08:48 AM EDT, 04/10/2024 (MT Newswires) -- Delta Air Lines ( DAL ) reported first-quarter results above market estimates buoyed by robust travel demand, which the carrier is continuing to see in the ongoing three-month period.

Adjusted earnings came in at $0.45 a share for the March quarter, up from $0.25 a year earlier, topping the Capital IQ-polled consensus of $0.37. Operating revenue rose 7.7% to $13.75 billion, surpassing the Street's view for $12.86 billion. The stock advanced 3.3% in premarket trading Wednesday.

Total passenger revenue was up 7% to $11.13 billion, with domestic rising 5% to $7.98 billion. Cargo revenue slumped 15% to $178 million.

Total unit revenue edged down 0.7% from last year but was up three points from the December quarter, President Glen Hauenstein said in a statement. Domestic unit revenue grew 3% with "record" load factors, according to the company. International passenger unit revenue declined 3% on 16% higher capacity, as the airline continued to make investments in rebuilding its Latin and Pacific networks.

"Growth is normalizing and we are in a period of optimization, with a focus on restoring our most profitable core hubs and delivering efficiency gains," Chief Financial Officer Dan Janki said.

For the ongoing three-month period ending June, Delta expects adjusted EPS between $2.20 and $2.50, while the Street is looking for $2.37. Revenue is anticipated to increase by 5% to 7%, with total unit revenue set to be flat to up 2%.

"Strong demand for travel on Delta is continuing into the June quarter," Hauenstein said. "Within this outlook, all geographic entities are expected to achieve unit revenue approximately flat to last year, except Latin, where we expect a double-digit decline as we lap strong performance and continue to profitably invest in the network."

The airline reiterated its full-year 2024 adjusted earnings guidance range of $6 to $7 per share, while analysts are estimating normalized EPS of $6.46. "We expect to repay at least $4 billion of debt this year and are on track to improve full year leverage," Janki said.

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