DAL - Earnings call transcript Q4 2024

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Operator

Good morning, everyone, and welcome to the Delta Air Lines December Quarter and Full Year 2024 Financial Results Conference Call. My name is Matthew, and I will be your coordinator. [Operator Instructions] As a reminder, today's call is recorded. [Operator Instructions] I would now like to turn the conference over to Julie Stewart, Vice President of Investor Relations. Please go ahead.

Julie Stewart

Thank you, Matthew. thanks year us XXXX and quarter our everyone, full and earnings morning, for for joining December Good call.

[ Janki. and Joining our us of Dan an sheet. CFO, Delta's Hauenstein; will strategy. an environment, and update CEO, are balance open costs Dan our provide Ed Bastian; performance will call from our and President, overview Atlanta with our Ed will today on ] Glen revenue the and Glen discuss the

discussion risks contains materially or the today's statements that Instructions] that events. beliefs reminder, [Operator to from As cause our forward-looking expectations statements. All represent a differ could forward-looking results actual forward-looking and future the about statements involve uncertainties

We'll exclude the and may Some factors also items are special cause non-GAAP that described financial otherwise all differences measures, noted. SEC results of such discuss unless filings. in Delta's

non-GAAP You on Ed. that, turn can the measures call ir.delta.com. And the Investor of a to with reconciliation page at I'll find over our Relations

Ed Bastian

joining We Well, thank you, everyone Julie, morning. and appreciate us good today.

have the start, words wildfires that affected. I communities Before aid first at few devastating out are American the who by of the Red in also million the family communities a who safe. Cross wanted We're passing heroic say on individuals, risk grateful working personal We $X being been yesterday donate President Delta our region keep the responders to announced to to impacted to those will go to the recent are entire families Carter. and to incredibly the all Delta Southern great who we California. in of the hearts

his him impact deregulation each Delta a marks profit the President per this Carter's on we achieved the had #X with during of the and multiple administration last peer set life the his connect we largest has He thank December both always I knowing man. team to a quarter holiday guidance top his industry, truly Carter many staff affordable life. Earlier of of motto Americans. keep Delta's and Delta's profit Among of industry-leading members the flight honor full many pretax on air reported outstanding customer our all season. I of $X.XX close more the million quarter making system and our more want our our accomplishments, history, family, than operationally service President as to a was our at performance. outstanding revenue $XXX a and improving mission their This of the throughout and strong climbing. on we are took record December billion, life The factor travel performance every quarter December team year $X.X operational leader all with greet the He accessible performance December end his reported to and on-time the year. Operationally, with on We morning, financially. completion on the airline, deep great achievements as and to busy gracious His XXX,XXX of year, single privilege earnings over in efforts, Delta had we of results. celebrate traveled for travel particularly led always delivered amongst world. our on. entire quarter. and and Georgia-based And met, the share memory behalf a and of occasions. genuine personally As legacy to to embodied time ever I've

of the operational excellence delivered and days. teams Award the brand of XX will we year on-time operating 'XX, perfect for billion Platinum with week, margin pretax Cirium's measures was our key nearly operational all Delta profitability. a with America. Financially, most North Last airline in fourth and industry's consecutive full our recognized XX% the across as the $X.X lead the results double-digit expect For income, year industry for representing

S&P $X.XX half Delta's XXX the return durability. Full XX% in $X is differentiation the the to of initial year This of S&P 'XX. above of CrowdStrike quarterly was for guidance the at agencies. our reflects Free quarter. further X sustained performance reduction generation supported the capital and midpoint expected to billion, the industry the in XX% last billion investment-grade returning of when flow upgraded on improvement to and of $X.XX September the year. Recognizing nearly of increase double share level $X.X lead invested sheet our earnings dividend impact Our month, start during the at a of debt per foundation, balance upper outage is and the Delta the industry. over financial to our from caused all of $X.X year the credit normalizing Robust rest $X our a strength cash the major cash

not would results Delta be possible work these Now incredible of people. without the the

to are we our with in more provided rest and profit-sharing that The their commitment competitive proud commitment of combined. profit performance February. recognize Valentine's reflects our on performance Day pay to industry are industry-leading well-earned of best-in-class This Our our customers. and X% their I'm rewards. In announce people and employees XXXX X in #X a the Delta to advantage, will is employees and business, one will payouts pleased sharing with celebrate XXXX, than service in them in for industry-leading represent best to history billion expected the to with the operations Delta's increase, are we we our be the and $X.X top the

track where are we our a creating growth and financial with year revenue and continuing over spending last financial expect consumer co-brand to accelerated. financially out Now and taking Across line by the prioritize great healthy to grow in industry, margins to and travel are top is record margin experiences. Closing corporates backdrop. best an X% earnings to an X double XXXX, profitability. expansion the is by momentum The we quarter, driving off turning in carriers year. card improve continues constructive and history points growth is to air on our spending outlook. the and their to on saw March X%, increasingly expand the U.S. from to demand nearly we This deliver consumers action 'XX health, start, acceleration into

earnings reduction CrowdStrike, for of Delta, an ratio target expect in of year, less. more to XX% over long-term XXXX, average the greater down cash debt important XX% to bringing growth. Cash For our free compared $X generation EPS, we differentiator than annual reported. leverage further generate share or and flow, excluding $X.XX, full to and Xx increasing per supporting we expect of to billion of is as ahead than normalized a comparing growth the When impact our this represents XXXX

