What to expect when Delta Air Lines (DAL) reports its Q4 earnings this week

Delta Air Lines Inc. in October 2019 it was changed to +1. The stock has gained 17% year-to-date and 31% over the past three months. The company is scheduled to report fourth quarter 2022 results on Friday, January 13 before the market opens. Here’s what to expect from the upcoming report:

results

Analysts forecast revenue of $12.2 billion for Delta in Q4 2022, which compares to $11.4 billion in Q4 2019. In the third quarter of 2022, Delta reported operating revenue of $13.9 billion on a GAAP basis, which was up 11% from Q3 2019. Adjusted operating income in Q3 was $12.8 billion, up 3% from the same period in 2019.

Delta continues to see strong demand for travel. With leisure travel remaining strong and business travel continuing to grow, the airline remains optimistic about its growth trajectory. The company is likely to benefit from strong travel trends during the holiday season. Last month, Delta raised its outlook for the fourth quarter of 2022. The company now expects total revenue to increase 7-8% from the fourth quarter of 2019 compared to 5-9% growth previously. For the full year 2022, Delta expects total revenue between $45.5-45.6 billion.

Profit and loss

Analysts expect adjusted EPS of $1.32 for Q4 2022. This compares to adjusted EPS of $1.70 reported in Q4 2019. In Q3 2022, Delta posted adjusted EPS of $1.51, which was down 35% from Q3 2019. The company raised EPS 20 which is set Q4. outlook for a range of $1.35-1.40 from the previous range of $1.00-1.25.

In Q3 2022, Delta’s operating margin was 10.4% on a GAAP basis and 11.6% on an adjusted basis. For the fourth quarter of 2022, the company raised its operating margin guidance to 11% from the previous range of 9-11%.

For the full year 2022, Delta expects adjusted EPS to be between $3.07-3.12 and operating margin to be 7.7%.

cost

In Q3 2022, Delta’s non-fuel unit cost (CASM-Ex) increased 22.5% to $12.43 compared to the same period in 2019. The average fuel price per gallon was $3.53, which was up 80% from Q3 2019. For the fourth quarter of 2022, adjusted fuel prices per gallon are estimated to be between $3.35-3.55. Q4 unit costs are expected to be 12-13% higher than 2019.

Click here to read the full transcript of the Delta Air Lines Q3 2022 earnings conference call