Delta Charts Path To High Margins And Shareholder Gains At 2024 Investor Day

Delta Air Lines DAL will discuss its strategic priorities and long-term financial commitments with the investment community today at 2024 Investor Day in New York.

“We are introducing a three-to-five-year financial framework across key value drivers including margin expansion, durable earnings and free cash flow, and balance sheet strength that reflect Delta’s financial discipline and strategic priorities,” commented Delta CFO Dan Janki.

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Delta’s three-to-five-year financial framework targets mid-teens operating margins, 10% average annual EPS growth, and $3-5 billion in annual free cash flow. With 1x gross leverage, 15%+ return on invested capital, and $40 billion in unencumbered assets, the framework emphasizes margin expansion, durable earnings, and balance sheet strength.

Delta also reaffirmed its expected fourth-quarter financial guidance. On a non-GAAP basis, the company expects revenue growth of 2% – 4%, EPS of $1.60 – $1.85 versus $1.74 consensus, and an operating margin of 11% – 13%.

The company also provided preliminary commentary on 2025 for capacity growth of three to four percent year-over-year, revenue growth of mid-single digits and non-fuel unit cost growth of low-single digits year-over-year. 

Price Action: DAL shares are trading higher by 0.39% at $65.00 premarket at the last check Wednesday.

Photo via Shutterstock

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