Delta Air Lines (DAL) 4Q 2024 earnings

Delta Air Lines‘ first-quarter outlook on Friday topped analyst expectations because the carrier forecast strong travel demand to begin the 12 months, which CEO Ed Bastian said will likely be the carrier’s best ever.

Delta said it expects to generate greater than $4 billion in free money this 12 months, up 18% from 2024 and within the midpoint of its annual goal of between $3 billion and $5 billion. For the complete 12 months, it expects annual adjusted earnings greater than of $7.35 per share.

“We feel quite good coming into the brand new 12 months,” Bastian told CNBC. “In every single place, we see consumers proceed to prioritize experience over goods.”

That’s organising Delta for “our greatest financial 12 months in our history,” Bastian added.

Here’s how the corporate performed within the three months ended Dec. 31 compared with Wall Street expectations based on consensus estimates from LSEG:

• Earnings per share: $1.85 adjusted vs. $1.75 expected
• Revenue: $14.44 billion adjusted vs. $14.18 billion expected

Delta said it expects revenue to rise 7% to 9%, ahead of the roughly 5% growth analysts polled by LSEG had forecast. The carrier expects first-quarter earnings per share of between 70 cents and $1, barely ahead of Wall Street predictions of between 65 cents and 97 cents.

The Atlanta-based airline is the primary major U.S. carrier to report earnings this quarter. Airlines have enjoyed strong post-pandemic travel demand, which analysts said is more likely to proceed this 12 months, with a number of deals along the way in which for consumers.

Delta has said it has been capitalizing on a boom in premium travel as more customers shell out for roomier seats or rewards bank cards, with demand for those products continuing to rise.

Delta shares rose 9% in Friday trading. Airline stocks have rallied in recent months. Shares in Delta’s chief rival, United Airlines, gained greater than 140% over the past 12 months through Friday’s close. Delta shares are up nearly 59% in that period. 

Delta’s American Express partnership brought in $2 billion within the fourth quarter, up 14% from the year-earlier period. Revenue from premium seats, similar to top notch and premium economy, rose 8% within the fourth quarter to $5.2 billion compared with a 2% rise in major cabin ticket revenue to about $6 billion.

Unit revenue, a measure of how much revenue an airline is bringing in for the way much it flies, rose 4% within the fourth quarter from 2023.

Delta’s profit fell 59% to $843 million within the last three months of the 12 months from the identical period of 2023 as expenses, including payroll, rose 7% or $942 million. Revenue rose 9% to $15.6 billion from a 12 months earlier.

Adjusting for one-time items, Delta posted per-share earnings of $1.85 within the fourth quarter, on adjusted revenue of $14.44 billion, each ahead of analysts’ estimates.

Correction: Delta expects first-quarter earnings per share of between 70 cents and $1. An earlier version mischaracterized the figures.