Delta Air Lines (NYSE: DAL) has announced its financial results for the December quarter and full year 2024, revealing a record performance. The company’s operating revenue reached $15.6 billion for the quarter, with an operating income of $1.7 billion, marking an 11% operating margin. Notably, Delta achieved a pre-tax income of $1.2 billion, translating to a pre-tax margin of 7.7%.
The earnings per share (EPS) for the quarter stood at $1.29. On a non-GAAP basis, operating revenue was slightly lower at $14.4 billion, but EPS was higher at $1.85. This performance reflects Delta’s ability to deliver strong financial outcomes while maintaining industry-leading operational efficiency.
Delta Air Lines Reports Record December Quarter
The full year 2024 was also a landmark period for Delta, with GAAP operating revenue totaling $61.6 billion and an operating income of $6 billion. The company’s pre-tax income for the year was $4.7 billion, with an EPS of $5.33.
On an adjusted basis, Delta’s operating revenue was $57 billion, representing a 4.3% increase from the previous year. Adjusted pre-tax income was $5.2 billion, with an EPS of $6.16. The airline’s strong cash flow generation resulted in $8 billion in operating cash flow and $3.4 billion in free cash flow, underscoring its financial strength.
When comparing the December quarter’s performance against market expectations, Delta Air Lines exceeded revenue predictions but fell short on EPS. Analysts had anticipated an EPS of $1.75, whereas Delta reported an EPS of $1.29 on a GAAP basis, and $1.85 on a non-GAAP basis.
However, Delta’s operating revenue of $15.6 billion surpassed the expected $14.13 billion, demonstrating robust demand and effective revenue management strategies.
The airline’s ability to outperform revenue expectations was driven by a 5.7% increase in adjusted revenue for the quarter, which was above the guided range of 2% to 4%. This growth was supported by strong operational performance and accelerating demand, particularly in premium and loyalty segments. Delta’s diversified revenue streams, including a significant contribution from its partnership with American Express, played a pivotal role in this revenue outperformance.
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Guidance and Future Outlook
Looking ahead, Delta Air Lines has provided optimistic guidance for 2025. The company projects earnings per share to exceed $7.35, reflecting more than a 10% growth compared to a normalized 2024 baseline, excluding specific impacts.
Additionally, Delta anticipates generating over $4 billion in free cash flow for the year. Delta expects revenue growth for the March quarter between 7% and 9%, with EPS ranging from $0.70 to $1.00. This guidance underscores Delta’s confidence in sustaining demand and operational excellence.
Delta’s strategic focus on premium products and experiences will drive future growth. The airline’s customer experience and operational efficiency investments are anticipated to support continued financial success. With a constructive industry backdrop and strong travel demand, Delta is well-positioned to achieve its financial targets and deliver a record-breaking year in its history.
Delta’s operational achievements in 2024 were noteworthy, with the airline earning the Cirium Platinum Award for operational excellence for the fourth consecutive year.
The company also expanded its network with new routes and increased connectivity, enhancing its global reach. Delta’s commitment to customer experience was evident through its recognition as the top airline for business travelers and its leadership in customer service innovation.
Culturally, Delta reinforced its commitment to its workforce by announcing $1.4 billion in profit-sharing payments to employees, reflecting the airline’s dedication to recognizing their contributions. The airline’s focus on sustainability and community initiatives, such as partnerships with the American Red Cross and Habitat for Humanity, further exemplifies its commitment to social responsibility.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
