Delta's CEO predicts 2025 to be the airline's best financial year ever, surpassing expectations.

• Delta expects first-quarter earnings to be between 70 cents and $1, slightly above analysts' predictions.
• Sales and earnings estimates for the last three months of the year were surpassed by Delta.
• The carrier is the first of the major U.S. airlines to report results.

The first-quarter outlook for the airline exceeded analyst expectations on Friday, with CEO Ed Bastian predicting strong travel demand to kick off the year, which is likely to make it the airline's best ever.

Delta anticipates generating over $4 billion in free cash this year, which is a 18% increase from 2024 and falls within the middle of its annual goal of between $3 billion and $5 billion. Additionally, the company expects to achieve annual adjusted earnings of more than $7.35 per share for the entire year.

"Bastian stated to CNBC that they feel good entering the new year as they observe consumers prioritizing experience over goods everywhere."

Bastian stated that Delta is on track to have its best financial year ever.

Based on consensus estimates from LSEG, how did the company perform in the three months ended Dec. 31 compared to Wall Street expectations?

• Earnings per share: $1.85 adjusted vs. $1.75 expected
• Revenue: $14.44 billion adjusted vs. $14.18 billion expected

Delta anticipates revenue growth of 7% to 9%, surpassing the 5% increase predicted by analysts surveyed by LSEG. The airline expects first-quarter earnings to be between 70 cents and $1, slightly above Wall Street's forecast of between 65 cents and 97 cents.

This quarter, the first major U.S. airline to report earnings is based in Atlanta. Carriers have experienced strong post-pandemic travel demand, which analysts predict will continue this year with some consumer deals.

Delta has reported an increase in premium travel as customers are willing to pay for spacious seats or rewards credit cards.

Delta shares have surged more than 6% in premarket trading. Airline shares have experienced a recent uptrend. Delta's chief rival, , has experienced a remarkable growth of over 130% in the past 12 months. Delta shares have also increased by more than 45% in that period.

In the fourth quarter, Delta's partnership generated $2 billion in revenue, which was a 14% increase from the previous year. Additionally, revenue from premium seats, such as first class and premium economy, increased by 8% to $5.2 billion, while main cabin ticket revenue rose by only 2% to approximately $6 billion.

In the fourth quarter of 2023, the airline's unit revenue increased by 4%.

Delta's profit decreased by 59% to $843 million in the final three months of the year compared to the same period in 2023, while expenses, including payroll, increased by 7% or $942 million. Meanwhile, revenue grew by 9% to $15.6 billion from the previous year.

In the fourth quarter, Delta reported per-share earnings of $1.85 on adjusted revenue of $14.44 billion, both exceeding analysts' expectations.