by Donald Wood
Last updated: 11:30 AM ET, Thu April 13, 2023
Delta plane at the gate (photo by Eric Bowman)
Delta
Air Lines revealed the financial results for the first quarter of 2023 and
updated its outlook for the second quarter, including record advance summer
bookings.
Delta reported operating revenue of $12.8 billion, operating
loss of $277 million, pre-tax loss of $506 million, operating cash flow of $2.2
billion and total debt and finance lease obligations of $22 billion at quarter
end.
The airline also announced adjusted financial results for
the March quarter, with totals reaching 45 percent higher than the first
quarter of 2022 and 14 percent from the same period in 2019. Operating income rose
to $546 million with an operating margin of 4.6 percent.
“Thanks to the outstanding work and dedication of the Delta
team, 2023 is off to a strong start,” CEO Ed Bastian said. “We provided
well-deserved pay increases for our people and paid more profit sharing than
the rest of the industry combined. Delta is building momentum, with the best
people in the industry generating nearly $5 billion of operating profit over
the last twelve months.”
The carrier revealed that advance cash bookings were nearly
20 percent higher than in 2019, while total unit revenue (TRASM) rose 16
percent compared to pre-pandemic totals and 23 percent versus 2022.
Revenue from premium products and diverse revenue streams
was 56 percent of adjusted operating revenue, with premium revenue growth
continuing to outpace the main cabin. Co-brand acquisitions and spending growth
also drove loyalty revenue improvement.
“We delivered record March quarter revenue with total unit
revenue that was 16 percent higher than the same period in 2019,” President Glen
Hauenstein said. “These results reflect the strength in the underlying demand
environment and continued momentum in premium products and loyalty revenue.”
Another reason for the recent success was an increase in small-
and medium-business bookings, which recovered to 2019 levels. International corporate
sales grew to around 90 percent of pre-pandemic levels, excluding China.
“With record advance bookings for the summer, we expect June
quarter revenue to be 15 to 17 percent higher on capacity growth of 17 percent
year over year,” Hauenstein continued.
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