Delta Air Lines (DAL) Q4 2024 Earnings

Delta AirlinesFriday’s first-quarter forecast beat analysts’ expectations as the carrier forecast strong travel demand to start the year, which CEO Ed Bastian said would likely be the carrier’s best yet.

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

“We’re feeling pretty good going into the new year,” Bastian told CNBC. “We’re seeing consumers everywhere continue to value experiences over goods.”

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

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

• Earnings per share: It was revised to $1.85, versus $1.75 expected
• Income: An adjusted $14.44 billion versus an expected $14.18 billion

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

The Atlanta-based airline is the first major US carrier to report earnings this quarter. Airlines have enjoyed strong travel demand since the pandemic, which analysts say will continue this year. deals along the way for consumers.

Delta said it used a boom premium travel demand for these products continues to grow as more customers reward larger locations or credit cards.

Delta shares were up more than 8% in midday trading. Airline stocks have risen in recent months. Delta’s shares main competitor, United AirlinesIt had gained more than 130% in the past 12 months through Thursday’s close. Delta shares are up more than 45% during that period.

of Delta American Express The partnership generated $2 billion in revenue in the fourth quarter, up 14% year over year. Revenue from premium seats such as first class and premium economy rose 8% to $5.2 billion in the fourth quarter, while core cabin ticket revenue rose 2% to nearly $6 billion.

Unit revenue, a measure of how much revenue an airline makes for how many flights, rose 4% in the fourth quarter from 2023.

Delta’s profit fell 59% to $843 million in the final three months of the year compared to the same period in 2023, as costs, including wages, rose 7%, or $942 million. Revenue increased by 9% compared to last year and reached $15.6 billion.

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

Correction: Delta expects first-quarter earnings of between 70 cents and $1 per share. The previous version mischaracterized the numbers.