we investment focused differentiated shared a experience November, As our on industry. capitalizes at the been years foundation. of has Delta in financial clear never and Entering Investor customer Delta next more brand, XX in that century from our flight, Day has of strategy

with miles Premium travel, and creates our rides our is personal a As to members. the brand the satisfaction Sphere. introduction assistant products us exclusive and music partnership tool in video includes Concierge the Uber that coming access on at partnerships superior I and the with fast, annually, and is century in new we and greater continued digital our we from and your this world's day. Together, connecting travel honored customer via Delta a SkyMiles into drive partnership we experience. Tuesday seat, Delta SkyMiles ecosystem Concierge, for and are Delta to turn Delta an keynote will They to over space, partnerships our the that providing had extend for customers ad-free, our Sync deliver our how with where journeys enable vision deliveries million to seamless built the we of loyalty our expand screens these And Sync's membership. U.S. including well the what honor needs owners. we deliver driving as reflect to differentiate night, that new new unique make Delta CES months. benefits provide arriving of streaming innovation new investing flight the provide board technology by and the of at to members Delta the world, leaders This presented experiences exciting grow the a YouTube powered our deepening momentum SkyMiles of deliver of next consumer year, to performance. And with unique to further members members in Delta that we home better generative and and continue anticipate it giving AI Delta improving industry-leading free relationship WiFi commitment Delta exclusive and and the integrate Glen. that customers This the travel air people value further YouTube, a largest and of customers' personalized positioned serves will of and eligible Las of With app, stressful. The easier and opportunities phase for for next range to SkyMiles experience. new evolution which previewed partnerships will leverage another of broadening earn XXXth with SkyMiles elevate in I'll innovation every to now empower and year seatback Fly travel Vegas XXX announced people our entering support a Delta's less starting the closing, engagement beyond to later to to year XXXX category our Delta. In customers address platform more our includes virtual century Sync, members new to are In

Glen W. Hauenstein

sectors. by and our demand. a record Ed, of great we operational Post Strength sales. Total across growth in leisure the grew across in picked revenue driving and XX in you, guidance unit was point election, election saw XXXX the start ] driven X and for unit quarter Thank points geographies. performance billion, and by volume above nicely all our geographies higher performed top fare over X.X% X history cash of [ and strength revenues following top industry-leading from and closing $XX.X international unit thanking the with X.X up activity prior the sales delivering improvement ahead double-digit their good strong want employees all of and quarter, work and ] revenues a I X improved both to built than year. December revenue revenue year, end our geographically days our in sequential in year-over-year, everyone. morning, all [ hard recorded reports a XX% booking on step-up and corporate sequentially. through travelers, dedication expectations. Corporate Domestically, and in broad-based both improving with

an on year-over-year acquisitions. a quarter, XX% really trends broad-based nearly billion $X Express up in acceleration saw American spend the also of with in acceleration remuneration and -- of co-brand We card during

above X% all leading billion, the prior diversified XX% over For $XX loyalty Premium XXXX's delivered in over revenues the we and the for revenue unit full reaching of and revenue X growth a record quarters over up year, approximately positive premium, XXXX card and new cabin cargo X% American throughout spend outpaced by single-digit [ prior including of X% billion record year revenue year, with performance contributing year, acquisitions. revenue. with of streams, from with main in remuneration driven million up high co-brand royalty total 'XX. Total $X.X Express was one ]

Cargo towards year. are throughout XX% growth $XX with in another we improvement XXXX the over in progress billion. of grew year single-digit long-term of in goal our 'XX co-brand high confident We sequential as remuneration revenue

improving and Turning capitalizing strength our demand Delta to industry dynamics. outlook. is on

is positioned across well an Transatlantic season core and over mid-single of be Delta our to few higher strengths focus sale to the improvement up benefiting at considerable from environment We of the quarter with the optimize months revenues strong on results. hubs. U.S. last of X% revenue growth ahead sequentially lead expect remains is we year, core supply as robust revenue expected unit unprecedented progression removed as point with several digits the in quarter capacity this Atlantic row. with to for a the all off-peak the demand points geographies. Domestic in our and in improved extension March unit up Demand our than second backdrop last industry. X% unprofitable as supply is in across is

overall Air, quarter record have is spring visibility international into the third and entity. Latin consecutive our unit our and Korean positive for revenue We to profitability continue be sequentially be our closing Asiana. on We inflect South joint where to and of -- sequentially This largest investments increased with connectivity even expanding are operations over merger for congratulate to margins LATAM. mature, long-haul options as our the our and levels. We good for the venture leading forward negative Trends integration. further America mid-teens coming customers another facilitate to particularly increasing Seoul Pacific at in joint following our connectivity and Pacific year in are improve expected partner, will Unit along years. record and we expand look their venture improving on further partner, capacity better summer revenues our to expect The growth. have the capacity of is acquisition revenue increases. expected opportunity to the

network for to full plans the Turning year. our

multiyear we As seats we expect will in our core of hubs our internationally, X% restoration and X% in growth XX% investment with Investor XX% growth than be of is Day, Domestically, and profitable noted phase. to in capacity our in XXXX, increase premium incremental following to cabins. more normalizing most

hubs, health I turn the high-margin opportunity in positioned upside in financials. in industry margins great best profitable centennial a we across premium XXXX, over excited to XXXX talk cabin the are we year we it ability main to are with about closing, am capture the make Dan on history. And We to growth as in had confident our cabins improvement improves. In drive margin that, in most efficient I'll about as and our well to and our focus our to Delta's

