Delta Air Lines (NYSE:DAL) has told investors that it expects revenue in 2023 to expand by 15 to 20% from 2022 levels as demand for air travel remains strong and its own momentum continues to build, sending its shares higher.
In an outlook statement ahead of a presentation to the investment community, the airline also forecast a near doubling of 2023 earnings per share (EPS) to $5 to $6, supported by margin expansion and keeping it on track for its 2024 earnings target of over $7 per share.
"2022 is proving to be a pivotal year as we rebuild the world's best-performing airline,” Delta CEO Ed Bastian said in the statement.
“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.
"Demand for air travel remains robust as we exit the year and Delta's momentum is building,” Bastian added.
Ahead of financial plan
The update comes as Delta closes out the final weeks of 2022, which it described as “a year of significant progress in the restoration of the airline's financial foundation.”
It said it is delivering on key operational and commercial milestones and is ahead of its financial plan for the first year of the airline's three-year plan, established last December.
Full-year 2022 GAAP EPS is expected to be $2.12 to $2.17 while adjusted EPS of $3.07 to $3.12 reflects an increased outlook for the December quarter compared to prior guidance provided in October, Delta said.
In 2023, Delta said expects to deliver strong topline growth and significant operating leverage on a full restoration of its network and continued improvements in premium and loyalty revenue.
Delta’s shares were 4% higher in early afternoon trade.
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