From CNBC: 2024-11-20 07:28:01

Delta Air Lines projects revenue growth in the mid-single digit percentage points for 2025, driven by strong travel demand and credit card spending. The airline plans to expand flying by 3-4% next year and expects 10% annual growth in adjusted earnings over the next 3-5 years. Delta’s focus on high-spending travelers has been key to its success, with partnerships like American Express boosting profits. The carrier’s upbeat outlook contrasts with Target’s profit warning, reflecting differing consumer spending trends. Delta’s rival United Airlines has also seen success in capturing high-end travelers, with both airlines outperforming the broader market. Delta has shifted its revenue mix towards premium seats and loyalty programs, moving away from main cabin ticket sales. The airline’s president, Glen Hauenstein, highlighted the shift towards more purchased first-class seats, a departure from past practices of offering frequent flyer upgrades. Delta is exploring new cabin segmentation strategies, including options for front-of-plane travelers beyond premium economy and basic economy. Executives face questions on future demand, cost control, and measures to prevent another major outage like the CrowdStrike incident last July.



Read more at CNBC: Delta forecasts sales growth in 2025 thanks to ‘resilient economy’