Daniel Janki

higher top year-over-year. Operating share closed In profit good guidance and XX% a incredibly Thank for record end the their XXXX. hard of over were you, year. and delivered prior we XX% more points fourth in proud Glen, the out December of the at team position earnings of everyone. and We morning to strength. work revenue than a of in X $X.XX quarter year quarter, the I'm margins our of with the up per Delta

and delivered year $X.XX double-digit and operating unit For XX%, a a the year company-wide efficiency, our earnings per margin with of a full through full on of the cost teams performance year, reported on operational low growth. focus on we strong return of invested nonfuel share target capital single-digit the

nonfuel we year, for our our unmatched SkyMiles WiFi invested in through $XX During sheet the cash flow grade reinvesting generated leverage completion the is reflecting at pay better balance with of including $X business, financial early and into of generational X at rollout for customers lounges And differentiating billion the And the in our Delta benefit $X.X free year X.Xx and upgrades. investing increases. billion One the billion. our and Delta people Delta with after and was cash repayment generation the relative cost in while of ongoing quarter, airport unencumbered investment $X.X and XXXX billion, of debt billion our supported we of delivering full members, to $X our fast, of introduction at industry in assets major the performance. Operating levels $X agencies, return X of back all rating repayments. cash durability. free flow ended billion. December Strong credit We gross

turning Now our outlook. to

drive shareholder cash financial financial operating to guidance aligns to As growth, including metrics the providing leverage. On X-year basis, flow on that that be color our quarterly value, X- a primary we'll framework, providing full focus year for and metrics. directional effort margins to guidance EPS, revenue unit EPS, we of on with ongoing and part are

X points $X.XX For unit growth the expected of quarter, a expect of of of represents quarter. nearly X% and cost midpoint. with we similar X% be growth doubling to up low an earnings the more share. March December and earnings year-over-year quarter performance digits X%, March the per at X% Nonfuel the This $X revenue to than is single expansion in margin to to operating to margin of

efficiency. we improvement we as nonfuel continue progresses, As growth drive cost should to in the year see

billion we than and cash while leverage premium annual streams outlook incorporates target and per as year, including our margin For long-term expansion improvements earnings of revenue growth in loyalty across of earnings average like XX%, of business. Xx share from less. of high-margin per Free full our or the ahead $X of mix efficiency opportunities control, the grow greater with flow expect greater we driving $X.XX This share. than

providing additional Glen Ed main upside continues for backdrop cabin. the from noted, margin improve, As to potential industry and the

funded We even half low our expect single maintenance people, being and utilization begins by X normalize. growth improved points capacity to in existing high-margin our are regional of low growth help is investments and to This to expense ] ongoing XXXX long-term deployed our as core down as with digits, consistent customer cost up experience. In capacity able fund nonfuel we XXXX, will [ mainline primarily hubs. our last from capacity better our X performance and target of fleets incremental and into year's both unit our our is -- to our leverage growth in assets expected

expect final into generational capacity people where with airport gain groups. XXXX growing our are and below opportunities developments. across year experience is growth workforce our another our We our operational as year headcount the of is

now positioned the to several experience of per completion, their a cost we well Delta. our is next over will grow cash nature remains With for that into decades as an for differentiator improve given important with ground long-term premium we Delta, assets. Strong unique time employment these investments, the flow are

capital flow current billion expect for free $X to XX% XX XXXX. including deliveries improvement of and into lounges. we and Our $X over continued our market investment reinvest One Clubs outlook and technology more cap than Capital more including allocation, cash approximately than million Delta $XXX of and facilities, the aircraft in Sky billion is business, of

leverage value Xx. In gross paydown closing, of opportunistically this year debt durable as long-term capital invested we cost return progressing executing debt to long-term will on our debt flow higher remains We less, balance margins, priority. our plan financial this Delta the against expect industry-leading target Xx to billion or significant and our business, make target and $X towards XXXX and free of end of progress further maturities with earnings the expand investment-grade our year. Returns repay and for creating we in deliver XX% year investing is strengthen our framework cash Beyond our remain sheet. pay and towards to cash of

are excited for would that for that, We Julie to I every I'll people momentum all with do turn day. And [ like our a about to ] for year our enter historic back thank as they it Q&A. we Delta.

Julie Stewart

Thanks, Dan. Matthew.

will analyst open for Q&A. now We up it

Operator

Catherine Sachs. from question [Operator coming Goldman from Instructions] Your first is O'Brien

Catherine O'Brien

on back be to good It's of things. one these

be if [ we fair mid-single-digit $XXX after that beat baked and to be year I higher don't revenue prepared but Dan So love his bit much your hinted quarter on potential quarter conservative a fourth back start revenue that was drives pretty the greedy of in the upside ], to from I full upside, a single-digit your just million? want revenue the in for then year in half high guide. stands assume And But million greater than commentary And dig greater has that $XXX piece mil fourth with than there? at to to revenue the what of I'd that maybe guide was prior would can $XXX expecting. starting else little the assume around it upside you're growth, growth off full outlook and remarks,

