What drove Delta's operating profit growth in 2023?

Delta Air Lines' operating profit growth in 2023 was primarily driven by strong air travel demand, strategic network adjustments, and effective cost management.

1. **Robust Air Travel Demand**: Delta experienced a significant surge in air travel demand, both domestically and internationally. This was fueled by post-pandemic travel rebound and strong consumer demand, particularly for international flights. The company reported record international passenger revenue in Q2, with sales up 61% compared to 2022. Additionally, the transatlantic season was stretched, leading to a longer peak travel period, which benefited Delta's revenue streams.
2. **Strategic Network Optimization**: Delta strategically redirected resources from domestic to international routes, canceling up to 100 domestic destinations in 2022 as international demand outweighed domestic. This shift aligned with the heightened demand for long-haul flights, maximizing revenue potential.
3. **Cost Management and Fuel Efficiency**: Despite increased demand and labor shortages, Delta managed to maintain operational efficiency. Fuel costs, although rising, were offset by higher revenue, resulting in improved operating margins. The company's efforts to modernize its fleet with more fuel-efficient aircraft, such as the A350 and A330neo, also contributed to cost management and reduced operational expenses in the long term.

In summary, Delta's operating profit growth in 2023 was driven by a combination of robust air travel demand, strategic network adjustments, and effective cost management. These factors collectively contributed to the company's financial performance and projected growth.