Delta Air Lines has issued a first-quarter earnings forecast that has exceeded Wall Street's expectations, propelling its stock upward. The airline anticipates earnings per share (EPS) between $0.70 and $1.00, surpassing the consensus estimate of $0.77. Additionally, Delta projects revenue growth of 7% to 9% year-over-year, compared to analysts' expectations of a 5% increase. CEO Ed Bastian expressed optimism, stating that Delta is poised to have the best financial year in its 100-year history, driven by strong demand for travel and a focus on premium products and experiences.
The airline's robust outlook is further supported by its fourth-quarter performance, where it reported a net income of $843 million despite increased expenses. Revenue for the quarter reached $15.6 billion, marking a 9% increase from the previous year. Delta's focus on premium customers has paid off, with revenue from premium seats rising 8% last quarter. The company expects free cash flow to exceed $4 billion in 2025, an 18% increase over the previous year, and full-year EPS growth of more than 10% compared to 2024.
Delta Air Lines (DAL) shares have surged 10.50% to $67.87 as of 10:51 am on January 10th, up from its previous close of $61.42.