A Delta plane at an airline hangar in Atlanta
Leslie Josephs/CNBC
Delta Airlines It said on Wednesday that sales will grow in 2025, citing strong travel demand and a “resilient economy” for credit card spending, especially premium offers. An increase is expected.
Delta forecast revenue growth in the mid-single-digit percentage points next year compared to 2024, in line with analysts’ expectations of about 6% growth.
In an investor day presentation, the carrier said it would fly 3% to 4% next year through 2024. Delta also reiterated its fourth-quarter outlook. Longer-term, he said he expects adjusted earnings to grow 10 percent annually over the next three to five years.
Delta is the most profitable US airline and its leaders claim a strong partnership with it. American Express And as part of its success, high demand for premium seats in the front of the plane. United AirlinesHowever, rising profits and high-end travelers have stepped in. Delta shares are up 60% so far this year through Tuesday’s close, while United shares are up 128%. Both are outperforming the broader market and other carriers.
Delta said only 43% of its revenue this year came from main cabin tickets, with 57% coming from premium seats and its lucrative loyalty program. It accounted for more than 60% of the main cabin revenue in 2010.
The carrier has spent years working to get customers to pay for first class, the seats it largely gave away in years past.
About 15 years ago, about 12 percent of Delta’s first-class seats were paid for and the rest were upgraded for frequent flyers, Delta’s president, Glenn Hevinstein, told reporters. Now, more than 70% of these seats have been purchased, including purchases after booking. He said the change was initially “painful” for some passengers.
Hauenstein said Delta is looking for new ways to differentiate its cabin after the carrier — and competitors — spent years breaking up coach class into options like premium economy, extra legroom seats and basic economy. Havenstein said that although he did not provide details, he is also considering more options for passengers seated in the front of the plane.
During their presentation, airline executives may face questions about future demand, cost control and measures taken by the airline to avoid another repeat of the mass impact. Crowd strike Closing last July
