By Senad Karaahmetovic
Shares of Delta Air Lines (NYSE:DAL) are trading about 4.5% higher in pre-market Wednesday after the company raised the forecast for its fourth quarter and offered better-than-expected 2023 guidance.
For this quarter, Delta sees adjusted EPS between $1.35 and $1.40, up from the prior $1.00-$1.25 range and higher than the consensus of $1.15. Revenue is seen jumping 7%-8%, up from the previous forecast of 5%-9%.
"2022 is proving to be a pivotal year as we rebuild the world's best-performing airline. Thanks to the exceptional work of our people, we navigated challenges while continuing to strengthen our competitive advantages, enhancing the power of our trusted consumer brand," Chief Executive Officer Ed Bastian said.
The raised Q4 guidance pushes the FY2022 adjusted EPS to $3.07-$3.12, ahead of the consensus of $2.89. Revenue is now seen between $45.5 billion and $45.6B.
For FY2023, DAL sees adjusted EPS in the range of $5-$6 on revenue growth of 15%-20% relative to 2022. Analysts were looking for adjusted earnings of $4.80. The airline also said it expects to generate over $2B in FCF, which will enable “further debt reduction.”
"Demand for air travel remains robust as we exit the year and Delta's momentum is building," Bastian added.
DAL also reiterated its 2024 guidance for earnings of over $7 per share.