Delta Air Lines (NYSE:DAL) stock gained ground on Wednesday as the carrier offered bullish forecasts for the next few years.
In a Financial Outlook and Strategic Update offered to investors on Wednesday morning, the Atlanta-based airline raised its Q4 EPS forecast to a range of $1.35 to $1.40 EPS from a prior forecast of $1 to $1.25. The analyst consensus for the quarter stood at $1.15. Based upon the raised Q4 guide, the company expects full-year EPS to range from $3.07 to $3.12, well above the $2.88 consensus on Wall Street. Revenue is expected to range from $45.5B to $45.6B for the full year.
Moving into 2023 and 2024, Delta also offered above-consensus guidance for earnings per share. The company anticipates $5 to $6 in earnings per share in 2023 and “over $7 per share” for 2024. Both figures are above consensus estimates that stand at $4.80 and $6.62, respectively. Revenue is anticipated to grow 15% to 20% from 2022 to 2023.
“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,” CEO Ed Bastian said. “Demand for air travel remains robust as we exit the year and Delta’s momentum is building.”
He added that the airline remains on track to reduce debt and cut its leverage in half by 2024. Non-fuel unit costs are expected to decline 5% to 7% in 2023, supporting the stronger profit dynamics expected for the airline.
DAL shares picked up 69 cents, or 2.1%, to $34.07.
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