Delta Descends On Growth Projections

11/23/2024 6:41:53 AM

(MENAFN- Baystreet) Delta Air Lines (NYSE:DAL) on Wednesday said sales would grow in 2025, citing a“resilient economy” for strong travel demand and credit card spending, especially for higher-end offerings. It also said it expects to grow earnings in the coming years.

Delta forecast revenue growth in the mid-single digit percentage points next year compared with 2024, in line with the roughly 6% growth analysts were expecting.

In an investor day presentation, the carrier said it would expand flying by 3% to 4% next year from 2024. Delta also reiterated its fourth-quarter outlook. Longer term, it said it expects to grow adjusted earnings by 10% a year over the next three to five years.

Delta is the most profitable U.S. airline and its leaders tout its strong partnership with American Express (NYSE:AXP) and high demand for pricier seats toward the front of aircraft as part of its success.

The carrier has focused heavily on high-spending travelers, and in an investor-day presentation said it has an advantage because of sharp wealth growth in high-earning households since 2019. It also said millennials and Gen Z are the fastest growing consumer segments.

DAL shares lost $2.75, or 4.3%, to $62.00.

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