Delta Air Lines (DAL) Q1 2024 earnings

Delta Airlines became profitable in the first quarter and its CEO, Ed Bastian, said leisure and business travel bookings were strong heading into the peak tourist season.

The carrier earned $37 million, or 6 cents per share, in the first three months of the year, compared with a loss of $363 million, or 57 cents per share, in the year-ago period. previous, he announced on Wednesday. Delta’s adjusted profit of $288 million, or 45 cents per share, was up from $163 million, or 25 cents per share, in the first quarter of 2023.

Revenue of $12.56 billion, adjusted to exclude refinery sales, was up 6% from a year ago and slightly below analysts’ expectations.

“Consumers continue to view travel as a discretionary investment in itself,” Bastian said in an interview.

Delta shares rose nearly 5% in premarket trading following the company’s earnings release.

Here’s how the company performed in the quarter ended March 31, compared to Wall Street expectations based on LSEG consensus estimates:

• Adjusted earnings per share: 45 cents versus 36 cents expected.
• Adjusted income: $12.56 billion versus $12.59 billion expected.

Business travel improved last quarter and strong demand is expected to continue, executives said.

Delta forecast second-quarter earnings of between $2.20 and $2.50 per share, while analysts forecast between $2.23 per share on average, according to LSEG. Delta also reiterated its full-year guidance of $6 to $7 per share and free cash flow of $3 billion to $4 billion.

Delta has slowed its hiring, like other carriers, after a massive hiring surge in the wake of the pandemic, and is focusing more on efficiency. Bastian told CNBC that the company’s headcount will likely be up single digits this year compared to 2023.

“Growth is normalizing and we are in a period of optimization, focusing on restoring our most profitable core hubs and achieving efficiencies,” Chief Financial Officer Dan Janki said in a statement from results.