Daniel Janki

points, as -- of think about about X% talked XX% about and at that digits, you about when we earnings about X about growth. Investor growth revenue margin basis and as you expansion the of Well, you think single [ growth gives low talked in you with with capacity X] it Day --

So relates focused that elements driving growth, revenue those we with from putting it of control, on visibility today can provides as that year, really quarter the And along that. we loyalty, it and it perspective. types sit premium we're good the the first our of where we're us capacity, to relates as efficiencies this with confidence. Delta the to good as And things half forecast, we first here about a have

as we additional we the especially through think half that about, note, mentioned more the that. relates cabin progress, Second it I how and through give year the talked in the I you the main to and on unfold evolves could context industry half relates as progress it provide it to upside will color constructed, And we'll year. back we've margins as as as that and

Catherine O'Brien

great. the the these of Glen, a And one XXXX? That's standout quarter you than of you one. In the how in of view allocation all in release, on capacity terms that course any fourth expecting. And in press improvement? then noted were stronger initially geographic over one magnitude Was trends came do quick inform the that entities your for there maybe geographically

Glen W. Hauenstein

transatlantic you ]. the was an People Well, iota strong. And performance the aren't I the today, [ as [ really is particularly finding as the it's outstanding origin. X.XX the tourist summer everybody EUR the that And -- only to business not in weather pretty generate would bookings, the close-in been Again, screaming ] as dollar in asked that, Europe, the vier You're in and [ off-peak. season is and in of incredibly winter usually, the most ] destination. is a actually point strong, able And knows, the crowded. and in was that has off-peak, is streets down many significant is the really, incredibly the we're in nice months [ peak the U.S. not transatlantic. to really up euro right travel the Europe what is returns driving again, Southern going but are [ ] say ], winter just off-peak. advanced

So a bad it's not time go. to

happening, a are of So but things our we're a I environment of on all confluence got think capitalizing to lot really of and favorable it. we've those

Operator

question is from from coming Brandon Oglenski Barclays. Your next

Brandon Oglenski

new partnerships, and Congrats going with like of news exciting know forward, investors on this taking announced the a Ed, elaborate monetize lot you plan for you to maybe the notice. today. results market at but can more you to guys and see some week. definitely week, the how CES this Sync announced you especially of I Nice SkyMiles

Ed Bastian

creating it's starting is longer-term of for of be have there it's value the part just as something than and our relationship think it. not monetization ever you mind, greater we'll and we to thanks, Delta. to a them was Well, an can experience The on to unfold membership unique new. that, our SkyMiles Brandon. impact, exclusive with Uber a is how the flying capture immediately us. and wanting continue as customers. But not monetization revenue to see is these but them much It's The more about even so of interesting. and amount opportunities and This We're we're that item that about valuable of journey. The all [ the to taking for an ] Uber as exciting platform out out big in step it. demonstrate It Delta more announcing my think week partnerships and of a good relationship in customers as were to loyalty Delta reason Uber well of start to impact was try due well, that, as giving I before is we in question every based course. the will for Uber growing It Eats

And to and going ]. going drive the is huge SkyMiles part offerings. a to it's enhancement product to YouTube our [ entertainment partnership in-flight more for be of more be sign-ups

point the goal journey, about not in but So we're of talk monetization what that's we'll here. doing the at some initial

Brandon Oglenski

underappreciate insight couple how much you levers on years. costs then, year low into us Definitely in appreciate network Ed. some can the some this of you're restoration Maybe single like And pulling the Dan, we last keeping were digits. of give that, CASM

Daniel Janki

Yes.

of adding online we're that be coming somewhat of growth on network. airports the that to with we out still to the you're really elements the are rate it higher saw and items into that experience. consistent the talked really going Investor seniority. it's getting down it, many and our -- of continued in and utilization about of the vast high-margin the capacity we about the incremental the Glen to what the consistent along as that of side, mainline growth and cost investments you adding. better regionals. the We to of those our think XX% people alluding driving that have and and Day, XXXX, investment made. Part is developments, they we'll -- inflationary those, so-called I premium the make But The rate -- run margin, know that coming in come then investments of will half in fleet, at structures, It's related customer fleet hub that the the full efficiency in in the in growth XXXX, to over the it assets we're and of and majority the going we're is core seats is capacity the that utilization capacity we from alluded seats low-cost, into the to is of seeing

assets. We be of our back expect flying to the regionals to full

contractors, we into that Ed We with our have Delta sitting and and inefficiency to associated the put we restore airline, so that growing run rate it. The that capability and us as put that operational the workforce, capability the capability that been has teams excellence and really get as team part of pushed experience. financials and and our that we're

a average you and an airline the year to count to head now We ] down us So this grow growth. X% basis ended on year, as up X%. the step year-over start we on X%, into [ X% was saw flat

So will normalize. and of John the Investor driving in that a XXXX, as XXXX. there volume And That start ] in improvement we But you to Delta, above to we in industry be talked start of They you're will well team and supply chain. to Day, that it does efficiency high leading that that they progress to are make make starting relates get to part in The gaining we've stable level through [ question Tech and much times at that see team then of historical about and progress. element And expect getting then that. [ have the how want the Turnaround activity. come -- be still were improvement the to levels. we is and ] at we Ops, experience think maintenance, whole maintenance experience.

