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Cryptocurrency News Articles
Delta Air Lines (NYSE: DAL) Reports Robust Financial Results for the September Quarter of 2024, Showcasing Industry-Leading Performance
Oct 10, 2024 at 06:49 pm
The company achieved an operating revenue of $15.7 billion under GAAP metrics and $14.6 billion in adjusted terms, despite the financial impact of a major operational disruption caused by a CrowdStrike-related outage.
Delta Air Lines (NYSE:DAL) reported robust financial results for the September quarter of 2024, showcasing an industry-leading performance. The company achieved an operating revenue of $15.7 billion under GAAP metrics and $14.6 billion in adjusted terms, despite the financial impact of a major operational disruption caused by a CrowdStrike-related outage.
The operating income reached $1.4 billion, translating to an operating margin of 8.9% and a pre-tax income of $1.6 billion with a 10% pre-tax margin. Earnings per share (EPS) stood at $1.97, while the adjusted EPS, accounting for the outage, was $1.50. Delta’s strong operational performance was further highlighted by a $1.3 billion operating cash flow and a free cash flow of $95 million for the quarter, contributing to a year-to-date free cash flow of $2.7 billion.
Delta’s financial performance for the quarter exceeded expectations in several key areas. The adjusted operating revenue of $14.6 billion was in line with the anticipated revenue of $14.64 billion, even with the significant financial impact of the CrowdStrike (NASDAQ:CRWD) outage.
The adjusted EPS of $1.50 fell slightly short of the expected $1.52, reflecting the 45-cent impact of the outage. However, the company’s ability to maintain a strong operating margin of 9.4% on an adjusted basis, despite the challenges, highlights its operational resilience.
Comparatively, Delta’s performance against the prior year showed a mixed picture. The adjusted operating income declined by 30% from $1.963 billion in the third quarter of 2023 to $1.373 billion in 2024, largely due to the outage.
However, the company’s pre-tax income saw a modest increase of 3%, demonstrating effective cost management and operational efficiency. The airline’s diversified revenue streams, particularly in premium products and loyalty programs, continued to drive differentiation, contributing 57% to the total adjusted operating revenue.
Delta’s optimism for the December quarter is evident in its guidance, which anticipates total revenue growth of 2% to 4% year-over-year. The company expects to achieve an operating margin expansion to 11% – 13%, indicating a strong recovery trajectory post-outage.
Delta anticipates earnings per share to range between $1.60 and $1.85, reflecting confidence in its operational capabilities and market position. The airline’s focus on efficiency is expected to drive low-single-digit growth in non-fuel unit costs for the year.
Delta’s strategic initiatives, including network expansion and fleet modernization, are set to bolster its competitive edge. The company plans to continue leveraging its diversified revenue base and strategic partnerships to enhance customer experience and drive revenue growth.
With strong booking trends for the holiday period and rationalized industry supply growth, Delta is well-positioned to capitalize on the improving demand environment as it transitions into 2025.
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- Ripple Launches New Features and Integrated Compliance Functionality for Its Custody Solution
- Oct 10, 2024 at 10:25 pm
- SAN FRANCISCO–(BUSINESS WIRE)–Today, Ripple, the leading provider of digital asset infrastructure, announced the launch of new features and functionality to Ripple Custody, bringing the benefits of its market-leading bank-grade custody technology to fintechs and crypto businesses.