Delta(DAL) CNBC·2024-11-20 11:31Core Viewpoint - Delta Air Lines anticipates revenue growth in 2025 due to a resilient economy and strong travel demand, with earnings expected to grow in the coming years [1][2] Revenue and Earnings Forecast - Delta forecasts mid-single digit percentage revenue growth for 2025 compared to 2024, aligning with analysts' expectations of approximately 6% growth [1][2] - The airline expects to grow adjusted earnings by 10% annually over the next three to five years [2] Capacity Expansion - Delta plans to expand its flying capacity by 3% to 4% in 2025 compared to 2024 [2] Market Position and Performance - Delta is recognized as the most profitable U.S. airline, benefiting from a strong partnership with American Express and high demand for premium seating [3] - Delta's shares have increased by 60% this year, while United Airlines' shares have risen by 128%, both outperforming the broader market [3] Revenue Composition - In 2023, only 43% of Delta's revenue comes from main cabin tickets, with 57% generated from premium seats and its loyalty program, a shift from 60% in 2010 [4] - The airline has successfully encouraged customers to pay for first-class seats, with over 70% of these seats now purchased rather than upgraded [5] Cabin Segmentation Strategy - Delta is exploring new ways to segment its cabin offerings, considering additional options for premium travelers [6] Future Considerations - Executives may face inquiries regarding future demand, cost control, and measures taken to prevent operational disruptions similar to the CrowdStrike outage experienced last July [7]