by Donald Wood
Last updated: 9:15 AM ET, Wed December 14, 2022
Delta Air Lines announced its profits are expected to nearly double next year, with officials saying "robust" demand for travel and a decline in non-fuel operating costs are driving up the annual forecast.
Delta announced a forecasted adjusted profit of $5 to $6 per share for 2023, up from an estimated $3.07 to $3.12 per share for this year. The airline also upgraded its profit estimates for the fourth quarter, saying it will climb from $1.35 to $1.40 per share, up from its $1.00 to $1.25 per share forecast in October.
Officials also said its fourth-quarter revenue forecast is 7-8 percent higher than the same period in 2019. In October, the company estimated revenue for the final quarter would be 5-to-9 percent higher versus 2019.
"2022 is proving to be a pivotal year as we rebuild the world's best-performing airline," Delta Chief Executive Officer Ed Bastian said. "Thanks to the exceptional work of our people, we navigated challenges while continuing to strengthen our competitive advantages, enhancing the power of our trusted consumer brand."
"Demand for air travel remains robust as we exit the year and Delta's momentum is building," Bastian continued. "Our 2023 outlook for 15 to 20 percent revenue growth over 2022 and margin expansion support a near doubling of EPS to $5 to $6 per share, keeping us on track for our 2024 earnings target of over $7 per share."
Earlier this week, Delta announced it would resume service to Havana, Cuba, in Spring 2023. The carrier revealed it would operate with two daily nonstop flights from Miami International Airport to Jose Marti International Airport in Havana, starting on April 10, 2023.
The carrier also revealed earlier this month it offered its pilots a 34 percent cumulative pay increase over three years as part of recent contract negotiations. The deal would see Delta's pilots earn a raise of at least 18 percent on the date the contract is signed, then another five percent after one year, four percent after two years and four percent after three years.
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