Delta Air Lines announces December quarter and full year 2024 financial results

Delta Air Lines today reported financial results for the December quarter and full year 2024 and provided its outlook for the March quarter and full year 2025.

Highlights of the December quarter and full year 2024, including both GAAP and adjusted metrics, are on page six and incorporated here.

“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'ss 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.”

DecemberQuarter 2024 GAAP Financial Results

• Operating revenue of $15.6 billion
• Operating income of $1.7 billion with an operating margin of 11.0 percent
• Pre-tax income of $1.2 billion with a pre-tax margin of 7.7 percent
• Earnings per share of $1.29
• Operating cash flow of $1.9 billion
• Payments on debt and finance lease obligations of $1.5 billion
• Total debt and finance lease obligations of $16.2 billion at quarter end

DecemberQuarter 2024 Non-GAAP Financial Results

• Operating revenue of $14.4 billion
• Operating income of $1.7 billion with an operating margin of 12.0 percent
• Pre-tax income of $1.6 billion with a pre-tax margin of 10.8 percent
• Earnings per share of $1.85
• Operating cash flow of $1.8 billion

Full Year 2024 GAAP Financial Results

• Operating revenue of $61.6 billion
• Operating income of $6.0 billion with an operating margin of 9.7 percent
• Pre-tax income of $4.7 billion with a pre-tax margin of 7.6 percent
• Earnings per share of $5.33
• Operating cash flow of $8.0 billion
• Payments on debt and finance lease obligations of $4.0 billion

Full Year 2024 Adjusted Financial Results

• Operating revenue of $57.0 billion, 4.3 percent higher than the full year 2023
• Operating income of $6.0 billion with an operating margin of 10.6 percent
• Pre-tax income of $5.2 billion with a pre-tax margin of 9.1 percent
• Earnings per share of $6.16
• Operating cash flow of $8.0 billion
• Free cash flow of $3.4 billion
• Adjusted debt to EBITDAR of 2.6x, down from 3.0x at the end of 2023
• Return on invested capital of 12.9 percent

Financial Guidance¹

2025 guidance for earnings greater than $7.35 per share is more than 10 percent growth year-over-year compared to a normalized 2024 earnings per share baseline, excluding the 45-cent impact of the CrowdStrike-caused outage in the September quarter.  On a non-GAAP basis, 2025 earnings per share guidance represents greater than 19 percent growth year-over-year.

 

Revenue Environment and Outlook

"Delta built momentum as we closed out 2024, with December quarter total revenue growth of 5.7 percent coming in ahead of guidance as our team delivered industry-leading operational performance and demand trends accelerated through the quarter," said Glen Hauenstein, Delta's president.  "With strength continuing into the new year, we expect March quarter adjusted revenue to be 7 to 9 percent higher than 2024 on growth in capacity and unit revenue."

• Demand accelerated through the quarter: Delta delivered December quarter revenue growth of 5.7 percent over the prior year, ahead of guidance of 2 to 4 percent growth on strong operational performance and an acceleration in demand through the quarter.  During the months of November and December, Delta saw four of the top ten revenue days in the company's history and double-digit growth in cash bookings driven by both leisure and corporate travelers.  Adjusted total unit revenue (TRASM) improved several points sequentially to up 0.4 percent year-over-year, including a 1 point expected impact from the election in November.
• Diversified revenue streams differentiate Delta's performance: Delta's diversified revenue base, led by premium and loyalty, contributed 57 percent of total revenue in 2024.  In the December quarter, premium revenue growth outperformed main cabin by 6 points.  American Express remuneration of nearly $2 billion grew 14 percent year-over-year, supported by an acceleration in card spend and acquisitions.  Cargo revenue was up 32 percent in the December quarter year-over-year, sequentially improving throughout the year, with full year revenue growth of 14 percent over prior year.
• Continued strength in international, led by Transatlantic: All three international geographies improved sequentially and relative to initial expectations, with international passenger revenue growth of 6 percent year-over-year in the December quarter.  The largest international entity, Transatlantic, delivered 6 percent growth year-over-year in unit revenue in the quarter, marking the strongest improvement of any entity this year.
• Corporate sales up double-digits with positive outlook: Managed corporate sales* were up 10 percent year-over-year during the quarter, with growth led by the technology and financial services sectors.  Recent corporate survey results indicate that 90 percent of companies surveyed expect their travel volumes to increase sequentially or stay the same in the March quarter and further into 2025.

