Delta made $2 billion in profit during the fourth quarter
Delta Air Lines says it closed 2023 strong and expects another good year in 2024
Delta Air Lines earned $2 billion in the fourth quarter, posted record full-year revenue, and says it is buying more planes to boost its international flying.
The airline's shares fell 9% Friday, however, as the company pulled back on its profit forecast for 2024.
Delta said full-year earnings will be $6 to $7 a share — down from an earlier prediction of more than $7 a share. Analysts had already trimmed their expectations to $6.50 a year, but the update from Delta was enough to spook investors.
Delta is the first U.S. airline to post fourth-quarter results, and its report sent shares of American, United, Southwest, Alaska and JetBlue down between 4% and 11%.
Delta said Friday that it will buy 20 Airbus A350s and take options to buy 20 more of the long-range jetliners. Delta expects to get the first ones in 2026.
The A350s will have more premium seating than the planes they replace, which will play into Delta's strategy of pursuing high-end travelers who are more insulated from ups and downs in the economy.
Airlines were helped in 2023 by strong demand for travel from people who had spent most of the pandemic cooped up at home. Delta passengers flew 19% more miles last year than they did in 2022.
CEO Ed Bastian said he expects that trend to continue.
«We actually saw the highest cash sales day in our history on Tuesday,” Bastian said in an interview. “So our consumer is healthy (financially), our consumer wants to travel. That tells us it's going to be a very good year, 2024.»
Bastian said, however, he was concerned about higher maintenance costs, which he blamed on supply-chain disruptions, and an inability to receive new planes on
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