these, across -- just network all there company. inefficiencies I So I'd across were the efficiencies say wouldn't say

opportunity into we broad-based We over And time. for move [ those and airports will then Day. this have efficiencies at with talked grow about also Investor -- our the ]

I that 'XX, big X the see the at term, won't what doorstep but can that that technology long quite and unlock excited think we're -- that dollars just next with the about over in to company. years of X that's do multi-multiyear can what for for big, we associated we're the

Operator

from next Cunningham Your from question Conor Melius Research. coming is

Conor Cunningham

moving year I solid really [ year. Going MAX nicely, parts benefited think start a the from lot you this last a the grounding XQ. ] for But calendar, of there's and from

comps particularly actually your So difficult. are

a So sequential what somewhat reporting strong though even the actual those here expect well. really shouldn't spring? core to into you're are too, if are than Just good, stronger understand like today, trying even as your results acceleration we

thoughts any [ Just here ].

Glen W. Hauenstein

very, sales X we're year. had see our record we experiencing say just I'd We've a day in usually January, as strong of of very sales. record beginning the we top the since don't demand post period sales our

across what that quarter April into in signs second a to And and to and It's set third very, entities. think very we But really, demand early too strong so a be this the first strong going year really is us. and see early maybe fourth quarters. are is can for the I call all

Conor Cunningham

But standpoint you that there's just could are the year? the domestic this there's some Widebodies Atlantic that mean there there's as look And the international [indiscernible] be and as then to an to of a like about of on again Can lot supply by, a international from story issues talk Helpful. better setup made I supply in you engine come even hard the an for side. market. supply think what well. idea better argument around the I think U.S. just

Glen W. Hauenstein

And really, returns. very, Paris, very and transatlantic transatlantic to We're June going a in out season year, in X.X negative competitive I'd Olympics travel. people quarter, are pass think shaping spring up year late I in booking. the up early robust big really the and terms of we next was excited in way I for for the firm in through the had that months summer the Yes. had are booking through plans August point again, capacity another for the the basis big and a the starting about their the which as We transatlantic. over points in also summer there coming last as up record And we all the that summer in expect But peak. see July us the we're very real

big I are as think we dynamic, in competitive at Delta summer, look transatlantic great a are but the to things performance you do in only knowing also have Paris. uniquely this we have So some that beneficial versus how last summer's we not

Operator

Your from Fitzgerald TD next coming question from is Cowen. Tom

Thomas Fitzgerald

and bit on age boomers X seeing Could elaborate business maybe you're leisure what segments you versus maybe well cohort, of so little millennials. as Gen as by a across customer to the and some

Glen W. Hauenstein

and services. for is great The cohort second new because as wanting of but out now, The passes a buy and on of of the to the I'm report we think, happy as Sure. generation. proud part continues also have generation is, know and wealthier, premium boomer more to Well, us to that people age being it's I'm our premium boomers that products the premium continue great the first driving newer -- we for results driving question. and threshold of share later are I generation myself, bigger the a which

are but tomorrow as we So the as on boomers it, excited generation. pass excited not for it next the today driving to only for

strong. fourth quarter. fourth question in the Unit very first revenues Demand trends the [ Those quarter, ]. out, spectrum, on into continuing leisure are is in that's very across our corporate XX% we across consumer quarter, And sales. So the strong. the the up pointed sales on then as corporate

strong very growth. continued So

traveler out. year, the corporate We corporate the every travel managers. survey's survey Our

year's was number exceed expected to spend. meet XX% or last the think I

So components January. all the a are demand that drop we robust driving see here in we sit as really

Thomas Fitzgerald

Glen. the seeing cost helpful, a And to really low lot of obviously, just That's core I'd seen, hear of love in of Atlanta and what pulling some Minneapolis. ultra-low-cost like significantly in your going We've places back and follow-up, as back hubs. you're out a then Southwest

in there. Congrats seeing bookings what just on quarter. curious and So the you're yields

Glen W. Hauenstein

capacity Boston the and significant resilient would that say really a I got Right. surprisingly season our that encouraged are but summer fact market, the level, on and start hub performing with a that in all hubs to industry the at for capacity elevated the But for seasonal into is low Well, off-peak. in it. in we by it's and going us spring we're would very an hub is in competitive information. not now, amount yield the it's we're Boston, I say traffic possible which dynamics we're Boston of well the right and as going of giving head very incredibly despite by exception

So I think like we're where we sitting.

Los origin and we Angeles today. helping the sit always Of there's but on. I going feel are not something really, about destination, really wildfires where course, good And Los in Angeles

Operator

is JPMorgan. question from from coming next Baker Your Jamie

Jamie Baker

inside Glen. Dan a not The At lifetime, professional we've be year given have seems fuel industry to could So input up costs, somewhere thought well. the might ]. recaptured higher recalibrate point okay my this on, as for [ too the one the past, higher been in like fuel now topic fuel probably for recapture. X is evolution the can higher it of to take But costs. quarters, is distant it

we When environment, most least though, we're in a was, today, of production markets. yield at kind strong don't about modest. precedent, in that Whereas I past know, think

of to being longer So mark XXX% do pretty that's that that, higher still Or of do we recapture the alters you make to and get a inside question. that already Does my With it strong, couple think calculus? quarters? recapture it harder yields fuel?

