Delta reached a major milestone this quarter, with adjusted revenue 3 percent higher and unit revenues up 23 percent compared to 2019, marking the highest revenue and unit revenue quarter in Delta’s history.

September Quarter 2022 GAAP Financial Results

• Operating revenue of $14.0 billion
• Operating income of $1.5 billion with an operating margin of 10.4 percent
• Earnings per share of $1.08
• Operating cash flow of $869 million
• Payments on debt and finance lease obligations of $1.8 billion
• Total debt and finance lease obligations of $23.2 billion at quarter end

„We delivered $1.5 billion of operating profit with a 12 percent operating margin in the September quarter despite costs related to our rebuild efforts as well as inflationary impacts felt across the industry,” said Dan Janki, Delta’s chief financial officer.

„With capacity expected to be 91 to 92 percent restored to 2019 in the December quarter, non-fuel unit costs are expected to be 12 to 13 percent higher, improving 10 points sequentially. Improving asset utilization and efficiency remain key priorities as we move into the final stages of rebuilding the airline and work to drive a competitive cost structure.”

The company repaid $1.8 billion of debt during the quarter, bringing year-to-date debt repayment to more than $4 billion.

„We remain committed to strengthening our balance sheet, targeting adjusted net debt of $15 billion and investment grade metrics by 2024.”

• Adjusted net debt of $20.5 billion at quarter end; Weighted average interest rate of 4.5 percent with 83 percent fixed rate debt and 17 percent variable rate debt
• Payments on debt and finance lease obligations of $1.8 billion, bringing year-to-date total to $4.2 billion
• Operating cash flow of $869 million and gross capital expenditures of $1.5 billion
• Air Traffic Liability ended September at $9.1 billion, down $817 million compared to June
• Liquidity of $11.2 billion, including $2.8 billion in undrawn revolver capacity

Delta announced it had reached an agreement with The Boeing Company to purchase 100 Boeing 737-10 aircraft, with options for 30 more. Deliveries of the aircraft will begin in 2025. In addition to improved fuel efficiency, these aircraft will have higher gauge and more premium seating. Delta’s 737 fleet will grow to over 300 aircraft by 2030, making it one of the company’s largest fleet families.