Delta forecasts ‘best financial year’ in 2025

Transatlantic traffic growth helped drive Delta Air Lines towards its most profitable year-end quarter as the US carrier forecast 2025 as being the best 12 months in its history.

The Virgin Atlantic partner saw pre-tax profit rise by $500 million year-on-year to $1.6 billion in what was described as the most profitable December quarter on record. 

International passenger revenue grew by 6%, with transatlantic, the largest international entity, delivering 6% growth in unit revenue “marking the strongest improvement of any entity this year”.

Managed business travel sales rose by 10% over the same three months in 2023, with growth led by the technology and financial services sectors.  

Delta saw four of the top 10 revenue days in the carrier’s history in November and December and double-digit growth in cash bookings driven by both leisure and corporate travellers.

“Recent corporate survey results indicate that 90% of companies surveyed expect their travel volumes to increase sequentially or stay the same in the March quarter and further into 2025,” the airline noted.

Chief financial officer Dan Janki said: “Delta delivered the most profitable December quarter in our history with pre-tax income of $1.6 billion, up $500 million over prior year.  

“Through the year, our teams delivered industry-leading operational performance and maintained a focus on driving efficiency that supported low-single digit non-fuel unit cost growth, consistent with our outlook at the start of the year and among the best in the industry.

“As efficiency gains continue, we expect non-fuel unit cost growth to continue in the low-single digits for the full year 2025 as efficiencies offset the impact of slower capacity growth and continued investments in our people and the customer experience.”

Delta reported annual pre-tax income of $5.20 billion, down from $5.22 billion in 2023 based on a 4.3% rise in operating revenue of $57 billion.

Chief executive Ed Bstian said: ”2024 was a great year for Delta with our results reflecting differentiation from the industry and increased durability.  

“Our people finished the year strong, delivering industry-leading operational and financial performance. Sharing Delta’s success is core to our culture, and I’m excited to recognise our people’s outstanding efforts with $1.4 billion in profit sharing payments next month.

“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.  

“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, with pre-tax income greater than $6 billion, earnings per share greater than $7.35 and free cash flow of more than $4 billion.”