Delta's Bright Start: Expectations Soar for 2024

Delta Air Lines is kicking off 2024 with high hopes, as they've just shared their first-quarter forecast. The airline expects to generate over $4 billion in free cash this year, which is an 18% increase from 2024. They're aiming for annual adjusted earnings of over $7. 35 per share, a significant jump from previous years. CEO Ed Bastian believes this could be their best financial year yet, crediting consumers prioritizing experiences over goods.

Looking at the last quarter of 2024, Delta's performance was impressive. Their adjusted earnings per share were $1. 85, beating the expected $1. 75. Revenue also exceeded expectations, coming in at $14. 44 billion versus the forecasted $14. 18 billion. For the first quarter of 2024, Delta predicts revenue growth of 7% to 9%, higher than the roughly 5% analysts had estimated. Their earnings per share for the first quarter are projected between 70 cents and $1, slightly ahead of Wall Street's predictions. Delta is the first major U. S. airline to report earnings for this quarter. The post-pandemic travel demand has been strong, and analysts expect this trend to continue, with some deals for consumers along the way. Delta has been capitalizing on the trend toward premium travel, with more customers opting for roomier seats or rewards credit cards.

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