Cost Performance and Outlook

"Delta delivered the most profitable December quarter in our history with pre-tax income of $1.6 billion, up $500 million over prior year.  Through the year, our teams delivered industry-leading operational performance and maintained a focus on driving efficiency that supported low-single digit non-fuel unit cost growth, consistent with our outlook at the start of the year and among the best in the industry," said Dan Janki, Delta's chief financial officer.  "As efficiency gains continue, we expect non-fuel unit cost growth to continue in the low-single digits for the full year 2025 as efficiencies offset the impact of slower capacity growth and continued investments in our people and the customer experience."

DecemberQuarter 2024 Cost Performance

• Operating expense of $13.8 billion and adjusted operating expense of $12.7 billion
• Adjusted non-fuel costs of $9.9 billion
• Non-fuel CASM was 13.72¢, an increase of 3.3 percent year-over-year
• Adjusted fuel expense of $2.4 billion was down 18 percent year-over-year
• Adjusted fuel price of $2.34 per gallon decreased 22 percent year-over-year with a refinery loss of 4¢ per gallon
• Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.2, a 0.9 percent improvement year-over-year

Full Year 2024 Cost Performance

• Operating expense of $55.6 billion and adjusted operating expense of $51.0 billion
• Adjusted non-fuel costs of $39.1 billion
• Non-fuel CASM was 2.8 percent higher year-over-year
• Adjusted fuel expense of $10.5 billion was down 5 percent year-over-year
• Adjusted fuel price of $2.56 per gallon declined 10 percent year-over-year and includes a refinery benefit of 1¢ per gallon
• Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.3, a 1.1 percent improvement year-over-year

Balance Sheet, Cash and Liquidity

"In 2024, Delta delivered $3.4 billion of free cash flow while reinvesting nearly $5 billion into the business.  With continued prioritization of the balance sheet, leverage improved to 2.6x and Delta returned to investment grade at all three credit rating agencies, accomplishing a key milestone and reflecting our financial durability," Janki said.  "In 2025, we expect to grow free cash flow to over $4 billion, supporting meaningful debt repayment and further leverage improvement to 2x or less as we progress towards our long-term gross leverage target of 1x."

• Adjusted net debt of $18.0 billion at December quarter end, a reduction of $3.6 billion from the end of 2023
• Payments on debt and finance lease obligations for the December quarter of $1.5 billion
• Weighted average interest rate of 4.3 percent with 94 percent fixed rate debt and 6 percent variable rate debt
• Adjusted operating cash flow in the December quarter of $1.8 billion, and with gross capital expenditures of $1.2 billion, free cash flow was $678 million
• Full year adjusted operating cash flow of $8.0 billion and gross capital expenditures of $4.8 billion, resulting in $3.4 billion free cash flow
• Air Traffic Liability ended the quarter at $7.1 billion
• Liquidity* of $6.1 billion at year-end, including $3.1 billion in undrawn revolver capacity

DecemberQuarter and Full Year 2024 Highlights

Operations, Network and Fleet

• Earned the Cirium Platinum Award for operational excellence for the fourth consecutive year and named the most on-time airline in North America, recognizing Delta's commitment to strong operational performance
• Operated the most reliable airline among our competitors in the December quarter, leading on all key metrics, including completion factor, and on-time departures and arrivals¹
• Took delivery of 11 aircraft in the December quarter, bringing full year aircraft deliveries to 38, including the A321neo, A220-300, A330-900 and A350-900 aircraft
• Began flying a new long-haul route to Brisbane this winter and expanded connectivity with nonstop flights from Tampa to Amsterdam, Orlando to London and New York to Lagos
• Completed DCA connectivity from Delta hubs with the launch of SEA-DCA starting in March 2025
• Announced first-ever nonstop service between Minneapolis-St. Paul and Copenhagen, expanding Delta's European network and increasing options to European destinations for Minneapolis customers
• Added 13 new Latin America routes from 6 hubs, increasing Delta's reach to winter leisure destinations

