Delta Air Lines (DAL) Q4 2024 Earnings

Delta Air LinesIts first-quarter outlook on Friday beat analysts’ expectations as the carrier forecast strong travel demand to start the year, which CEO Ed Bastian said would be the carrier’s best ever.

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

“We feel really good going into the new year,” Bastian told CNBC. “Everywhere we see that consumers continue to prioritize experience over goods.”

That’s setting Delta up for “the best event in our history,” Bastian added.

Here’s how the company performed in the three months ended Dec. 31 compared to Wall Street expectations, according to LSEG’s consensus estimates:

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

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

The Atlanta-based airline is the first major US airline to report earnings this quarter. Airlines have seen strong post-pandemic travel demand, which analysts say is likely to continue this year, with only a few. deals on the way to consumers.

Delta said it is taking advantage of a boom premium travel as more customers opt for wider seats or reward credit cards, demand for these products continues to rise.

Delta shares rose 9% in Friday trading. Airline stocks have soared in recent months. Delta shares main rival, United AirlinesIt had gained more than 140% over the past 12 months through Friday’s close. Delta shares are up nearly 59% over that period.

Delta’s American Express the partnership brought in $2 billion in the fourth quarter, up 14% from the previous period. Revenue from premium seats, such as first class and premium economy, rose 8% to $5.2 billion in the fourth quarter, compared with a 2% rise in main cabin ticket revenue of about $6 billion.

Unit revenue, a measure of how much revenue an airline 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 compared to the same period in 2023, as expenses, including payroll, rose 7%, or $942 million. Revenue rose 9% from a year earlier to $15.6 billion.

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

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