What's Going On With Delta Air Lines Shares Today

Delta Air Lines, Inc. DAL revised its FY23 outlook and reiterated its FY24 targets in its Investor Day 2023 presentation.

The airline mentioned that the air travel revenue is returning to Long-Term Trend, with Industry Revenue to, from and within U.S. as % of GDP.

The historical average was 1.3%, for 2022 it reached 1.2%, and for FY23 it is estimated to reach 1.3%.

2Q23 Outlook, raised: Delta Air Lines expects revenue growth of 17%-18% (prior view 15% - 17%). Sees Capacity YoY +17% and Non-Fuel CASM +1%-3%.

It sees EPS of $2.25-$2.50 (prior $2.00 - $2.25) vs. $2.17 consensus; and an operating margin of 16% (prior 14% - 16%).

FY23 Outlook, revised: Delta Air Lines expects revenue growth of +17%-20% (prior view 15% - 20%). Sees Capacity YoY +17%; Non-Fuel CASM flat.

DAL sees EPS of $6 (prior view $5 to $6) vs. $5.81 consensus; operating margin top-end of 10%-12% (prior view 10% - 12%); and free cash flow of $3 billion (prior more than $2 billion).

Also Read: US Airlines 2Q23 Earnings Preview: Exploring Upsides Amid Lowered Fuel Forecasts and Robust Summer Demand

FY24 Outlook, reiterated: Delta Air Lines sees EPS above $7 and an operating margin of 13%-15%.

It expects Capacity to be up mid-single-digits and Non-Fuel CASM to be down low single-digits.

The airline expects the supply constraints to continue for FY23.

Price Action: DAL shares are trading higher by 0.79% at $43.48 premarket on Tuesday.