Glen W. Hauenstein

that to that's of its short. pressure believe under how belief a based the is the is industry And it's that intense results. half the responding. continue bottom the And I personal never industry to fact improve been on

have what to recapture. industry terms So recapture has you faster past. I fuel that to it focus than of on needs think fuel that in is The backdrop in the

Daniel Janki

overall. And not costs, I only they to costs capture margins very low levels mean and and improve nonfuel have but fuel margins fuel at are

backdrop in. sitting So backdrop industry the that Ed we're to that about regards I industrial talked improving in think that's

Jamie Baker

quick then a somewhat follow-up [ demand, question. booking of And that's in changes on business elongated is just have had talked Excellent. about some curve. There are your -- on have corporate. ] weak how flying they Post-COVID, some my competitors and travelers impact Delta

corporate to trends world be? to back revert to beginning the of to the that consistent we you're behavior it kind behavioral today continues is way used post-COVID rebound, those corporate that that Or seeing with As are live in?

Glen W. Hauenstein

different. I'd say it's but the margin, still on it's reverting,

booking And over On travel yes, past the and margin, Wednesday a year picked in or up. had in come picking the COVID is elongated the has have closing because recovery. so. Tuesday the Those curves up

would on it's to it's I where but margin pre-COVID. it was not So what say back coming was, it the towards more

Operator

Your next question ISI. is Pfennigwerth Evercore coming Duane from from

Duane Pfennigwerth

continue maybe theme. Just to that

some the trends, fourth and we was obviously quarter, There how some revenue surprise recovery, back Thanksgiving As was period into noise driven corporate really post-election holidays you but compressed the do you the some out, actually called hotels And peak the stimulated that corporate? mark what which by? between stronger would XXXX? play think in of excluding compression the seasonal of

Glen W. Hauenstein

those whether think helpful month. compresses put doesn't X when for it's the I But clearly, it months think you is the or much for I different, month December, late together, don't Thanksgiving that compress. of

similar and return date not -- think be Thanksgiving essentially see day, I December, results will year. November in is year, next the we'll and one most for Next November

post-election a election. feel and after felt for really strength I into they And think that we was earnings, seen right the a and less inflection it of the the us big when that definite goes more confident point. and before was confident after again, out [ ] did election. it could that election, election, little we big was night is, you XXX surprise haven't the could felt bit see days, for leading sales before, And you people the a that right uptick

Duane Pfennigwerth

[ inning has in for follow-up, there to investment what then are ], rebuild expect while. the for mode harvest would helpful. land And enter been that just entity? in we Glen. When That's a for of you In Delta a mode?

Glen W. Hauenstein

investment I down corridors ]. We've that in as we we place -- indicated in most got script, of to think LATAM in the we're feed our the need toning [ we're more wouldn't into definitely moving worked on other, in a out deep COVID, moving each into coming that say we've we're I position but harvest, of South mature and America. we're so

Operator

Shannon from Dougherty Bank. question Deutsche next is Your coming from

Shannon Doherty

Q product Maybe your cabin, actually higher With just that seat one premium [ same it the possible stays continuing for to premium and ], RASM offering? growing between revenue Glen mix just could the be outpace even enhanced here. as the main yields gap given overall growth you're

Glen W. Hauenstein

our will [ we assumes premium XXXX I Well, think to trajectory continue that that revenues on. for Right. keep we're growth ] the plan indicates or

as us industry cabin that accelerate the year given in for come that we surprise if the significantly through to capacity be upside down the has think fact I main at would pool. starts move the level

we're how main [ seeing trends would the So and XXXX upside we bring that's premium potential being continued in significantly. ] is cabin that improving in

Shannon Doherty

Could trips last to be follow-up take here, the a if this your later in shifts, quarters thoughts year? as RASM year? a calendar what are positive maybe possible Easter As with this my June year that X March travelers of both on and it some X little instead

Daniel Janki

Easter. and break Spring

Glen W. Hauenstein

Is hear. really the didn't that I question,

Julie Stewart

shift. Easter on Thoughts

Glen W. Hauenstein

shift. Easter Oh,

Julie Stewart

seeing ] more [ be Could travel? you

Glen W. Hauenstein

returns as but that But travel out longer we'll a how the year. for March for are [ press the [ that longer the that Usually, late but [ the that. months bad So general then for which the ]. PEP this the is see you play is a offsets the because airline. but period [indiscernible] is good ], out better say, season, the season Easter differently good peak not PEP you can ] compressed thing, plays

Operator

coming is Stanley. Morgan question next Your Shanker from from Ravi

Ravi Shanker

confident not little revisit in later XQ, But are this unusual the bit. Europe, that is can the from you that of strength I in you pulling topic this forward just of kind if elaborated a summer? on Glen,

Glen W. Hauenstein

about you confident. together, who's I'm very go The to This Why is travel, you at and driving in euro X.XX Who's restaurant if all think vast EUR bill. say, of happening? then baby thread these a ], go restaurant boomers premium that see your in boomers. difference York is [ confident. to Europe, very in you the am revenue, year you I the and -- another it's if a a New driving?

robust Europe. better. to is consumers figure I'm smart. in demand that to going very time People seeing quickly, things is so And peak that and are and we're travel great out sure are They be pretty the a off-peak, U.S. the even this to seeing these

