Delta Air Lines beats Q4 expectations, shares edge higher

Investing.com -- Delta Air Lines reported fourth-quarter earnings that surpassed analyst estimates, driven by strong travel demand and operational performance. The airline's shares rose 1.5% in premarket trading following the results.

Delta posted adjusted earnings per share of $1.85, beating the consensus forecast of $1.75. Revenue came in at $14.4 billion, topping expectations of $14.13 billion and representing a 5.7% increase year-over-year.

The carrier saw an acceleration in demand through the quarter, with November and December delivering four of the top ten revenue days in company history. Double-digit growth in cash bookings was driven by both leisure and corporate travelers.

"2024 was a great year for Delta with our results reflecting differentiation from the industry and increased durability," said CEO Ed Bastian. "Our people finished the year strong, delivering industry-leading operational and financial performance."

For the first quarter of 2025, Delta expects earnings per share between $0.70 and $1.00, compared to analyst estimates of $0.77. The company forecasts Q1 revenue growth of 7% to 9% YoY.

Looking ahead to full-year 2025, Delta projects earnings per share to exceed $7.35, representing over 10% growth compared to 2024 when excluding a one-time impact. On an adjusted basis, this guidance implies over 19% earnings growth.

"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," Bastian added.

The company aims to deliver over $4 billion in free cash flow in 2025 while continuing to reduce leverage.

Source: Investing.com