Delta Air Lines sets aggressive targets at Capital Market Day event
Dec. 16, 2021 7:11 AM ETDelta Air Lines, Inc. (DAL)By: Clark Schultz, SA News Editor5 Comments
- Delta Air Lines (DAL) is presenting its strategic priorities at a Capital Markets Day event hosted today at the New York Stock Exchange in New York City.
- Senior leadership will discuss in Delta how plans to expand its platform to create value over the long term. Highlights include competitive advantages taken by Delta during the pandemic.
- Delta says it expects to deliver meaningful profitability in 2022 on its path to improved earnings power beyond pre-pandemic levels by 2024. The top financial priority is restoring its financial foundation, with a focus on efficiency and cash generation to achieve investment grade metrics by 2024.
- Specific financial targets include revenue of more than $50B in 2024, EPS over $7.00 and free cash flow over $4B. All those marks are ahead of expectations. An adjusted debt/EBITDAR mark of between 2.0X and 3.0X in 2024 is also a goal of the carrier.
- For Q4, Delta (NYSE:DAL) now expects to generate an adjusted pre-tax profit of ~$200M. Only a limited impact from Omicron is noted.
- More updates from Delta on the year ahead are expected later in the day.
- Shares of DAL are up 1.23% premarket to $37.06.
- Delta Air Lines is on Seeking Alpha's Catalyst Watch this week.