Delta Air Lines (DAL) Q1 2024 earnings

Delta Airlines It turned profitable in the first quarter, and CEO Ed Bastian said leisure and business travel bookings were strong heading into the peak travel season.

The company said Wednesday that it earned $37 million, or 6 cents per share, in the first three months of the year, up from a loss of $363 million, or 57 cents per share, in the corresponding period a year earlier. Delta's adjusted earnings of $288 million, or 45 cents per share, were up from $163 million, or 25 cents per share, in the first quarter of 2023.

Revenue of $12.56 billion, adjusted to exclude refinery sales, was up 6% from a year ago, and slightly below analysts' expectations.

“Consumers continue to prioritize travel as a discretionary investment in themselves,” Bastian said in an interview.

Delta shares rose nearly 5% in premarket trading after the company reported results.

Here's how the company works Procedure In the three months ended March 31, compared to Wall Street expectations based on LSEG consensus estimates:

• Adjusted earnings per share: 45 cents versus 36 cents expected.
• Adjusted revenue: $12.56 billion versus $12.59 billion expected.

Corporate travel improved in the fourth quarter and strong demand is likely to continue, executives said.

Delta expects second-quarter earnings to range from $2.20 to $2.50 per share, while analysts expect $2.23 per share on average, according to LSEG. Delta also reiterated its full-year forecast of $6 to $7 per share and free cash flow of $3 billion to $4 billion.

Delta, like other carriers, has slowed hiring after a massive hiring spree in the wake of the pandemic, and is focusing more on efficiency. The company's headcount will likely rise by single digits this year compared to 2023, Bastian told CNBC.

“Growth is returning to normal and we are in a period of improvement, with a focus on restoring our most profitable core positions and achieving efficiency gains,” CFO Dan Janke said in an earnings release.