Delta Q42023 cargo revenue down 24%

Delta Air Lines reported a 24 percent decline in cargo revenue at $188 million for the fourth quarter ended December 31, 2023 compared to $248 million in Q42022.

For the year ended December 31, 2023, cargo revenue declined 31 percent to $723 million from $1.05 billion in FY2022, says an official release.

Delta reported adjusted operating revenue of $13.7 billion for Q42023 and pre-tax income of $1.1 billion. For FY2023, adjusted operating revenue was $54.7 billion, and pre-tax income was $5.2 billion.

"2023 was a great year for Delta with industry-leading operational and financial performance," says Ed Bastian, Chief Executive Officer, Delta. "Our people and their commitment to deliver unmatched service excellence for our customers is at the foundation of Delta's success. We are thrilled to recognize their outstanding work with $1.4 billion in profit sharing payments next month.

"In 2024, demand for air travel remains strong and our customer base is in a healthy financial position with travel a top priority. We expect to grow full year earnings to $6-$7 per share and generate free cash flow of $3-$4 billion, further strengthening our financial foundation."

Glen Hauenstein, President, Delta adds: ""With our outlook for continued revenue growth, we expect March quarter unit revenues to be flat to down three percent over 2023. The midpoint of this outlook implies a two-point sequential improvement in unit revenues on a year-over-year basis. The March quarter includes a headwind from higher international mix, the normalisation of travel credit utilisation and lapping a competitor's operational challenges in the year ago period."

Delta announced an agreement with Airbus to purchase 20 A350-1000s with options for twenty additional widebody aircraft. Deliveries of the aircraft are scheduled to begin in 2026, the release added.