Delta Air Lines reports an increase in profit in 2023 and cautiously optimistic for the current year. However, rising costs could hinder the recovery of the international travel industry. According to the airline, the adjusted earnings per share for 2024 are expected to be between $6.00 and $7.00.

However, this is below the long-term goal of "more than 7.00 dollars," which Delta has been pursuing for several years. The analysts' expectations averaged at 6.50 dollars per share. Compared to the previous year, the earnings per share have increased from 3.20 to 6.25 dollars.

The announced order of new Airbus aircraft, which was long awaited, could not offset Delta's cautious profit forecast. This also weighed on the stock prices of major European airlines.

Lufthansa temporarily lost nearly 3 percent and reached its lowest level in two months. In London, IAG (International Consolidated Airlines) shares fell by 3.3 percent, and in Paris, Air France-KLM shares fell by 2.6 percent. Even the shares of Delta Air Lines itself experienced a downward trend, with a decrease of 6.40 percent to $39.55.

The aviation industry faces various challenges such as higher costs due to inflation or new collective agreements for pilots. Delivery bottlenecks also result in longer repair times for engines and delay the delivery of new aircraft.

In view of this uncertain situation, it makes sense for Delta to adjust its forecast, as CEO Ed Bastian explained in an interview. However, he does not give up the long-term target of "$7.00." For the first quarter of this year, the company expects an increase in adjusted revenue of three to six percent.

The adjusted earnings per share are expected to be between 0.25 and 0.50 dollars. As Delta announced, the revenue has increased from 50.6 billion to over 58 billion dollars (approximately 52.9 billion euros) compared to the previous year. This corresponds to an adjusted growth rate of 20 percent.

The net profit was $4.6 billion compared to $1.3 billion in 2022. Delta recorded the highest number of passengers in the company's history last year. In the fourth quarter, revenue increased from $13.4 billion to $14.2 billion and net profit doubled to around $2 billion.

However, considering special factors, the adjusted result declined. Nevertheless, the numbers exceeded analysts' expectations. Additionally, Delta announced the order of new aircraft. The company ordered 20 units of the long-haul jet A350-1000 from Airbus.

The deliveries are expected to begin in 2026.

In addition, Delta secured options for an additional 20 widebody aircraft from Airbus. The A350-1000 is the largest model by Airbus, following the discontinuation of the A380, the world's largest passenger jet, due to low demand.