Delta Air Lines reported its earnings for the December quarter and the full year 2024, showcasing a record performance. In the December quarter, Delta achieved a pre-tax profit of $1.6 billion, equivalent to earnings per share of $1.85, marking an increase of over $500 million from the previous year. This represents the largest December quarter profit in Delta’s history. For the full year, Delta’s pretax income reached $5.2 billion, with full-year earnings per share at $6.16.
The company’s operating revenue for the December quarter was a record $15.6 billion, 5.7% higher than the previous year’s quarter and exceeding proactive guidance. The operating margin improved to 12%, up 2 percentage points year-over-year. Delta’s total revenue for 2024 was reported at $61.6 billion, a growth of 4.3% from 2023.
Delta’s cash flow generation was robust, resulting in $3.4 billion in free cash flow for the full year, which represented a nearly $1.5 billion improvement over 2023. The company also recorded operating cash flow of $8 billion, allowing for significant debt reduction. Total debt and finance lease obligations at the end of the December quarter stood at $16.2 billion, with an adjusted net debt of $18 billion, reflecting a $3.6 billion reduction from 2023.
Looking ahead, Delta has projected earnings per share for 2025 to exceed $7.35, representing growth of more than 20% compared to 2024’s reported figures. The guidance for the March quarter includes anticipated revenue growth between 7% and 9% and earnings per share ranging from $0.70 to $1.00, a potential doubling of earnings compared to the previous year.
Delta’s operational performance was noteworthy, with an emphasis on increased efficiency contributing to low single-digit non-fuel unit cost growth, consistent with prior guidance. The airline maintained a positive outlook with strong bookings leading into 2025, bolstered by a favorable demand environment in both leisure and corporate travel sectors. Delta’s approach focused on high-margin premium products and ensuring operational efficiency continues to generate solid financial metrics for the company.
In summary, Delta’s December quarter results established a strong financial foundation, generously supported by robust operational excellence, making 2024 a notably successful year and providing a promising outlook as they move into their centennial year.