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Delta Air Lines’ (DAL), shares rose Friday, after it reported revenue and earnings adjusted for the fourth quarter of fiscal 2024 that exceeded analysts’ expectations.
On revenues of $15.56 Billion, the carrier reported a profit for December of $843 M, or 1.29 cents per share. Visible Alpha surveyed analysts, who predicted net income at $1.15 billion or $1.78 for each share. Revenue was expected to be $14.89 billion.
The analysts’ estimate of $1.76 was surpassed by $1.85 on a adjusted basis.
Delta anticipates an increase in EPS of more than 10% from fiscal 2020 to 2025. “excluding the 45-cent impact of the CrowdStrike-caused outage in the September quarter.” The company expects a revenue growth of 7%-9% for the current quarterly period and earnings per share (EPS) between $0.70 and $1.00.
In premarket trading, shares rose by 4.5% immediately after the release of the report. In the past 12 months, they have risen about 50%. That is double what American Airlines shares (AAL), and still behind the United Airlines stocks (UAL), which have risen 135%.
The Growth of Premium Products
"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," Delta CEO Ed Bastian said. "Our differentiated strategy and best-in-class operations, combined with demand strength and an increasingly constructive industry backdrop, position us to deliver the best financial year in Delta's 100-year history."
At its investor day in November, Delta said rising travel demand across generational lines made it confident that it will continue to see revenue growth for its premium seating products. It said that premium revenue was growing. “outperformed main cabin by 6 points” The fourth quarter is the most important.
Earlier this week, Delta and Uber Technologies (UBER) announced a new partnership that will allow members of the airline’s frequent-flyer program to earn SkyMiles on Uber rides to and from the airport starting this spring. Uber is replacing rival Lyft (LYFT), which has been Delta’s ride-sharing partner since 2017.
Also this week, Delta announced a collaboration with Alphabet’s (GOOGL) YouTube that will allow SkyMiles members to watch and listen to ad-free content onboard its flights.
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