Delta Air Lines Stock Rockets After CEO Ed Bastian Projects 2025 As Best Ever Financial Year: Retail Sentiment Flies To Year-High
By Stocktwits Inc | First Published Jan 10, 2025, 8:01 PM ISTFor the fourth quarter of 2024, Delta reported operating revenue of $14.4 billion, marginally beating a Wall Street estimate of $14.2 billion. Earnings per share (EPS) came in at $1.85 versus an estimated $1.76.
Shares of Delta Air Lines Inc (DAL) shot up over 8% in Friday’s pre-market after the airline reported upbeat first-quarter earnings, and CEO Ed Bastian projected 2025 to be the firm’s best financial year ever.
Delta expects to generate pre-tax income of more than $6 billion and earnings per share (EPS) of more than $7.35.
Latest Videos
The EPS projection reflects more than 10% growth year-over-year (YoY) compared to a normalized 2024 baseline but excludes the $0.45 impact of the CrowdStrike-caused outage in the September quarter.
The airline estimates it will report a free cash flow of over $4 billion during the year, which is 18% higher than in 2024.
“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,” Bastian said in prepared remarks.
For the fourth quarter of 2024, Delta reported operating revenue of $14.4 billion, marginally beating a Wall Street estimate of $14.2 billion. Earnings per share (EPS) came in at $1.85 versus an estimated $1.76.
The firm also reduced its adjusted net debt by $3.6 billion to $18 billion at December quarter end versus 2023.
Delta also predicts March-quarter adjusted revenue to be 7% to 9% higher than 2024 on capacity and unit revenue growth.
The airline said its premium and loyalty streams contributed 57% of total revenue in 2024, with premium revenue growth outperforming main cabin by six points in the quarter.
Delta’s upbeat projection resonated with retail investors on Stocktwits as sentiment and message volume climbed to year-high levels. Retail sentiment was trending in the ‘extremely bullish’ territory (96/100) accompanied by ‘extremely high’ retail chatter.
Stocktwits user comments reflect an optimistic take on the stock following the upbeat earnings and projections.
Meanwhile, Delta's shares have gained over 45% over the past year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
subscribe to Asianet Newsable WhatsApp channel by clicking here.