Delta Air Lines Investor Day: US’ Most Profitable Carrier Expects Further Sales Growth In 2025, Lifts Retail Sentiment

Delta Air Lines ($DAL), the United States’ most profitable carrier, reportedly said that sales would grow in 2025 led by a resilient economy for travel demand and credit card spending.

For next year, the airline expects capacity growth of 3%-4% year-over-year (YoY), revenue growth of mid-single digits and non-fuel unit cost growth of low-single digits YoY.

The company also reaffirmed expected December quarter financial guidance. Delta had earlier said it expects Q4 EPS in the range of $1.60-$1.85 versus Wall Street estimates of $1.71. The airline expects revenue to increase by 2%-4% YoY versus estimates of a 4.1% growth.

Over the long term, the airline forecasts an adjusted earnings growth of 10% a year over the next three to five years, according to a CNBC report.

Delta’s president, Glen Hauenstein, reportedly said that nearly 15 years ago, only 12% of its domestic first-class seats were paid for while the rest were upgrades for frequent flyers.  Presently, over 70% of these seats are bought, including buy-ups after booking, he said, according to the report.

Meanwhile, CEO Ed Bastian reportedly said the Trump administration’s approach to regulation could be a “breath of fresh air,” while highlighting the President-elect’s statement that he would take a “fresh look” at regulation and bureaucracy.

Following the development, retail sentiment on Stocktwits jumped into the ‘extremely bullish’ territory (80/100) from ‘neutral’ a day ago.

Delta Air Lines’ Sentiment Meter and Message Volume as of 9:35 a.m. ET on Nov. 20, 2024 | Source: Stocktwits

Some followers of the ticker on Stocktwits expressed optimism on Delta’s update while some expressed skepticism.

One user questioned whether the airline’s target EPS is achievable in the current competitive environment.

However, another user believes the guidance was rosy.

Shares of Delta were trading over 1.5% lower on Wednesday. On a year-to-date basis, the stock has gained over 57%, significantly outperforming the benchmark indices.