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Delta Air Lines (DAL) reported record revenue for 2024 and topped its fiscal fourth quarter earnings expectations. Citi managing director Stephen Trent joins Morning Brief to discuss the results and the broader airline industry.
Trent notes that air travel preferences vary beyond first class and basic economy, creating "an ecosystem in between." He notes that network carriers like Delta have successfully capitalized on this middle market "in a way that discount carriers are not going to be able to do."
Looking ahead, Trent identifies three key trends affecting the airline sector: major carriers' revenue growth will surpass that of low-cost competitors, inflation and interest rates will remain elevated, and oil (CL=F, BZ=F) prices will trend downward over time.
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This post was written by Angel Smith