Delta earnings top estimates on strong demand

Delta Air Lines reported better-than-expected earnings for the fourth quarter of 2024, driven by strong demand for travel that it expects to continue into 2025. For the October to December period, the airline posted operating revenue of $15.6 billion and net income of $843 million.

Adjusted earnings per share came in at $1.85, surpassing the $1.75 expected by analysts. As a result, Delta's shares rose 9.0% on Friday.

Ed Bastian, Delta's CEO, expressed optimism about the future, stating, “2025 is off to a great start, and we are on track to deliver the best financial year in our history.” He highlighted the financial health of U.S. consumers, noting that many continue to prioritize spending on experiences, which benefits the airline industry.

Looking ahead to 2025, Delta expects strong demand to persist, particularly for its premium products and services. The airline forecasts a 7-9% revenue increase in the first quarter of 2025 and expects earnings per share to range between 70 cents to $1. For the entire year, Delta anticipates annual adjusted earnings of more than $7.35 per share and free cash flow of over $4 billion.

In total, for 2024, Delta posted $61.6 billion in revenue and adjusted earnings per share of $6.16. The company also reported $3.4 billion in free cash flow.

However, Delta's third-quarter results were impacted by a global computer outage in July and the effects of Hurricane Helene in the U.S. Despite these challenges, Delta's president Glen Hauenstein stated that the company "built momentum as we closed out 2024," noting that demand trends accelerated through the quarter.

In November and December, the airline achieved four of its top ten revenue days in history, experiencing double-digit growth in cash bookings from both leisure and corporate travelers.

In addition to strong financial performance, Delta reinvested nearly $5 billion into its business and reduced its net debt by $3.6 billion to $18 billion in 2024. The airline also announced $1.4 billion in profit-sharing payments to employees, which will be distributed next month.