Delta Air Lines, established in 1925, is one of the largest airlines globally, with its main office in Atlanta, Georgia. Delta flies to over 300 places across six continents and is known for its good customer service and reliable flights. The airline is also focused on sustainability, working to reduce its carbon footprint and improve passenger experiences with modern amenities.
Delta is part of the SkyTeam alliance, which helps it connect to more destinations worldwide. Its SkyMiles loyalty program offers perks like earning miles for flights and upgrades. Delta has major hubs in cities like Atlanta, Detroit, and Minneapolis-St. Paul, making it easy for travelers to connect to different regions. Overall, Delta is a key player in the aviation industry, adapting to meet travelers’ needs.
Delta Airlines Fiscal Q4 2024
Air Lines(DAL) earnings report for December 2024 and the full year 2024 shows a Strong performance, reflecting both operational excellence and strategic differentiation from its competitors. Delta reported Q4 operating revenue of $14.4 billion and earnings per share of $1.85, both earnings and revenue exceeding expectations.
Earning Highlights:
- Delta reported record revenues of $61.6 billion for 2024.
- Operating revenue for the fourth quarter rose to $15.6 billion.
- Growth driven by strong travel demand, especially in premium and loyalty segments, which made up 57% of total revenue.
- Cargo revenue grew by 32% in the fourth quarter.
- Delta had industry-leading operational performance.
- Operating margin was 11% in the fourth quarter and 9.7% for the year.
- Effective cost management and high operational efficiency boosted profitability.
Delta demonstrated strong financial health with $8 billion in operating cash flow and $3.4 billion in free cash flow for the full year. The company also made significant progress in debt reduction, improving its adjusted debt to EBITDAR ratio to 2.6x.
2025 Outlook
Looking ahead, Delta provided a positive outlook for 2025, with expected EPS greater than $7.35 and free cash flow exceeding $4 billion. The company anticipates revenue growth of 7% to 9% in the March quarter and EPS between $0.70 to $1.00.
Board’s Statement
Delta’s CEO, Ed Bastian, emphasized the company’s differentiated strategy and best-in-class operations, which are expected to drive continued strong demand for premium products and services. The company’s focus on premium travel and loyalty programs, along with its operational excellence, positions it well for future growth.
Impact of Earning on Stock
Delta Air Lines’ stock (DAL) reacted positively to the earnings report for 4Q and the full year 2024. Shares of Delta Air Lines rose by 7.6% in premarket trading immediately following the earnings report. Also, Delta’s revenue and adjusted earnings for the 4Q exceeded analysts’ estimates, which contributed to the positive stock movement.
Over the past year, Delta’s stock has risen by roughly 50%, outperforming some competitors but trailing behind others. The strong financial results and positive outlook for 2025 have bolstered investor confidence, leading to a favorable reaction in the stock market.
