Delta Expects Record 2025 Financial Year With $4B in Free Cash, Thanks to Premium Travel Boom

In 2024, Delta's Q4 revenue reached $15.6B, up 9% year-over-year, driven by premium travel growth and strong demand.

By Thea Felicity

Jan 10 2025, 09:06 AM EST

Southwest Airlines Announces It's Ending Its Open Seating — BURBANK, CALIFORNIA - JULY 25: Travelers disembark from a Delta Air Lines flight with Southwest Airlines planes in the background at Hollywood Burbank Airport on July 25, 2024 in Burbank, California. Southwest Airlines has announced it will discontinue its 50 year policy of open seating, instead opting for assigned seating that will include premium seating in an effort to broaden its appeal. Mario Tama/Getty Images

Just after topping the list of the most on-time airlines in the US, Delta is now looking at 2025 with a positive outlook as the first quarter promises results.

For CEO Ed Bastian, confidence in the airline's financial success this year has never been clearer after losing millions last year due to Microsoft tech outage. In fact, company earnings are expected to range between 70 cents and $1 in the first quarter, impressively higher than analysts had expected. The airline is specifically placing this outlook on consumer demand for air travel, especially in premium services, since passengers are now looking to pay for extra legroom and other travel luxuries.

In the last quarter of 2024, CNBC shared that the company reported $1.85 of adjusted earnings per share for the quarter, where Wall Street estimated it at $1.75. Revenues were at an estimated $14.18 billion, yet the airline managed to end the year 2024 with revenues at $14.44 billion.

Now, most of these increases were due to a surge in premium travel. This means revenue from travelers booking first-class and premium economy seats, grew by 8% in the said year.

Delta Airlines Revenue in 2025

Going forward, Delta Airlines is betting on a 7% to 9% revenue growth for the year, which will beat analysts' forecast of 5%. Luckily, this positive guidance seems to bode well for the airline, given the fact that demand for air travel remains strong post-pandemic, especially for those looking for more premium services, per WSJ.

Despite strong revenue growth, Delta reported profits plummeting by 59% in the fourth quarter, while net earnings reached $843 million. The fall was mainly on account of an increase in cost, especially on payroll, by 7%. The airline still believes that premium travel investments will continue to fuel growth in revenue and profitability throughout 2025.

The stock price saw a dramatic increase of more than 6% in premarket trading as investors reflect the company's strength and great prospects. The same can be compared to the airline industry, which also shows optimism in the same direction, as investors have seen greatly increased values for shares sold on major airlines such as United Airlines recently.