Delta Air Lines exceeded profit and revenue expectations for the fourth quarter of 2024, thanks to a surge in travel demand during the critical holiday period.
The airline reported strong cash bookings driven by both leisure and corporate travelers, with November and December marking four of the top 10 revenue days in its history.
Why It Matters
Delta’s performance highlights the resilience of the airline industry, with a continued recovery driven by consumer demand, particularly in premium products. As the travel sector strengthens, Delta’s ability to meet both leisure and business travel needs positions it well for future growth.
The company logo graces the side of a Delta Air Lines jetliner at Denver International Airport in Denver, on June 26, 2019. On Friday, Delta reported that it topped profit and revenue expectations in the… The company logo graces the side of a Delta Air Lines jetliner at Denver International Airport in Denver, on June 26, 2019. On Friday, Delta reported that it topped profit and revenue expectations in the fourth quarter on strong demand during the crucial holiday period. More David Zalubowski/AP Photo
What To Know
Delta reported earnings of $843 million, or $1.29 per share, for the quarter. Adjusted earnings, excluding one-time expenses, were $1.85 per share, surpassing Wall Street’s expectations of $1.76, based on a survey by Zacks Investment Research.
The company’s revenue for the quarter was $15.56 billion, up from $14.22 billion the previous year, and exceeded analysts’ estimates of $14.99 billion.
Lower Fuel Costs
The airline also benefited from a decrease in fuel costs. Fuel expenses dropped to $2.41 billion, compared to $2.94 billion in the same period last year. The average price per gallon fell to $2.36 from $3.01. Total revenue per available seat mile climbed to $21.60, up from $20.78 a year ago.
Positive Outlook
Delta raised its earnings forecast for the full year, and is now expecting earnings of more than $7.35 per share, with first-quarter earnings expected to be between 70 cents and $1 per share. Analysts had expected $6.11 per share for the full year and 77 cents for the first quarter.
Delta Air Lines CEO Ed Bastian talks at the new Terminal C at LaGuardia Airport on Oct. 29, 2019 in New York. Bastian said on Friday,
Delta’s Holiday Travel Surge Fuels Record Revenue in Q4
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