DAL stock soared Friday after Delta Air Lines crushed estimates for its Q4 results to round out a record year. Airline stocks followed Delta higher.
Delta reported a 44.5% earnings gain to $1.85 per share adjusted. Revenue came in at $15.56 billion, up almost 10%.
FactSet expected a 37.5% increase in earnings to $1.76 per share on about 4% revenue growth to $14.2 billion.
CEO Ed Bastian noted in the release that 2024 was the best financial year in Delta's history, bolstered by strong demand, desire for premium products, and an "increasingly constructive industry backdrop."
Glen Hauenstein, Delta's president, noted that demand trends accelerated throughout Q4 with strength continuing into the new year. International passenger revenue rose 6% for the quarter, led by trans-Atlantic flights.
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Delta guided 2025 expectations to earnings above $7.35 per share, representing more than 10% EPS growth. Delta expects adjusted 2025 earnings to increase more than 19%. The airline forecasts average earnings growth of 10% over the next three to five years.
Delta's 2025 free cash flow guidance was above $4 billion. The company expects to average $3 billion to $5 billion annually over the next three to five years.
For Q1 2025, Delta guided earnings to between 70 cents and $1 per share on 7% to 9% revenue growth.
FactSet expects Q1 earnings of 77 cents per share on 5.4% revenue growth. Analysts expect 2025 earnings of $7.44 per share on 5.7% sales growth to $60.275 billion.
Delta Air Lines Stock Takes Off
Delta surged 9% Friday to jump back above its 50-day moving average.
DAL stock is closing in on its record high of 67.50 on Dec. 5. Delta has jumped 79% from its early August low.
Shares rallied about 50% in 2024, with a bulk of the run-up starting late summer.
Rival American Airlines swung 4.4% higher Friday, while United Airlines climbed 3.3%.
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