Shares in Delta Air Lines (NYSE:DAL) are moving higher in premarket Tuesday after the company said it expects its full-year profit forecast to come in at the high end of its prior forecast.
Due to sustained travel demand, Delta said it expects its 2023 FY profit forecast at the high end of the $5-$6 range, compared to the prior forecast of just $5-$6. Delta also reiterated its 2024 targets.
Delta also said that consumer trends remain “favorable.”
For this quarter, the company expects to report a profit of $2.25-$2.50, higher than the consensus of $2.21.
The FY operating margin should also come in at the high end of the 10-12% range. Similarly, FY ROIC is now expected at above 13%, compared to the prior forecast for “low double digits."
Delta sees FY FCF of $3B, which compares to the prior “greater than $2B” forecast. Overall, FY adjusted revenue is seen rising 17-20% while Q2 revenue is expected to increase 17-18%.
The company is holding its “Delta Beyond 2023 Investor Day” today.