Delta Air Lines CEO Ed Bastian spoke on CNBC’s Power Lunch on December 17, 2024.
Adam Jeffery | CNBC
Delta Air LinesThe outlook for the first quarter on Friday exceeded analysts’ expectations as the airline forecast strong travel demand early in the year, which Chief Executive Ed Bastian said could be the best ever for the airline.
Delta Air Lines said it expects to generate more than $4 billion in free cash this year, an 18% increase from 2024 and in the middle of its annual target of $3 billion to $5 billion. Full-year adjusted earnings per share are expected to be more than $7.35.
“We feel really good going into the new year,” Bastian told CNBC. “Everywhere we see consumers continue to prioritize experiences over goods.”
Bastian added that this would give Delta “the best fiscal year in our history.”
Here’s how the company performed in the three months ended Dec. 31, compared with Wall Street expectations based on the LSEG consensus forecast:
- Earnings per share: Adjusted $1.85, expected $1.75
- income: Adjusted $14.44 billion, expected $14.18 billion
Delta Air Lines said it expected revenue to grow 7% to 9%, higher than the roughly 5% growth forecast by analysts polled by LSEG. The airline expects first-quarter profit to be between 70 cents and $1, slightly above Wall Street forecasts of 65 cents to 97 cents.
The Atlanta-based carrier is the first major U.S. airline to report a profit for the quarter. Airlines are enjoying strong post-pandemic travel demand that analysts say is likely to continue this year, with some discount All the way for consumers.
Delta Air Lines says it has been capitalizing on the trend quality travel As more customers spend money on roomier seats or rewards credit cards.
Delta Air Lines American Express The partnership generated $2 billion in revenue in the fourth quarter, up 14% from the same period last year. Revenue from premium seats such as first class and premium economy increased 8% in the fourth quarter to $5.2 billion, while main-cabin ticket revenue increased 2% to about $6 billion.
Unit revenue, a measure of revenue generated by airline flights, rose 4% from the fourth quarter of 2023.
Delta’s profit fell 59% to $843 million in the final three months of the year compared with the same period in 2023, as expenses including payroll increased 7%, or $942 million. Revenue increased 9% from the same period last year to US$15.6 billion.
After adjusting for one-time items, Delta Air Lines’ fourth-quarter earnings per share were US$1.85 and adjusted revenue was US$14.44 billion, both higher than analysts’ expectations.
