Delta Air Lines (DAL) Q4 2024 Earnings

Delta AirlinesThe outlook for the first quarter on Friday exceeded analyst expectations, as the airline forecast strong travel demand to start the year, which CEO Ed Bastian said will likely be the best in the airline’s history.

Delta said it expects to generate more than $4 billion in free cash this year, up 18% from 2024 and at the midpoint of its annual target of between $3 billion and $5 billion. For the full year, it expects adjusted annual earnings of more than $7.35 per share.

“We’re feeling pretty good going into the new year,” Bastian told CNBC. “Everywhere we see that consumers continue to prioritize experience over products.”

This sets Delta up for “our best financial year in our history,” Bastian added.

Here’s how the company performed in the three months ended December 31 compared to Wall Street expectations based on LSEG consensus estimates:

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

Delta said it expects revenue to rise between 7% and 9%, ahead of the roughly 5% growth that analysts surveyed by LSEG had forecast. The airline expects first-quarter earnings of between 70 cents and $1, slightly above Wall Street predictions of between 65 cents and 97 cents.

The Atlanta-based airline is the first major U.S. airline to report earnings this quarter. Carriers have enjoyed strong post-pandemic travel demand, which analysts say will likely continue this year, with some offers on the road for consumers.

Delta has said it has been capitalizing on a trend toward premium trips as more customers shell out money for roomier seats or rewards credit cards.

delta American Express The association generated $2 billion in the fourth quarter, 14% more than in the same period of the previous year. Revenue from premium seats, such as first class and premium economy, rose 8% in the fourth quarter to $5.2 billion, compared with a 2% increase in revenue from main cabin tickets to about $6 billion.

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

Delta’s profits fell 59% to $843 million in the final three months of the year from the same period in 2023 as expenses, including payroll, rose 7%, or $942 million. Revenue rose 9% to $15.6 billion from a year earlier.

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