Delta Air Lines is Boosting 2023 Guidance After Travel Takes Off
Dec 14, 2022 By MarketDepth
Delta Airlines (DAL:NYQ) is surging after raising 2023 revenue guidance after beating expectations as a busy holiday season returns. The company stated they expect a jump of 7-8% in revenue for the quarter. As many airlines come out of covid and debts piled up over the pandemic companies are pushing revenue to continue to pay down debt. Delta Airlines expects to generate about $2 billion of free cash flow to help with debt repayment.
Delta Air Lines is up 2% intraday on the increased guidance but is down about 20% on the year after navigating the pandemic.
“Our 2023 outlook for revenue growth and margin expansion support a near doubling of EPS to $5 to $6 per share, keeping Delta on track for its 2024 earnings target of over $7 per share.”Delta CEO, Ed Bastian
With many carriers pushing for an increased travel period over the holidays, many are planning for increased costs over the next few years. This is due to increased labor expenses and a reduction in flights over the period. As many industries struggle to find and keep staff the travel industry is no exception as labor shortages have already created a change in flight schedules.