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Citing strong demand and operational efficiency, Delta Air Lines (DAL, Financials) projects 2025 profits per share to reach $7.35 and free cash flow to top $4 billion. Pre-market activity shows the stock at $65.77, up 7.08%. Driven by varied income sources and cost control, the airline announced record revenue and profit for 2024.
According to Delta's release, operational revenue for the December quarter was $15.6 billion and, adjusted, was $14.4 billion. On both a GAAP and modified basis, operating income came out to be $1.7 billion. On a GAAP basis, pre-tax income was $1.2 billion; adjusted it comes to $1.6 billion. GAAP-based earnings per share for the quarter were $1.29; adjusted, they came to $1.85. Delta said in its statement that free cash flow for the quarter came to $678 million.
Delta said in its statement that operational revenue for the whole year 2024 was $61.6 billion, or $57.0 billion on an adjusted basis. On both GAAP and adjusted basis, operating income came out to be $6.0 billion. On a GAAP basis, pre-tax income came to $4.7 billion; adjusted, it came to $5.2 billion. On GAAP, EPS for the year was $5.33; adjusted, it came out to be $6.16. The company's statement shows that free cash flow for the year was $3.4 billion; adjusted net debt dropped to $18.0 billion, a $3.6 billion decrease from 2023.
Delta claimed to be still a top carrier in operational dependability. For 2024 it was ranked as the most on-time airline in North America, and it received the Cirium Platinum Award for the fourth year running. According to Delta's statement, it ran 38 new aircraft throughout the year, growing its fleet with models like the A321neo and A350-900.
Premium items and loyalty programs made up 57 percent of all income streams. Record booking days in November and December helped to drive a 5.7 percent revenue rise in the December quarter. Particularly Transatlantic, international lines showed growth, Delta said in its statement.
The airline claimed low single-digit non-fuel unit cost growth for 2024. The business claims that 18 percent year-over-year reduced fuel expenses helped to enhance operating profit.
Delta said it intends to pay workers $1.4 billion in profit-sharing in February.
This article first appeared on GuruFocus.