Delta Air Lines Reports Record Revenue of $61.6B in 2024, Profit Drops
Amidst strong travel demand, the airline achieves $3.5 billion in net income and forecasts continued growth into 2025
Delta Air Lines, Inc. (NYSE: DAL) has achieved record revenue of $61.6 billion in 2024, marking an all-time high in the company’s financial performance. The airline attributes its success in beating expectations to robust travel de mand leading to a net income of $3.5 billion. However, the annual profit was 25 percent lower than in 2023, when it made a profit of $4.6 billion.
Delta, headquartered in Atlanta, Georgia, also reported earnings per share of $5.33, resulting from its robust market presence, it said in a filing before the SEC. The results in the quarterly and annual filing at the SEC signify a turnaround in post-pandemic recovery despite headwinds from the massive network outage in July, demonstrating Delta's effective adaptation to the changing travel landscape.
The turnaround was even more notable because the airline flew into extreme turbulence in July after a massive network outage crippled its operations affecting about 7,000 flights worldwide. The airline is now locked in a legal battle with cybersecurity firm CrowdStrike, which, it accuses, showed negligence in protecting the network.
Investing in premium products
“2024 was a great year for Delta with our results reflecting differentiation from the industry and increased durability. Our people finished the year strong, delivering industry-leading operational and financial performance. Sharing Delta’s success is core to our culture, and I’m excited to recognize our people's outstanding efforts with $1.4 billion in profit sharing payments next month,” said Ed Bastian, Delta’s chief executive officer.
“As we move into 2025, we expect strong demand for travel to continue, with consumers increasingly seeking the premium products and experiences that Delta provides. Our differentiated strategy and best-in-class operations, combined with demand strength and an increasingly constructive industry backdrop, position us to deliver the best financial year in Delta's 100-year history, with pre-tax income greater than $6 billion, earnings per share greater than $7.35 and free cash flow of more than $4 billion.”
The company's fourth-quart net income at $863 million was down 59 percent from more than $2 billion in the same quarter of the previous year.
Delta's operating cash flow stood at an impressive $8 billion, contributing to a free cash flow of $3.4 billion. This financial health has enabled the airline to predict a promising 2025, with earnings projected to exceed $7.35 per share and free cash flow anticipated to surpass $4 billion. This outlook is supported by Delta's strategy of investing in premium products and services, which continues to resonate well with both leisure and corporate travelers.
The airline's operational prowess was further highlighted by its effective expense management despite industry-wide challenges such as fluctuating fuel prices. Delta's total fuel expense for 2024 was $10.5 billion, with an average fuel price of $2.56 per gallon. Moreover, non-fuel costs were managed efficiently, totaling $51.1 billion for the year.
Distributing profit share
Delta's workforce of 100,000 employees also saw significant benefits, with the company distributing $1.4 billion in profit-sharing, emphasizing its commitment to employee welfare and corporate success.
As Delta Air Lines continues to navigate the complexities of the global travel industry, its financial and operational strategies are set to foster further growth and profitability. With a century-long legacy and a forward-looking approach, Delta remains poised to maintain its leadership in the airline industry, delivering value to customers, employees, and shareholders alike.