Ravi Shanker

difference the adjust for quarter of algorithm lot do as through do about you momentum as RASM, in about the talk in is we of -- front pricing cabin? of time you Or to you between like kind the front [ that? the adjust that pricing flow main food a in to a how think cabin, real as of ] mid-cabin more the of see Maybe cabin follow-up, plan that think like and how kind main plane I well. do

Glen W. Hauenstein

Right.

to -- I of focus to think really reasons on XX years our that destiny. wanted one control or of the own we decided back was the things one we premium XX ago

we've continue to main growth So I out. this to to in been the disconnect get tried would despite main continue once cabin revenue that ourselves able fact duress. experience they the back. do, because will grow want we've tend able has expect that to this from of and And want to We optimize be premium be people go premium our products to cabin terms think fact to pricing that, they abilities. lot price to to under been not don't but We that a strategy. our of us I

going So we necessarily is our driving to yields. in sees to higher more put higher come loads, premium revenue premium as continue not from

Operator

of coming America. next Andrew question is Didora from Bank from Your

Andrew Didora

I or early, can know kind full the XQ, this maybe past the year? historically, guess, reasonable? showing it's year of capacity And any on high first out Glen, Do your single-digit to I you domestic think when to relatively you I could color X points. X but think this of comments that's trend to outlook. then anywhere look when I guess, throughout growth how obviously, in But come we X% X% in look high quarter, schedule

Glen W. Hauenstein

question context for been I've little in you the that to the because opportunities thank bit of looking for of Well, a capacity. growth of give the shape

we're and X.X% quarter, somewhere [ probably ]. going be between to X% First

], would completion have X.X% somewhere We'll and see X% plays right factor [ X.X% is, now. out. we what completion think between assume, how but loaded I I [ ] on depending

Second quarter, we looked not schedules have our yet. really

the growth would of to our year-over-year in, next optimizing trade reduction I April point point what us of weekend, bit April, into a that is July You'll be see believe and expect how in start Dan's a that you'll there, be we little continue our back growth have off-peak selling between utilization low and couple August and do to work try going we're to bring out and more that which revenues of points line. I of to the June, we will see this for the would to with unit better margins. off-peak back costs ensure get and part

Andrew Didora

Will color. the year? How thinking capacity great spoken could as this growth the the Atlantic is be trend about And think or through Clearly, we the about that the below? it just strong That's trends on how front, year? average then across your Atlantic. Just sticking system there. demand we've maybe in progress the above obviously, we should you've to, seen

Glen W. Hauenstein

I schedules tweaks largely, I for the and not we our in the But slightly some transatlantic, through and think availability pretty think edges around above place, may aircraft well availability. There move are the loaded. crew we're on be it's as average, significantly.

Operator

Your from coming Vernon next Bernstein. question from is David

David Vernon

for much your how of growth. to a growth understand way right a last of corporate taking help interesting Is us how yield? is how XX% in then of in So Glen, year maybe demand sort And trending a trying sense GDS's, year the just get participating Southwest share going back with back, obviously, now, much corporate to there American corporate perspective. you can for step that that's from of volume, more kind a pretty that was

Glen W. Hauenstein

highs So X-year we [ can is other every our we say people's don't at share. is comment record on share What ] month.

forward sales. And so mix we as was headed by our it in driven in see these share the past then yield. it the the the of was in of as driven and then relates year, the to end it primarily traffic. early trends, year year, traffic And no And towards both we the deterioration and by

traffic contributing positive So have positive now and number. that yields we to

David Vernon

ASM kind [ for the then the domestic the international really that through helpful. Can you growth us progress of as you that think ], help we Excellent. And and you about as year? understand shaped between was us balance

Glen W. Hauenstein

Yes.

on bit the higher think a being domestic the get significantly. system But rates and growth the through Pacific I lowest will latter when Atlantic of the Pacific, we with probably year, our of Latin we to international going just the year down the probably be move is to rates. below. with this the And continuing as ahead run slightly the just average part little slightly come and

Operator

Your from Syth coming from Savi next is Raymond question James.

Savanthi Syth

did have the a the level? of If $X XX deliveries assumption. kind guessing thinking and your I still what -- kind I'm if aircraft is 'XX, billion -- you of Curious might in $X versus on XX deliveries. CapEx CapEx is sorry, is around billion. you're expecting front of XX that a But in good CapEx still

Daniel Janki

billion $X expected. a less had We deliveries is for Yes. few in we level. a good than

here around right expect in XXXX. XX-ish We

Savanthi Syth

but side, can interest And any it. the year Dan, kind up should in how side, color about of provide of this kind that also if think for we maybe the you Got can non-OpEx I noninterest terms follow of on -- it side. on with

Daniel Janki

Yes.

-- you the go out, the real maybe flattish of you does slight all should probably January. from get we where improvement. where I be, as other It million finally $XXX lock will through be as through see That's think the in deleveraging. it just it month pension we We'll here have finalizing fall here And be it a under we well. to then a where will It -- flattish benefit. performed as that of pieces think benefit the question January.

We sold. that our were the than they year the up and through that and drove have progresses the always past moving some or equity improvement. benefited gains from earnings expected, from investments partners reoccurring we they'll whether that the as be from won't And this we year. We and with we better of pieces down, have that that some had

So be headwind. that a will

quarterly relates thereabouts. mark around it And there's million any of Julie $XXX team splits. can kind work dynamic as and plan to you it that with right I flattish, if So

Julie Stewart

Matthew, we'll now go final to analyst question. our

Operator

Certainly.

