Delta Air Lines closed out the year by doubling its quarterly profit as travel demand, particularly for international trips, helped drive record revenue. The airline reported fourth-quarter earnings of $2.04 billion. Delta Air Lines earned $2 billion in profit during the fourth quarter, posted record full-year revenue, and announced plans to buy more planes to boost its fleet. However, the airline backed away from its 2024 profit target due to persistently high costs and potential economic risks.
Record Profits and Revenue
Delta Air Lines reported a fourth-quarter profit of $2.04 billion, more than twice the amount from the previous year. This was largely attributed to strong travel demand, especially for international trips. The increased revenue helped the company achieve record full-year revenue as well.
Expansion Plans
In response to the positive financial results, Delta Air Lines revealed plans to purchase more planes to expand its fleet. The move aims to meet the growing demand for air travel and further capitalize on the recovery of the industry. This expansion effort demonstrates the airline’s confidence in the future prospects of the travel sector.
Adjusted Profit Outlook
Despite the impressive financial performance, Delta Air Lines adjusted its 2024 profit outlook. The company cited persistently high costs, including wages, as a factor contributing to the revision. Additionally, potential supply chain disruptions and economic risks played a role in the decision. Delta’s cautious approach highlights the uncertainty surrounding the recovery of the airline industry and the need for continued vigilance.
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Analyst Expectations
Analysts anticipated Delta Air Lines’ fourth-quarter earnings to be around $1.16 per share. However, the company exceeded expectations by reporting an EPS of $1.28. This positive outcome further solidifies the airline’s strong performance during the period.
Market Outlook
Delta Air Lines stock gained 22% in 2023 and has been identified as a top pick in the airlines sector by Morgan Stanley for 2024. This positive market outlook suggests confidence in the airline’s ability to navigate the challenges faced by the industry and continue its growth trajectory. The upcoming release of the fourth-quarter and full-year 2023 earnings will provide further insights into Delta Air Lines’ performance and its position in the market.
“Delta more than doubled its fourth-quarter profit as international travel demand drove record revenue, but the airline cut its 2024 earnings forecast due to high costs and potential economic risks.”