Delta Air Lines (DAL+10.47%) on Friday revealed a first-quarter outlook above analysts’ expectations as the carrier expects strong demand for travel to give it the best year in its history.
The Atlanta-based airline said it expects free cash of more than $4 billion in 2025, an 18% increase over last year, and full-year earnings per share greater than 10% compared to 2024.
For the current fiscal quarter, Delta projects revenue to grow between 7% and 9% year-over-year, with earnings per share of between 70 cents and $1. Wall Street forecast revenue to grow about 5% and earnings per share of about 77 cents per share.
“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,” CEO Ed Bastian said in a statement, adding that Delta is positioned “to deliver the best financial year in Delta’s 100-year history.”
Delta stock soared by more than 9% in pre-market trading on Friday. Other airline stocks are also rising, including JetBlue Airways (JBLU+1.62%), Southwest Airlines (LUV+0.73%), and American Airlines (AAL+3.24%).
The intense optimism from Delta came as the airline broke out its fourth-quarter earnings.
Delta reported net income of $843 million for the fourth quarter, a 59% decline from a year earlier as expenses grew to $942 million. Revenue hit $15.6 billion, a 9% increase compared to the same time in 2023. Delta said it saw four of the top ten days for revenue in its history between November and December, driven by strong holiday travel demand.
“Delta delivered the most profitable December quarter in our history with pre-tax income of $1.6 billion, up $500 million over prior year,” Delta CFO Dan Janki said in a statement.
For 2025, investors can expect Delta to continue its focus on premium customers, an endeavor that’s seen it announce huge new ultra-luxe airport lounges, fancy mid-flight burgers, and other initiatives. Revenue from premium seats rose 8% last quarter to $5.2 billion, while main cabin ticket revenue grew 2% to $6 billion. Delta said that premium and loyal customers accounted for 57% of total revenue in 2024.
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