Delta Air Lines earnings top estimates on strong demand
DELTA Air Lines posted better-than-expected earnings on Friday for the fourth quarter of 2024, citing strong demand for travel that it expects will carry on into the new year.
In the October to December period, Delta reported operating revenue of US$15.6 billion, alongside US$843 million in net income.
But its adjusted earnings per share came in at US$1.85, above the US$1.75 expected by analysts.
Delta shares rose 9.0 per cent on Friday.
“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,” said chief executive Ed Bastian in a statement.
He told a conference call that “2025 is off to a great start, and we are on track to deliver the best financial year in our history.”
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“The US consumer is financially healthy and continues to prioritize spending on experiences,” he added.
The Atlanta-based company expects its revenue to rise by seven to nine percent in the first quarter of this year, forecasting earnings per share of between 70 cents to US$1.
In 2025, Delta anticipates annual adjusted earnings of more than US$7.35 per share, alongside free cash flow of more than US$4 billion, it said.
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For all of 2024, Delta posted revenue of US$61.6 billion and adjusted earnings per share of US$6.16.
It also reported free cash flow of US$3.4 billion.
But Delta’s third-quarter results were adversely affected by a global computer outage in July that stranded thousands of travellers.
Other issues in the third quarter included the effects of Hurricane Helene in the United States.
But Delta’s president Glen Hauenstein said the company “built momentum as we closed out 2024.”
“Demand trends accelerated through the quarter,” he added in a statement.
In November and December, “Delta saw four of the top ten revenue days in the company’s history and double-digit growth in cash bookings driven by both leisure and corporate travelers,” the company noted.
Last year, Delta reinvested nearly US$5 billion into the business and reduced its net debt by US$3.6 billion to US$18 billion.
It will also log US$1.4 billion in profit sharing payments to staff next month. AFP
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