Delta Air Lines, Inc. Reports Q3 2024 Financial Results
Delta Air Lines, Inc. reported its financial results for the third quarter ending September 30, 2024.
Financial Overview:
| Metric | Q3 2024 Actual | Q3 2023 Actual | Year-over-Year Change | Consensus Estimate | Versus Estimate |
|---|---|---|---|---|---|
| Total Revenue | $14.54 billion | $14.35 billion | +1% | $14.67 billion | Missed |
| Earnings Per Share (EPS) | $1.48 | Not Disclosed | Not Disclosed | $1.52 | Missed |
Delta Air Lines' total revenue for Q3 2024 was $14.54 billion, a 1% increase year-over-year. However, this missed the consensus estimate of $14.67 billion. The earnings per share (EPS) were $1.48, slightly underperforming the expected EPS of $1.52.
Segment Revenue Performance:
| Segment | Q3 2024 Revenue | Previous Guidance |
|---|---|---|
| Passenger | Not Disclosed | Increased in Premium |
| Cargo and Freight | Not Disclosed | Consistent with Guidance |
| Refinery Sales | $148 million | Surpassed Expectations |
The revenue from the refinery operations increased by $148 million compared to Q3 2023, primarily due to third-party sales. Premium passenger revenue showed strength, in contrast to a decrease in main cabin ticket revenue.
Key Developments & Operational Highlights:
- A technical outage attributed to a software fault from cybersecurity vendor CrowdStrike resulted in a five-day disruption, incurring $170 million in additional expenses.
- Passenger capacity increased by 4%.
- An updated delivery schedule for Boeing 737-10s was received, with the first 20 aircraft deliveries expected in 2026.
Comments from Company Executives:
Delta's executives highlighted the operational disruptions caused by the CrowdStrike outage, which led to approximately 7,000 flight cancellations, impacting 1.4 million customers. They emphasized ongoing investments to improve the recovery plans and create a more resilient infrastructure to prevent similar future disruptions.
Capital Returns:
The company declared a quarterly dividend of $0.15 per share, to be paid on October 31, 2024. Total cash dividends for the nine months ending September 30, 2024, amounted to $225 million.
Guidance:
While specific forward guidance figures were not disclosed, the company maintains an optimistic outlook, anticipating robust travel demand and improved financial performance following operational setbacks.
Market Reaction:
Following the earnings announcement, Delta's stock experienced a decline of approximately 1.35%.
[Note: Where figures like segment revenue are not explicitly provided, the 'Not Disclosed' term has been used to denote insufficient data from the provided release.]
The report is well-organized and provides relevant information for investors. No changes are necessary.
For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.
