Delta Predicts Record-Breaking Profit in 2025

Delta Air Lines forecasts its 2025 profit will surpass Wall Street expectations, fueled by robust premium travel demand and strong pricing power. The airline’s shares soared nearly 11%, with competitors United Airlines and American Airlines also seeing gains of 5% and 3%, respectively.

Premium ticket revenue, a key growth driver for Delta, is outpacing main cabin ticket revenue and is projected to surpass it by 2027. In the December quarter, premium revenue growth exceeded main cabin growth by 6 percentage points. CEO Ed Bastian emphasized that Delta’s position as the nation’s premium airline has been instrumental in capturing higher-paying travelers.

Delta’s fourth-quarter adjusted profit of $1.85 per share topped analyst estimates of $1.75. For the current quarter, the company projects earnings between $0.70 and $1.00 per share. Full-year 2025 earnings are expected to exceed $7.35 per share, a record in Delta’s 100-year history.

A strong U.S. dollar and increased transatlantic travel are bolstering Delta’s outlook, with the company predicting record profitability in the transatlantic market. Despite concerns about rising ticket prices affecting demand, Delta reassures that fares remain reasonable and consumer interest in travel experiences remains high.

Analysts, including Citi’s Stephen Trent, called Delta’s outlook “very encouraging,” highlighting the airline industry’s resurgence and strong financial health. The rise in airline fares, while notable, has created a favorable environment for industry earnings, which J.P. Morgan described as a “new golden age” for U.S. airlines.

Related news: https://airguide.info/?s=A330

Sources: AirGuide Business airguide.info, bing.com, etc