Your final coming question Sheila is from from Jefferies. Kahyaoglu

Sheila Kahyaoglu

could Great quarter, questions. have guys. comments, Maybe we fleet I elaborate, X just sticking on if the

the First on any and stepping AXXX the in of around how about Atlantic that up number deliveries strong if you How how retirements? and to you're seeing wondering just demand here thinking about this you're I'm XXX think year XXXX. again XXX retirements that you're signals changes seeing? do

Daniel Janki

retirement the bit. little a take I'll

XX we retirements, over the retired aircraft On in just XXXX.

about year associated good installed We tech that. progresses and that kind higher, and how that. little expect flow late material in closer to summer good finalizing in that John But into a back into We'll to and have really efficiency team, base allows and that's It they're team the and driving the with the thing. ops a having with fleet how back spring, XXXX. early XX, in XXXX for be of for associated thereabouts. that plan the be a bit settles fleet probably see to We'll this

deliveries of our relates mix plus, it to of those in XXXX as about -- widebodies about XX and XXXs As a when just will the be XX XXXs. XX,

Sheila Kahyaoglu

for if could maintenance XXXX do it on spend. How levels? as towards it works And normalized maybe, follow-up I think we Dan, just about ask a

Daniel Janki

quarter. improvement one in the But over move going more that going start year, year-over-year. see to it's you'll occur and invest it it's towards to step a normalization little to doesn't to I first levels. multiple that normalized see the think of years. then should bit We We in see year-over-year we're start down. an

Julie Stewart

portion the now Matthew, media of we'll move question. to the

Operator

CNBC. Instructions] Joseph first from Leslie Your [Operator Certainly. question is from coming

Leslie Josephs

take of expect and you Just delays to prepare areas incoming difficulty the and do of in mobile tariffs, flights. Can wanted in you're Angeles impact? level for the tariffs? just affected, narrowbodies? case any of potential else you exclusively do from given ability planes about around And that that And resources and material getting of the on the anything have Los the you're then kind or limited to doing second, to administration cancellations like city about ask that talk kind seeing just aren't that you

Glen W. Hauenstein

we or uptick basis seen by we sales On on not the period. monitor an Los geographic in in wholesale region, sales, wildfires, daily have decline cancellations, a a a this during Angeles reduction a decline sales in but and

I the us. as don't So much a see, can the soon how be ends, think, we'll period going we not. it's we put to wrapper probably quarter, think But thought cost as to significant I around hopefully that

Peter Carter

used it's have Peter aircraft in to impact receive Carter tariffs. is what which Trump the Leslie, say, tariffs, on to ways of delivery the we alternative do administration. We some, last of I'll mitigate

is know, Airbus portion aircraft Our a not is but that hope, we subject are of to produced and of of those substantial course, employ in as Americans. tariffs, the because U.S. thousands

Operator

Your Street Sider Wall next Journal. from coming from question is Alison

Alison Sider

Just curious indications have especially the in be are some or basic concerns cabin? current might among there main you in with environment, any fare or that higher consumers, fatigue inflation any seeing fares,

Glen W. Hauenstein

no. of an answer new economics relatively airline acceleration [ about see year, the robust tickets, the think there was the And you coming I for inflation while clearly reflected to record of the demand. see COVID, sales. Last ] if airline. is airline We that think tickets benign. was that We out

destroy think slightly value to driving is medium really and to So going anything not long the over but term. that higher fares, it's volumes we

Alison Sider

companies spaces? sustainability I'm anything in of Delta there's those kind share other seen rethinking And of you anything just either if just is pledges we've curious if reevaluating And DEI could commitments. and and industries of other there's

Peter Carter

No, not. Carter. Peter we are it's Again,

We And operations. they we being course, differentiator are our steadfast our key talent, DE&I been commitments our about critical the And business. is really because in of focus. Sustainability more our our is efficient and are that's think that actually in about is people. to

Tim Mapes

more in, call, please. if time get one for one Thanks, we have Ali. we could Matthew, one

Operator

is Schlangenstein from Bloomberg last question from coming Your Mary News.

Mary Schlangenstein

after for I everything that that the certain their [ people fires they lost demand expect put are period? to have over wondering impact themselves area do in wanted to are ] a be perhaps much go less out all who just back because of fires. the these a and if, inclined in have drop -- you LA largely time, to likely I'm

Glen W. Hauenstein

uptick think, from all as actually I over see unfortunately, it, to country. demand we rebuild go the after natural come disasters, an people insurance in adjustments in

from by we that, of a faced all We usually, basis. the this. impacts by beginning out say actually that until real, hurricanes, in and -- -- a flooding. is you Los long-term But you certainly thing disaster go hearts So face to a we it's and -- something Angeles phases, recovery projective, a in I'd terrible affected everybody airline faced are natural the our never followed

more we and the or Asheville, experience having rebuild example, homes you are to traffic their the in for If take did as Asheville people businesses. actually than in we to pre-flooding pre-pandemic go

but an think it's unfortunate impact I term long nothing So will occurrence, that us.

Tim Mapes

you call much. Matthew. should conclude That the very Thank today,

Operator

you, you. today's Thank That your concludes Thank participation. conference for everyone, call.

Delta Air Lines (DAL) 10 Jan 252024 Q4 Earnings call transcript