About the company

Delta Air Lines is an American airline with nearly 100 years of tradition, headquartered in Atlanta. The airline handles thousands of flights daily, flying to nearly 300 destinations worldwide. Last year, it served more than 200 million customers. Its key hubs include cities such as Amsterdam, New York, Sao Paulo and Tokyo. It also supports global connectivity through strategic partnerships with Aeromexico, Air France-KLM and Virgin Atlantic, among others. Delta Cargo, a key part of the business, handles more than 12 million shipments annually, including critical goods such as medicines and organs for transplantation. The airline's commitment to excellence has earned it numerous accolades, including being named the best airline in the U.S. by several prestigious publications.[1]

Robust economic results

Delta Air Lines released its fourth quarter 2024 earnings results on January 10, 2025, along with full year figures. Both were record numbers, according to a company statement. In the latest quarter, it reported adjusted operating revenues of $14.44 billion with earnings per share (EPS) of $1.85. Both figures beat the forecasts of LSEG analysts, who had estimated revenue of $14.18 billion, while EPS was $1.75.[2]* Operating profit in the period under review came in at $1.7 billion. In November and December, the company managed to achieve four of the ten most profitable days in its history. For the full year 2024, Delta Air Lines reports that its adjusted operating income reached $57 billion, an annual increase of 4.3%. Full-year operating income was $6 billion with EPS of $6.16.* In addition, the carrier generated robust operating cash flow of $8 billion. Revenue from premium and loyalty programs accounted for the largest share of total revenue, up 57%. Revenues from premium services grew 8%, outpacing those generated by economy class tickets, suggesting that passengers are more willing to pay extra for convenience. Revenue from their air cargo business was up 32% in the last three months, with 14% growth for the year as a whole.

Strong results expected in the new year

CEO, Ed Bastian, expects continued demand, particularly for premium programs, and even stated that 2025 could be the best year in the company's history from a financial perspective. The carrier expects EPS to rise to $7.35, which would represent a 10% increase over 2024. It expects revenue in the range of 7% to 9% in the first quarter, with EPS between $0.7-$1[3], which also beat analysts' forecasts. Bastian, according to Reuters, expects the strong dollar to lead to record profits from transatlantic flights and also doesn't think that the devastating wildfires in Los Angeles will significantly affect the company's earnings.[4] In addition, the carrier will pay out $1.4 billion in profit sharing in February. [2]

Shares at record levels

The company's excellent earnings results and strong outlook have had a significant impact on its stock performance. They surged nearly 11% on Friday, January 10, 2025, reaching an all-time high of $68.12. The beginning of the next week brought a slight decline as they lost approximately 2.7% to close at USD 65.10 on 13 January 2025. Over the long term, however, the stock is in relatively good shape. Compared to last year, their price is up more than 73%. From a 5-year perspective, this was almost 5% growth.* The company's market value was about USD 43 billion on Friday, but that, like the stock, fell to USD 42 billion on Monday, according to Companiesmarketcap.com. Still, it ranks as the most valuable airline by market valuation.[5] *

Delta Air Lines share price performance over the last 5 years. (Source: Google Finance)*

To the airport with Uber

Delta Air Lines also announced in early January a change to its partnership where SkyMiles loyalty program members earn miles for rides to the airport. The airline has joined forces with Uber, a US taxi service. Members earn one mile for every dollar they spend on a ride to/from the airport with UberX, while rewards are higher with premium rides. They can also earn miles when ordering food through Uber Eats. In doing so, the collaboration replaces a previous agreement with rival carrier Lyft back forged in 2017. The move not only increases the flexibility of earning SkyMiles, but is also a strategic upgrade for Delta, as Uber has more than 160 million active users compared to Lyft's 24 million. Additionally, the airline has decided to enhance SkyMiles with a premium, ad-free version of YouTube, improving the overall rider experience.[6]

Conclusion

Delta Air Lines has shown with its record results last year that it is capable of not only meeting, but exceeding expectations. Through new partnerships and innovation, the company is securing a strong position in the marketplace. Expectations for 2025 are high, demonstrating the carrier's readiness to meet new challenges and continue to deliver exceptional results. [3]

* Past performance is no guarantee of future results

[1], [2], [3] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied by any forward-looking statements.

[1] https://news.delta.com/corporate-stats-and-facts

[2] https://www.cnbc.com/2025/01/10/delta-air-lines-dal-4q-2024-earnings.html

[3] https://ir.delta.com/news/news-details/2025/Delta-Air-Lines-Announces-December-Quarter-and-Full-Year-2024-Financial-Results/default.aspx

[4] https://www.investing.com/news/stock-market-news/delta-forecasts-the-strongest-profit-in-its-100year-history-3806220

[5] https://companiesmarketcap.com/airlines/largest-airlines-by-market-cap/

[6] https://www.investopedia.com/uber-replaces-lyft-as-delta-skymiles-partner-8771046