Delta Air Lines (DAL) shares jumped higher Wednesday after the carrier boosted its near-term profit forecasts ahead of an investor day presentation in New York.
Delta said it sees adjusted earnings in the region of $5 to $6 per share next year, nearly double its expected tally for 2022, with revenue gains of between 15% and 20%, thanks to what it described as a sustained surge in travel demand paired with falling jet fuel prices and a decline in non-fuel operating costs.
Momentum into the final months of this year, Delta said, should help 2022 revenues rise to between $45.5 billion and $45.6 billion, with adjusted earnings of between $3.07 and $3.12 per share.
"2022 is proving to be a pivotal year as we rebuild the world's best-performing airline," said CEO Ed Bastian. "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," he added. "Our 2023 outlook for 15 to 20 percent revenue growth over 2022 and margin expansion support a near doubling of EPS to $5 to $6 per share, keeping us on track for our 2024 earnings target of over $7 per share. "
Delta shares were marked 3.4% higher in early Wednesday trading to change hands at $34.58 each.
Delta took a $35 million hit from Hurricane Ian, which devastated the Florida Gulf coast in late September before moving north into Georgia and South Carolina, in its third quarter earnings, but still posted record revenues of $12.84 billion.