Culture and People

• Delta people earned $1.4 billion in profit sharing to be paid out in February, and $86 million in Shared Rewards for the year, recognizing the outstanding performance of Delta's 100,000 employees
• Highest scoring airline in the 2024-2025 All-American Executive Team rankings by Extel (formerly Institutional Investor) for the seventh consecutive year and earned the Most Honored Company designation
• Opened a new pilot training facility in Salt Lake City, a nearly 50,000-square-foot facility, constructed to host more than 1,000 training events every month
• Hosted "Breast Cancer One" charter for the 18^th year, bringing together 150 employees who have battled breast cancer and highlighting Delta's 19-year partnership with the Breast Cancer Research Foundation
• Contributed $1 million to the American Red Cross for Hurricane Helene and Hurricane Milton relief
• Partnered with Marine Toys for Tots for the 20^th annual TechOps Bike Drive in December and presented them with a record 1,700 bikes and over 2,000 toys
• Delta volunteers helped build four new homes with Atlanta Habitat for Humanity, bringing the total number of homes built or rehabbed to 287 across 13 countries
• Hosted Delta's 13^th annual Veterans Day Celebration, a two-day event led by the Delta TechOps team and Veterans Business Resource Group to honor the 11,000 veteran employees at Delta

Customer Experience and Loyalty

• Named No. 1 for business travelers for the 14^th consecutive year by Business Travel News, highlighting Delta's outstanding customer service and experience
• Led U.S. airlines in the Forbes Travel Guide's inaugural Verified Air Travel Awards, winning Best U.S. Airline, Best Domestic Business Class, Best U.S. Airline Lounge: JFK Delta One Lounge, Best Loyalty Program and Best Airline App
• Named Airline of the Year by Global Traveler; recognized by the 21st Annual Global Traveler Tested Reader Survey Awards for Best Airline website, Best Airline Lounges, Best Airline for Domestic First Class and Best Airline App
• Opened third Delta One Lounge in Boston, offering elevated services to customers including a one-of-a-kind culinary experience and access to the award-winning BOS Terminal E Delta Sky Club
• Opened first-ever Delta Sky Club at Charlotte Douglass International Airport (CLT), spanning over 14,000 square feet, an important milestone in strengthening Delta's presence in Charlotte
• Unveiled new cabin design to be implemented across the entire fleet, a modern interior designed to elevate the travel experience with new seating materials, enhanced lighting and a refreshed color palette
• Launched first-of-its-kind partnership with Shake Shack, offering burgers on select flights out of Boston, with plans for expansion throughout 2025
• Expanded Delta Digital ID to SLC and DCA with the TSA PreCheck® Touchless ID lane, giving customers access to the industry-leading touchless airport technology

Environmental, Social and Governance

• In partnership with the Minnesota SAF Hub, Delta announced a new blending facility set to open in 2025 in Minnesota and has successfully transported sustainable aviation fuel (SAF) via pipeline to MSP and DTW
• Began rolling out paper cups across the international network, with plans to expand across entire network in 2025, eliminating nearly 7 million pounds of single-use-plastic onboard annually once available system wide
• Delta's Carbon Council nearly doubled fuel savings from 2023, saving 41 million gallons of jet fuel² in 2024
• Began the installation of rooftop solar panels at Delta's headquarters in Atlanta, introducing renewable energy sources

DecemberQuarter and Full Year 2024 Results

December quarter and full year results have been adjusted primarily for the third-party refinery sales and gains/losses on investments as described in the reconciliations in Note A.

About Delta Air Lines Through exceptional service and the power of innovation, Delta Air Lines (NYSE: DAL) never stops looking for ways to make every trip feel tailored to every customer. 

