Legacy Airlines Post Record Earnings, Outperform Post-Pandemic
Key Takeaways:
- American Airlines, Delta Air Lines, United Airlines, and Alaska Airlines announced record financial results.
- Premium cabins, transatlantic flights, and loyalty programs fueled growth for Delta and United.
- Despite challenges, Alaska Airlines recorded strong revenue after acquiring Hawaiian Airlines.
- American Airlines reported debt reduction and record loyalty program earnings.
- Delta remains optimistic with expectations of a record financial year.
- United Airlines witnessed a significant post-pandemic rebound with increased premium cabin and basic economy revenues.
Alaska Airlines:
- Record annual revenue of $11.7 billion, boosted by the acquisition of Hawaiian Airlines.
- Adjusted earnings per share exceeded forecasts.
- Loss expected in the first quarter but remains better than consensus expectations.
American Airlines:
- Record revenues of $13.7 billion in Q4 and $54.2 billion annually.
- Debt reduction goal achieved ahead of schedule.
- Loyalty program revenue increased by 14% year-over-year.
- Loss per share expected in Q1 due to demand trends and fuel price forecasts.
Delta Air Lines:
- Record revenues of $15.6 billion in Q4 and $61.6 billion annually.
- Remained the most on-time airline in 2024.
- Premium cabin revenue growth of 8%, offsetting flat main-cabin revenue.
- Optimistic outlook with expectations of record financial performance in 2025.
United Airlines:
- Record profit in Q4 with adjusted net income of $1.1 billion.
- Increased premium cabin revenue by 10% and basic economy revenue by 20%.
- Most flights and passengers carried in its history.
- Forecast adjusted earnings per share of $0.75 to $1.25 in Q1.