Delta Airlines (NYSE:DAL) shares are in focus today after the company disclosed key data ahead of its investor day.
Delta noted that air travel revenue is moving back to long-term levels with pent-up demand yet to be satiated. While high-income travelers made up three-quarters of air travel spending, the industry’s supply is still falling short owing to capacity constraints.
The company is focusing on lowering debt and boosting free cash flow generation with a target of more than $4 billion in free cash flows in 2024.
Importantly, the company has also raised expectations for the year 2023 while maintaining targets for 2024. The operating margin in 2023 is now expected at the top end of an earlier outlook between 10% and 12%. EPS for the year is seen landing at the top end of previous estimates between $5 and $6.
For 2024, Delta sees its operating margin hovering between 13% and 15%. EPS for the year is seen landing at +$7.
For the second quarter, revenue is expected to rise between 17% and 18% alongside EPS in the range of $2.25 and $2.50.
Overall, the Street has a $55.18 consensus price target on Delta alongside a Strong Buy consensus rating. Shares of the company have surged nearly 20.2% over the past month alone.
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