Delta Air Lines reported better-than-expected fourth-quarter results amid robust travel demand. The airline anticipates full-year earnings growth exceeding 10%. For the December quarter, adjusted earnings reached $1.85 per share, up from $1.28 a year earlier, and surpassing analyst expectations of $1.76 as polled by FactSet.
Operating revenue advanced 9% year over year, totaling $15.56 billion. Notably, total passenger revenue improved by 5%, while cargo revenue surged by 32%. On an adjusted basis, operating revenue increased by 5.7% to $14.44 billion, which also exceeded market predictions of $14.2 billion. The adjusted total revenue per available seat mile edged up 0.4% year over year.
However, it’s important to note that unit revenue faced declines in the domestic, Latin America, and Pacific regions, while the Atlantic market saw a gain of 6%. President Glen Hauenstein remarked, "Delta built momentum as we closed out 2024, with December quarter total revenue growth of 5.7% coming in ahead of guidance as our team delivered industry-leading operational performance and demand trends accelerated through the quarter." Following this announcement, shares of Delta surged by 9.1% in premarket trading. Operating expenses for the quarter amounted to $13.84 billion, an increase from $12.9 billion in the previous year.
Moreover, the non-fuel cost per available seat mile rose by 3.3% year-over-year. Looking ahead, Delta has projected adjusted EPS to exceed $7.35 for 2025, reflecting a growth rate of over 10% compared to last year's figure of $6.16. This guidance notably excludes a $0.45 per-share impact linked to the CrowdStrike-related global tech outage in July, which the airline reported.
Market analysts are currently projecting a non-GAAP EPS of $7.44 for the current year. Chief Executive Ed Bastian emphasized, "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." The airline also projects non-fuel unit cost growth to remain within the low single-digit range for 2025, as operational efficiencies are expected to counterbalance the effects of slower capacity expansion, as noted by Chief Financial Officer Dan Janki. For the ongoing three-month period, Delta anticipates adjusted EPS to fall between $0.70 and $1 on revenue growth projected between 7% to 9%.
Analysts currently estimate non-GAAP EPS of $0.77 and a sales forecast of $13.24 billion..