Why Delta Air Lines Shares (DAL) Are Gaining Today - Delta Air Lines (NYSE:DAL)

Delta Air Lines Inc DAL shares are up over 2% Thursday morning following the release of its first-quarter results, which were in line with its guidance.
DAL reported a first-quarter FY23 adjusted operating revenue growth of 45% year-over-year and +14% from 1Q19 to $11.8 billion, missing the consensus of $11.98 billion.
Operating revenue on a GAAP basis was $12.8 billion (+36% Y/Y).
Adjusted EPS was $0.25 below the consensus of $0.30.
Total passenger revenue was $10.41 billion, a 51% increase YoY. Cargo revenue decreased 28% Y/Y to $209 million.
Delta recorded an adjusted operating income of $546 million, compared to a loss of $(793) million in 1Q22, and the adjusted operating margin was 4.6%.
Adjusted operating expenses increased by 26% Y/Y to $11.29 billion, and non-fuel costs increased 24% to $8.5 billion for the quarter.
Delta Air Lines generated an adjusted operating cash flow of $2.94 billion, an increase of 67% Y/Y. Adjusted net debt at quarter-end was flat at about $20.9 billion.
Total revenue per available seat mile increased by 15% Y/Y and increased 23% Y/Y on an adjusted basis. The passenger load factor was 81% vs. 75% in 1Q22.
DAL reported liquidity of $9.5 billion at quarter-end, including $2.9 billion in undrawn revolver capacity.
Adjusted average fuel price of $3.06 per gallon jumped 10% from last year's quarter.
"We delivered record March quarter revenue with total unit revenue that was 16 percent higher than the same period in 2019. These results reflect the strength in the underlying demand environment and continued momentum in premium products and loyalty revenue," commented Glen Hauenstein, Delta's president.
2Q23 Outlook: Delta Air Lines expects revenue growth of 15% - 17%; EPS of $2.00 - $2.25 vs. $1.65 estimate; and an adjusted operating margin of 14% - 16%.
Reiterates FY23 Outlook: DAL sees EPS of $5 to $6 vs. $5.39 estimate; revenue growth of +15% - 20%; operating margin of 10% - 12%; and free cash flow of more than $2 billion.
Price Action: DAL shares are trading higher by 2.34% at $34.53 premarket on Thursday.

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Why Delta Air Lines Shares Are Gaining Today

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