The market had been closely watching Delta's performance, particularly due to concerns about escalating fuel costs and maintenance expenses. Analysts had initially anticipated a more significant cut to Delta's previous guidance for full-year earnings of up to $7 a share, but the airline's latest report paints a more optimistic picture.
Ed Bastian, Delta's Chief Executive Officer, expressed his pride in the company's accomplishments, stating, "Thanks to the outstanding work of our entire team, Delta delivered record September quarter revenue and a double-digit operating margin. Our operational reliability continues to strengthen, thanks to our people, and I'm pleased to recognize their outstanding efforts with over $1 billion accrued year-to-date towards profit sharing."
Delta's strong financial performance extends beyond the September quarter, with the company reporting solid financial results. Operating revenue for the period was $15.5 billion, and it achieved an operating margin of 12.8 percent. The airline's adjusted financial results were equally impressive, with an operating margin of 13.5 percent, pre-tax income of $1.7 billion, and earnings per share of $2.03.
For the December quarter Delta anticipates total revenue growth of 9 percent to 12 percent compared to the December quarter of 2022. This reflects the continued strong demand for travel.
Delta's strong performance is not limited to its financials. The airline has also been recognized for its exceptional customer service and has been named the Best Airline of 2023 by USA Today. In addition, Delta's focus on loyalty programs, in-flight entertainment, and airport lounges has earned it accolades as one of the world's most admired airlines.
Delta's CEO, Ed Bastian, had this to say about the company's future: "Delta continues to set itself apart as a trusted consumer brand delivering welcoming, caring and elevated service by the best people in the industry. Our differentiated position supports our expectations for full year revenue growth of 20 percent over 2022, and pre-tax earnings of over $5 billion, a near doubling over prior year earnings."
Despite challenges such as rising fuel costs and maintenance expenses, Delta's ability to exceed expectations and achieve significant growth in both revenue and pre-tax earnings reflects its strong performance in the airline industry. Consumer demand for air travel remains strong.