Delta Air Lines 2024 Performance: A Financial Flight Path Worth Watching

Delta Air Lines is soaring into 2025 on the back of an exceptional financial performance in 2024, combining record-breaking revenues, operational excellence, and a clear strategy to maintain momentum. Here’s a closer look at the airline's 2024 results and what it signals for investors.

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A Year of Records and Resilience

Delta reported record revenues for both the December quarter and the full year 2024. With an operating revenue of $61.6 billion (up 6% year-over-year) and adjusted revenues of $57 billion, the airline outperformed its peers, capturing nearly half of the industry's profits. The December quarter alone generated a pre-tax income of $1.6 billion, with operating margins of 12%. Full-year free cash flow stood at $3.4 billion, a nearly $1.5 billion increase from 2023.

Some highlights:

• Earnings per share (EPS): Adjusted EPS was $6.16 for the year, up from $6.25 in 2023, despite absorbing the impacts of a $0.45 per-share charge related to a cybersecurity outage.

• Operational Excellence: Delta achieved 78 "brand-perfect" days and won Cirium's Platinum Award for operational excellence for the fourth consecutive year.

These metrics reflect Delta's strong recovery post-pandemic and its ability to leverage demand trends in the airline industry.

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Key Revenue Drivers: Diversification at Work

Delta’s success is tied to its diversified revenue streams:

1. Premium and Loyalty Programs
   Premium cabin sales and loyalty programs powered by Delta's partnership with American Express remain standout performers. Premium revenues grew 8% year-over-year, while loyalty program revenues jumped 9%. American Express remuneration hit $7.4 billion, with co-branded card acquisitions exceeding one million new members in 2024.

2. International Growth
   International routes, especially transatlantic ones, emerged as robust growth areas. Unit revenues on transatlantic routes increased by mid-single digits, driven by high U.S. demand and favorable currency dynamics.

3. Cargo and Ancillary Revenues
   Cargo revenue rose 14%, and ancillary businesses posted a 37% year-over-year growth, showcasing Delta’s ability to maximize revenue across its ecosystem.

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Cost Management: Focus on Efficiency