Delta Air Lines (DAL) Q4 2024 earnings

Delta AirlinesFirst-quarter forecasts on Friday beat analysts’ expectations as the carrier forecast strong travel demand to start the year, which CEO Ed Bastian said was likely to 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 in the middle of its annual target of $3 billion to $5 billion. For the full year, it expects adjusted annual earnings of more than $7.35 per share.

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

This is preparing Delta 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 consensus estimates from LSEG:

• EPS: $1.85 was revised from $1.75 expected
• profit: $14.44 billion adjusted versus $14.18 billion expected

Delta said it expects revenue to rise 7% to 9%, beating analysts’ growth expectations of about 5% polled by LSEG. The carrier expects first-quarter earnings per share to be between 70 cents and $1, slightly above Wall Street’s forecast of 65 cents to 97 cents.

The Atlanta-based airline is the first major U.S. airline to report earnings for the quarter. Airlines have enjoyed strong post-pandemic travel demand, which analysts said is likely to continue this year, with few Deals All the way to consumers.

Delta said it is benefiting from the boom in… Premium travel As more and more customers look for more spacious seats or rewards credit cards, demand for these products continues to rise.

Delta shares rose more than 8% in afternoon trading. Airline stocks have risen in recent months. Shares in Delta Main competitor, United Airlineswas up more than 130% over the past 12 months as of Thursday’s close. Delta shares rose more than 45% in that period.

Delta American Express The partnership brought in $2 billion in the fourth quarter, up 14% from the same period a year earlier. Premium seat revenue, such as first class and premium economy, rose 8% in the fourth quarter to $5.2 billion compared with a 2% rise in main cabin ticket revenue to about $6 billion.

Unit revenue, a measure of how much revenue an airline generates versus its flight volume, rose 4% in the fourth quarter of 2023.

Delta’s profits fell 59% to $843 million in the final three months of the year compared with the same period in 2023 as expenses, including salaries, rose 7%, or $942 million. Revenues rose 9% to $15.6 billion compared to the previous year.

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

Correction: Delta expects first-quarter earnings per share to range between 70 cents and $1. An earlier version misstated the numbers.