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Delta Air Lines is projecting a record 2025 as it expects strong travel and premium demand to continue into the year. 

CEO Ed Bastian said he was expecting the current industry environment to “position us to deliver the best financial year in Delta’s 100-year history.”

The airline had record revenues for the fourth quarter, at $15.6 billion. 

“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,” Bastian said in an earnings release. 

For the first quarter of 2025, the carrier is projecting a total revenue increase ranging from 7% to 9%. 

Winter Travel Demand Surges

Between November and December, Delta said it had four of its top 10 revenue days in company history and double-digit growth in cash bookings, fueled by both leisure and corporate travelers. Some of the largest growth for Delta came from transatlantic travel, which increased 6% in unit revenues during the fourth quarter. Corporate sales were also up 10%, led by the technology and financial services industries. 

Delta president Glen Hauenstein said during a call with analysts that the transatlantic region had “outstanding performance” that was driven by U.S. travelers. 

“People are finding that particularly in Southern Europe, that the weather is actually pretty nice in the winter and the streets aren’t as crowded. So it’s not a bad time to go,” Hauenstein said. 

He added that in January, typically a slow month for airlines, Delta had already seen its two record sales days. 

Premium products and its loyalty program contributed to 57% of Delta’s revenue. The carrier’s remuneration from its lucrative partnership with American Express grew 14% in the fourth quarter, receiving nearly $2 billion. 

Delta Sees Some Impact From L.A. Wildfires

Even though wildfires have caused minimal disruptions at major Los Angeles airports, Hauenstein said the carrier has seen a decline in sales in the region. 

“As soon as the period ends, we can probably put a wrapper around how much we thought that cost us,” Hauenstein said. “But I don’t think it’s going to be significant to the quarter, hopefully not.”

As of Friday afternoon, LAX only had 15 cancellations, according to flight tracking site FlightAware. Travelers flying into Los Angeles had posted aerial videos of smoke near LAX and reported experiencing turbulence while landing at the airport. 

Hauenstein added that typically, after natural disasters, airlines see an uptick in demand.

“Unfortunately, after natural disasters, we actually see an uptick in demand as people go in to rebuild it, insurance adjustments come from all over the country,” he said. 

He pointed to Asheville, North Carolina, which had been hit by Hurricane Helene in November. 

“If you take Asheville, for example, we are actually having more traffic to Asheville than we did in the pre-pandemic or the preflooding experience as people go in to rebuild their homes and businesses,” he said. “So it’s an unfortunate occurrence, but I think nothing that will long term impact us.”

Delta Braces for a Second Trump Administration

Peter Carter, Delta’s chief external affairs officer, said the carrier had some “alternative ways” to mitigate the impact of tariffs for aircraft deliveries under a second Trump administration. 

President-elect Donald Trump has promised to implement tariffs, which could impact Boeing and Airbus if other countries decide to retaliate. Airbus, however, does have a factory in Mobile, Alabama, which could insulate the company from tariffs. 

“Our hope, of course, is that Airbus is not subject to tariffs, but because as we know, a substantial portion of those aircraft are produced in the U.S. and employ thousands of Americans,” Carter said. 

Carter added that Delta would also not walk away from its DEI and sustainability initiatives under a second Trump term. Republican leadership in the House has previously promised to roll back sustainability initiatives like sustainable aviation fuel tax credits outlined in the Inflation Reduction Act. 

In a Truth Social post announcing Fox Business host Sean Duffy as his nominee for Transportation Secretary, Trump said Duffy would “make the skies safe again by eliminating DEI for pilots and air traffic controllers.” There has been no evidence that DEI hiring practices in the industry have compromised safety. 

Companies like Walmart, McDonald’s and Ford have already walked back their DEI policies. 

“We are steadfast in our commitments because we think that they are actually critical to our business,” Carter said. “Sustainability is about being more efficient in our operations. And really DEI is about talent, and that’s been our focus. And of course, the key differentiator is our people.”

Airlines Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance. 

Read the full methodology behind the Skift Travel 200.

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