Delta Air Lines has reported a strong performance for the final months of 2024, surpassing Wall Street's profit expectations, driven by robust gains in international and corporate travel. The airline's adjusted profit for the fourth quarter was $1.85 per share, exceeding the average analyst estimate of $1.76. Revenue also outperformed expectations, reaching $14.44 billion compared to the anticipated $14.16 billion. CEO Ed Bastian highlighted the "health of the demand environment" as a key factor, with corporate travel sales jumping 10%, particularly from technology and financial services sectors. Additionally, international travel revenue increased by 6% year-over-year, and premium revenue outpaced coach cabin growth by 6 percentage points.
Delta's optimistic outlook for 2025 is bolstered by a favorable supply-demand balance and continued strong demand for international flights. The airline expects adjusted profit for the current quarter to be between 70 cents and $1 per share, with revenue projected to rise by as much as 9% from the previous year. This positive sentiment is further supported by Delta's strategic focus on premium products, with 85% of new seats in 2025 being premium, catering to millennials who are spending more on air travel.
Delta Air Lines (DAL) shares have risen 6.97% to $65.70 as of 7:41 am on January 10th, up from the previous close of $61.42.