Delta’s cargo revenue up 27% in Q3

Delta Air Lines today reported $196 million in cargo revenue for the third quarter, an increase of 27% from Q3 2023. The carrier saw no significant year-over-year change in its adjusted operating revenue of $14.6 billion. Q3 cargo revenue saw double-digit growth across all international regions, Delta President Glen Hauenstein said on today’s earnings call. [caption id="attachment_57146043" align="aligncenter" width="2560"] Delta took three new A350s in Q3. (Courtesy/Delta Air Lines)[/caption] The carrier attributed the rise in cargo revenue to increased international volume. Delta’s Q2 cargo revenue was up 16% YoY and its overall revenue was up 5.4% YoY. Delta’s improved cargo revenue in Q2 and Q3 indicates growth in the sector, which was hampered in 2023 by high capacity and low demand. The carrier’s cargo revenue dropped 15% YoY in Q1 2024 and fell 31% YoY for full-year 2023. CrowdStrike outage affects bottom line The carrier attributed its minimal overall revenue increase, in part, to July’s CrowdStrike outage that affected Windows hosts. Delta reported a revenue loss of about $380 million from the outage. From July 19 through July 23, Delta canceled about 7,000 flights. The U.S. Department of Transportation opened an investigation that month into Delta’s handling of the outage. “On an earnings-per-share basis, our results would have been at the high end of initial guidance, excluding the $0.45 impact from the CrowdStrike-caused outage,” Delta Chief Executive Ed Bastian said on the earnings call. Delta’s Q3 adjusted operating income was $1.4 billion, down 30% YoY. The carrier also reported in Q3: Adjusted diluted earnings per share of $1.50, down 26% YoY; and Income before taxes of $1.6 billion, up 3% YoY. Delta, which only moves cargo via belly capacity, has taken delivery of twenty-seven aircraft year to date, including three A350-900s and three A330-900s in Q3. Outlook Delta expects its Q4 YoY revenue to increase by 2% to 4%. The carrier estimates earnings per share to be between $1.60 and $1.85. The carrier’s Q4 earnings will likely also be affected by Hurricane Milton. Delta operated additional flights and up-gauged aircraft to assist with Florida’s evacuation, Bastian said. At the time of the earnings call this morning, Delta had canceled 600 flights for Oct. 9 and 10. “We’ll have a better sense of the impact as we learn of how our airports fared overnight,” he said. Shares of Delta Air Lines ( NYSE: DAL ) were down 1.04% from market open to $50.30 as of market close today. Delta has a market capitalization of $32.5 billion. The 30th Cargo Facts Symposium will take place Oct. 14-16 at the Omni Hotel in San Diego. Gain valuable insights, success strategies and networking opportunities at this special anniversary event. Learn more and <a style="color: #0000ff;" href="https://cargofactsevents.com/product/cargo-facts-symposium-registration/?utm_campaign=CFS%202024&utm_source=Editorial%20-%20Footer&utm_medium=Editorial%20-%20Footer&utm_term=Editorial%20-%20Footer&utm_content=Editorial%20-%20Footer&__hstc=75154765.904b71bee21c99d4eb26c4f563837fe7.1722015266031.1728585803143.1728588748711.51&__hssc=75154765.27.1728588748711&__hsfp=1896627464" target="_blank" rel="noopener"> register today .

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