free cash flow.
When the airline announced its Q1 2023 results, the full-year earnings guidance was between $5 and $6.
Overall, Delta Air Lines earned $15.5 billion in revenue in Q2 2023, resulting in $28.3 billion of revenue in H1 2023. Expenses, excluding non-operating costs, were $13.08 billion during the quarter and $26.1 billion during the first six months of the year.
As such, the company’s net income was $1.8 billion in Q2 2023 and $1.4 billion in H1 2023. The quarter marks a return to profitability during the year, as in Q1 2023, Delta Air Lines was loss-making, with a net loss of $363 million.
Delta Air Lines’ capacity, measured in Available Seat Miles (ASM), was 68.9 billion (Q1 2023: 61.3 billion), while demand, namely Revenue Passenger Miles (RPM), was 60.8 billion (Q1 2023: 49.6 billion).
The airline took delivery of a total of 12 aircraft during Q2 2023, adding to the six it took delivery of during the previous quarter. Delta Air Lines also exercised the options to purchase 12 Airbus A220 and one A330-900neo 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.