Delta Air Lines Soars on Strong Q4 Earnings, Record Revenue

Delta Air Lines (DAL) reported a robust set of financial results for the December quarter and full year 2024, with record revenue and earnings that exceeded analysts' expectations. The airline's strong performance was driven by a combination of factors, including strong demand for travel, a differentiated strategy, best-in-class operations, and premium products and experiences.



In the December quarter, Delta reported operating revenue of $15.6 billion, operating income of $1.7 billion with an operating margin of 11.0 percent, pre-tax income of $1.2 billion with a pre-tax margin of 7.7 percent, and earnings per share of $1.29. For the full year, the airline reported record revenue of $5 billion, pre-tax income of $8 billion, operating cash flow of $3.4 billion, and free cash flow of $3.4 billion. These impressive results reflect Delta's ability to differentiate itself from the competition and maintain increased durability in the face of industry challenges.



Delta's CEO, Ed Bastian, attributed the airline's success to its people, who delivered industry-leading operational and financial performance throughout the year. He also highlighted the airline's commitment to sharing its success with its employees, announcing $1.4 billion in profit-sharing payments for the following month.

Looking ahead to 2025, Delta expects strong demand for travel to continue, with consumers increasingly seeking premium products and experiences. The airline's differentiated strategy and best-in-class operations, combined with demand strength and an increasingly constructive industry backdrop, position it to deliver the best financial year in Delta's 100-year history. Delta is guiding to 2025 earnings of greater than $7.35 per share and free cash flow of greater than $4 billion.



Delta's premium products and experiences have been a significant driver of its growth. At its investor day in November, the airline noted that premium revenue growth outperformed main cabin revenue growth by 6 points in the fourth quarter. This growth in premium revenue, combined with the airline's strong operational performance and partnerships with companies like Uber and YouTube, has contributed to Delta's record financial performance.

In conclusion, Delta Air Lines' strong Q4 earnings and record revenue reflect the airline's ability to differentiate itself from the competition and maintain increased durability in the face of industry challenges. With a strong outlook for 2025, Delta is well-positioned to continue its impressive performance and deliver the best financial year in its 100-year history.