Delta Air Lines exceeded profit and revenue expectations for the fourth quarter of 2024, thanks to a surge in travel demand during the critical holiday period.
The airline reported strong cash bookings driven by both leisure and corporate travelers, with November and December marking four of the top 10 revenue days in its history.
Why It Matters
Delta's performance highlights the resilience of the airline industry, with a continued recovery driven by consumer demand, particularly in premium products. As the travel sector strengthens, Delta's ability to meet both leisure and business travel needs positions it well for future growth.
What To Know
Delta reported earnings of $843 million, or $1.29 per share, for the quarter. Adjusted earnings, excluding one-time expenses, were $1.85 per share, surpassing Wall Street's expectations of $1.76, based on a survey by Zacks Investment Research.
The company's revenue for the quarter was $15.56 billion, up from $14.22 billion the previous year, and exceeded analysts' estimates of $14.99 billion.
Lower Fuel Costs
The airline also benefited from a decrease in fuel costs. Fuel expenses dropped to $2.41 billion, compared to $2.94 billion in the same period last year. The average price per gallon fell to $2.36 from $3.01. Total revenue per available seat mile climbed to $21.60, up from $20.78 a year ago.
Positive Outlook
Delta raised its earnings forecast for the full year, and is now expecting earnings of more than $7.35 per share, with first-quarter earnings expected to be between 70 cents and $1 per share. Analysts had expected $6.11 per share for the full year and 77 cents for the first quarter.
What People Are Saying
Delta Air Lines CEO Ed Bastian said in a prepared statement: "As we move into 2025, we expect strong demand for travel to continue, with consumers increasingly seeking the premium products and experiences that Delta provides."
Aviation-data provider Cirium reported that Delta had the highest on-time arrival rate among U.S. carriers in 2024, despite a significant computer outage in July. Delta achieved an on-time rate of more than 83 percent, ranking third worldwide behind Aeromexico and Saudia. United Airlines and Alaska Airlines followed, with on-time rates of 81 percent and 79 percent, respectively.
What Happens Next
Delta's strong performance continues to position it as a leader in the airline industry. The company is set to benefit from sustained travel demand, especially as travelers increasingly prioritize premium experiences.
Moving into 2025, Delta's revenue growth is expected to remain robust, with continued optimism in the first quarter of the year.
This articles includes additional reporting from The Associated Press
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