There are 100,000 Delta people leading the way to deliver a world-class customer experience on up to 5,000 peak day flights to more than 290 destinations on six continents, connecting people to places and to each other. 

Delta served more than 200 million customers in 2024 -- safely, reliably and with industry-leading customer service innovation – and was recognized by J.D. Power this year for being No. 1 in First/Business and Premium Economy Passenger Satisfaction. The airline also was recognized again as North America's most on-time airline in 2024 and our people earned the Platinum Award for Operational Excellence from Cirium.

We remain committed to ensuring that the future of travel is connected, personalized and enjoyable. Our people's genuine and enduring motivation is to make every customer feel welcomed and cared for across every point of their journey with us. 

Headquartered in Atlanta, Delta operates significant hubs and key markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon and Tokyo. 

As the leading global airline, Delta's mission to connect the world creates opportunities, fosters understanding and expands horizons by connecting people and communities to each other and to their own potential. 

Powered by innovative and strategic partnerships throughout the world with Aeromexico, Air France-KLM, China Eastern, Korean Air, LATAM, Virgin Atlantic and WestJet, Delta brings more choice and competition to customers worldwide. Delta's premium product line is elevated by its unique partnership with Wheels Up Experience. 

Delta is America's most-awarded airline thanks to the dedication, passion and professionalism of its people. In addition to the awards from J.D. Power and Cirium, Delta has been recognized as the top U.S. airline by the Wall Street Journal; among Fast Company's Most Innovative Companies; the World's Most Admired Airline and one of the Best 100 Companies to Work For according to Fortune; one of Glassdoor's Best Places to Work; the top carrier for business travelers by Business Travel News; and topped 5 categories, including the Best U.S. Airline award, in Forbes Travel Guide's Verified Air Travel Awards. In addition, Delta has been named to the Civic 50 by Points of Light for the past seven years as one of the most community minded companies in the U.S. 

Forward Looking Statements

Statements made in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered "forward-looking statements" under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the possible effects of serious accidents involving our aircraft or aircraft of our airline partners; breaches or lapses in the security of technology systems we use and rely on, which could compromise the data stored within them, as well as failure to comply with evolving global privacy and security regulatory obligations or adequately address increasing customer focus on privacy issues and data security; disruptions in our information technology infrastructure; our dependence on technology in our operations; increases in the cost of aircraft fuel; extended disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC ("Monroe"), a wholly-owned subsidiary of Delta that operates the Trainer refinery; failure to receive the expected results or returns from our commercial relationships with airlines in other parts of the world and the investments we have in certain of those airlines; the effects of a significant disruption in the operations or performance of third parties on which we rely; failure to comply with the financial and other covenants in our financing agreements; labor issues; the effects on our business of seasonality and other factors beyond our control, such as changes in value in our equity investments, severe weather conditions, natural disasters or other environmental events, including from the impact of climate change; failure or inability of insurance to cover a significant liability at Monroe's refinery; failure to comply with existing and future environmental regulations to which Monroe's refinery operations are subject, including costs related to compliance with renewable fuel standard regulations; significant damage to our reputation and brand, including from exposure to significant adverse publicity or inability to achieve certain sustainability goals; our ability to retain senior management and other key employees, and to maintain our company culture; disease outbreaks, such as the COVID-19 pandemic or similar public health threats, and measures implemented to combat them; the effects of terrorist attacks, geopolitical conflict or security events; competitive conditions in the airline industry; extended interruptions or disruptions in service at major airports at which we operate or significant problems associated with types of aircraft or engines we operate; the effects of extensive government regulation we are subject to; the impact of environmental regulation, including but not limited to regulation of hazardous substances, increased regulation to reduce emissions and other risks associated with climate change, and the cost of compliance with more stringent environmental regulations; and unfavorable economic or political conditions in the markets in which we operate or volatility in currency exchange rates.

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and subsequent quarterly reports and other filings filed with the SEC from time to time. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of the date of this press release, and which we undertake no obligation to update except to the extent required by law.