Delta outlook tops estimates as CEO expects 2025 to be airline's 'best financial year in our history'

Delta Air Lines' first-quarter outlook on Friday topped analyst expectations as the carrier forecast strong travel demand to start the year, which CEO Ed Bastian said will likely be the carrier's best ever.

Delta said it expects to generate more than $4 billion in free cash this year, up 18% from 2024 and in the midpoint of its annual target of between $3 billion and $5 billion. For the full year, it expects annual adjusted earnings more than of $7.35 per share.

"We feel quite good coming into the new year," Bastian told CNBC. "Everywhere, we see consumers continue to prioritize experience over goods."

That is setting up Delta for "our best financial year in our history," Bastian added.

Here's how the company performed in the three months ended Dec. 31 compared with Wall Street expectations based on consensus estimates from LSEG:

Delta said it expects revenue to rise 7% to 9%, ahead of the roughly 5% growth analysts polled by LSEG had forecast. The carrier expects first-quarter earnings per share of between 70 cents and $1, slightly ahead of Wall Street predictions of between 65 cents and 97 cents.

The Atlanta-based airline is the first major U.S. carrier to report earnings this quarter. Airlines have enjoyed strong post-pandemic travel demand, which analysts said is likely to continue this year, with a few deals along the way for consumers.

Delta has said it's been capitalizing on a boom in premium travel as more customers shell out for roomier seats or rewards credit cards.

Delta shares were up more than 6% in premarket trading. Airline stocks have rallied in recent months. Shares in Delta's chief rival, United Airlines, gained more than 130% over the past 12 months. Delta shares are up more than 45% in that period. 

Delta's