Delta Air Lines Stock Price Rose 3.1% on the Upbeat Q3 Profits

Delta Air Lines, Inc. (NYSE: DAL) stock price rose 3.1% after releasing its earnings report for the three months ended September 30, 2023. The airline reported a significant profit increase, up nearly 60% in the third quarter, as robust travel demand persisted throughout the summer, particularly for international journeys.

However, the company adjusted its full-year earnings forecast towards the lower end of its previous estimate due to rising fuel prices. In its latest quarterly report, Delta anticipates adjusted full-year earnings in its latest quarterly report to be $6 to $6.25 per share. 

In July, the company initially projected its full-year EPS in the $6 to $7 per share. The airline also revised its free cash flow estimate for the year, lowering it to $2 billion from the $3 billion forecasted earlier this year.

Despite these adjustments, Delta expressed confidence in solid travel demand for the year's final quarter. The company expects its revenue to rise by 9% to 12% compared to the same period in 2022, with per-share earnings projected to be between $1.05 and $1.30, in line with market expectations.

In the adjusted financial results for the September quarter, Delta Air Lines reported operating revenue of $14.6 billion, reflecting a 13% increase compared to the same quarter in 2022. The company's operating income for the period amounted to $2.0 billion, resulting in an operating margin of 13.5%.

The airline’s pre-tax income reached $1.7 billion, with a pre-tax margin of 11.8%, while earnings per share stood at $2.03. Like other global airlines, Delta has experienced robust demand for international travel, with trans-Atlantic flights being a standout performer.

Delta Air Lines has significantly reduced its leverage, bringing it down from 5x at the end of last year to 3x in the September quarter. The company's proactive efforts included repaying $3.7 billion of debt year-to-date, and it has ambitious plans to repay over $4 billion by the end of the year.

Delta Air Lines (DAL) stock price. 

The Delta Air Lines (DAL) stock price was trading up 3.06% and $37.08, from Wednesday’s closing price of $35.98.