Earnings Alerts

Delta Air Lines (DAL) Earnings: Strong Q4 Results and Positive Outlook for Future Growth

By January 10, 2025 No Comments
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  • Delta Air Lines forecasts adjusted earnings per share (EPS) for the first quarter of 2025 to be between 70 cents and $1.00, compared to an estimate of 76 cents.
  • For the full year 2025, Delta expects adjusted EPS to exceed $7.35, slightly below the $7.45 estimate.
  • In the fourth quarter, Delta reported adjusted EPS of $1.85, surpassing both the previous year’s $1.28 and the estimate of $1.76.
  • Actual EPS for the fourth quarter was $1.29, down from $3.16 the previous year.
  • Adjusted revenue rose to $14.44 billion, a 5.7% year-over-year increase, surpassing the $14.16 billion estimate.
  • Passenger revenue reached $12.82 billion, increasing by 5.3% from the previous year, above the $12.62 billion estimate.
  • Cargo revenue surged by 32% year-over-year to $249 million, compared to an estimate of $204.3 million.
  • The passenger load factor remained stable at 84%, compared to an estimate of 84.7%.
  • Available seat miles increased by 5.2% year-over-year to 72.04 billion, above the 71.12 billion estimate.
  • Revenue passenger miles grew by 4.7% year-over-year to 60.39 billion, slightly above the 60.27 billion estimate.
  • Adjusted net income was reported at $1.20 billion, marking a 46% increase from the previous year, and exceeding the $1.15 billion estimate.
  • Yield per passenger mile was 21.22 cents, witnessing a slight year-over-year rise of 0.5%.
  • Delta anticipates strong travel demand in 2025, with consumers favoring their premium products and experiences.
  • The company forecasts a more than 19% year-over-year increase in adjusted EPS for 2025.
  • Delta expects its free cash flow (FCF) to exceed $4 billion in 2025.
  • First quarter revenue is projected to rise between 7% and 9% year-over-year.
  • The first quarter operating margin is anticipated to improve by 6% to 8% year-over-year.

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A look at Delta Air Lines Smart Scores

FactorScoreMagnitude
Value3
Dividend2
Growth5
Resilience2
Momentum5
OVERALL SMART SCORE3.4

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Delta Air Lines, Inc., a major player in the aviation industry, seems to have a bright long-term outlook ahead. According to Smartkarma Smart Scores, Delta scores particularly well in terms of Growth and Momentum, with a score of 5 for both factors. This suggests that the company is poised for considerable expansion and is gaining traction in the market. Additionally, it indicates that Delta is showing positive performance trends that may continue in the future.

While the company scores lower in Value, Dividend, and Resilience, with scores of 3, 2, and 2 respectively, the strong ratings in Growth and Momentum may outweigh these factors in the overall assessment. Delta Air Lines‘ focus on growth and its current momentum in the market position it favorably for the long haul, indicating potential opportunities for investors seeking growth prospects in the aviation sector.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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