Delta Air Lines (DAL) Q4 2024 results

Delta AirlinesFirst-quarter forecasts on Friday topped analysts' expectations as the carrier forecast strong travel demand at the start of the year, which CEO Ed Bastian said would likely be the best in the carrier's history.

Delta said it expects to generate more than $4 billion in free cash flow this year, up 18% from 2024 and within half of its annual target of $3 billion to $5 billion. For the full year, it expects adjusted annual earnings to be above $7.35 per share.

“We're feeling pretty good heading into the new year,” Bastian told CNBC. “We see everywhere that consumers continue to value experience over commodity.”

This means preparing Delta for “the best financial year in our history,” Bastian added.

Here are the company's results for the three months ended December 31 compared to Wall Street expectations based on LSEG consensus estimates:

• Earnings per share: Adjusted $1.85 vs. expected $1.75
• Income: Adjusted $14.44 billion vs. expected $14.18 billion

Delta said it expects revenue to grow 7% to 9%, compared with forecasts of around 5% from analysts surveyed by LSEG. The carrier expects first-quarter earnings per share to be between 70 cents and $1, slightly above Wall Street expectations of 65 cents to 97 cents.

The Atlanta-based airline is the first major U.S. carrier to report earnings this quarter. Airlines enjoy strong post-pandemic travel demand, which analysts say is likely to continue this year, with passenger numbers remaining low offers along the way for consumers.

Delta said it was taking advantage of the market boom premium travel as more customers opt for more spacious seats or rewards credit cards.

Delta shares rose by more than 6% in pre-market trading. Airline stocks have surged in recent months. Delta Shares main rival, United Airlineshas gained over 130% in the last 12 months. Delta shares are up more than 45% in that period.

Deltas American Express the partnership generated $2 billion in the fourth quarter, up 14% from the year-earlier period. Revenue from premium seats, such as first class and premium economy, rose 8% in the fourth quarter to $5.2 billion, compared with a 2% increase in main cabin ticket revenue to about $6 billion.

Unit revenue, a measure of the revenue an airline earns from the number of flights, rose 4% in the fourth quarter of 2023.

Delta's profit fell 59% to $843 million in the last three months of the year compared with the same period in 2023, while costs, including wages, rose 7%, or $942 million. Revenue increased 9% to $15.6 billion from the prior year.

Adjusted for one-time items, Delta reported fourth-quarter earnings of $1.85 per share on adjusted revenue of $14.44 billion, both beating analyst estimates.