Q1 2024 Delta Air Lines Inc Earnings Call Transcript
Key Points
- Delta Air Lines Inc (DAL) reported pretax earnings of $380 million or $0.45 per share, a $0.20 improvement over last year.
- Revenue increased by 6% to a new record for the first quarter.
- Free cash flow was strong at $1.4 billion, with a return on invested capital of nearly 14%.
- Operational reliability was industry-leading, with mainline cancellations down 85% and new records for completion factor in both Q4 and Q1.
- Delta's partnership with American Express continues to strengthen, with record quarterly remuneration of $1.7 billion.
- Despite strong performance, higher fuel prices impacted the results, with fuel averaging $2.76 per gallon, $0.16 higher than the midpoint of guidance.
- The refinery profit was down $173 million from last year due to more normalized refining margins.
- Total unit revenue growth was down 0.7%, including nearly a 1-point headwind from cargo and MRO.
- International unit revenue declined by 3% due to capacity investments in the rebuild of Latin and Pacific franchises.
- There is a headwind from the normalization of travel credits, which affects revenue performance.
Good morning, everyone, and welcome to the Delta Air Lines March Quarter 2024 Financial Results Conference Call. My name is Matthew, and I will be your coordinator. (Operator Instructions) As a reminder, today's call is being recorded. (Operator Instructions) I would now like to turn the conference over to Julie Stewart, Vice President of Investor Relations. Please go ahead.
Thank you, Matthew. Good morning, everyone, and thanks for joining us for our March quarter 2024 earnings call. Joining us from Atlanta today are our CEO, Ed Bastian; our President, Glen Hauenstein; and our CFO, Dan Janki. Ed will open the call with an overview of Delta's performance and strategy, and Glen will provide an update on the revenue environment. Dan will discuss costs and our balance sheet. After the prepared remarks, we'll take analyst questions. We ask you to please limit yourself to one question and a brief follow-up, so we can get to as many of you as possible.
And after the analyst Q&A, we'll move to our media
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