Delta Air Lines, Inc. (NYSE:DAL) stock rose 2.83% (As on October 14, 11:45:41 AM UTC-4, Source: Google Finance) after the company misses the analysts’ estimates for the third quarter of FY 22 on the back of continued recovery of the travel as consumer spend shifts to experiences and demand improves in corporate and international. The company is working towards full network restoration by summer of 2023, which supports a meaningful step up in profitability and cash flow next year on the path to earn over $7 of EPS and $4 billion of free cash flow in 2024. The company generated Operating cash flow of $869 million. The company did payments on debt and finance lease obligations of $1.8 billion. Total debt and finance lease obligations of $23.2 billion at quarter end.

DAL in the third quarter of FY 22 has reported the adjusted earnings per share of $1.51, missing the analysts’ estimates for the adjusted earnings per share of $1.56, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 35.9 percent to $13.98 billion in the third quarter of FY 22, missing the analysts’ estimates for revenue of $14.16 billion. Operating revenue was of $12.8 billion, 3 percent higher than September quarter 2019, including a $35 million impact from Hurricane Ian. The company delivered Operating income of $1.5 billion with an operating margin of 11.6 percent.

Moreover,  domestic passenger revenue was 2 percent higher and international passenger revenue was 97 percent recovered compared to the September quarter 2019. International unit revenue growth outpaced domestic for the first time since the pandemic. Transatlantic demand was driven by leisure destinations such as Italy, Spain and Greece and improving business demand, with Transatlantic revenue up 12 percent compared to 2019. Premium revenue was up 8 percent versus 2019, 10 points higher than the main cabin revenue growth. Premium and other diversified revenue streams, including Loyalty, Cargo and MRO, comprised 54 percent of total revenues. Remuneration for the September quarter was $1.4 billion, 37 percent higher compared to the September quarter 2019 and is now expected to be $5.5 billion for the full year.

For the fourth quarter ending in December, Delta expects its per-share earnings to range from $1 to $1.25, Total Revenue to be up 5 – 9% and Operating Margin to be in the range of 9 – 11%.