Delta Air Lines (DAL) 4Q 2024 earnings

Delta Air LinesFriday’s first-quarter outlook beat analysts’ expectations as the carrier predicted strong travel demand to start the year, which CEO Ed Bastian said will likely be the carrier’s best ever.

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

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

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

Here’s how the company did in the three months ended Dec. 31 compared to Wall Street expectations based on consensus estimates from LSEG:

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

Delta said it expects revenue to rise 7% to 9%, ahead of the roughly 5% growth that analysts polled by LSEG had expected. The carrier expects first-quarter earnings 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 airline to report earnings this quarter. Carriers have enjoyed strong post-pandemic travel demand, which analysts say is likely to continue this year, with a few deal on the way to consumers.

Delta said it capitalized on a trend toward premium travel as more customers shell out for roomier seats or reward credit cards.

of Delta American Express Partnership brought in $2 billion in the fourth quarter, up 14% from the year-ago period. Revenue from premium seats, such as first class and premium economy, rose 8% in the fourth quarter to $5.2 billion compared to a 2% increase in main cabin ticket revenue to about $6 billion.

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

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

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