Delta Soars into 2024: A Surge in Business Travel Boosts the Skies!

Delta Air Lines’ business demand and sales rose in the fourth quarter, and the airline expects this trend to persist into the first quarter of 2025.

“Corporate sales increased by 10% year-over-year, progressing three points sequentially,” stated Delta president Glen Hauenstein during the airline’s Q4 earnings presentation on January 10. “Strengthened throughout the quarter, driven by both volume and fares, with widespread strength both geographically and across all sectors. … These trends are continuing into the first quarter.”

Hauenstein highlighted the company’s transatlantic division as showcasing an “exceptional performance.” He noted that throughout the off-peak winter season, advanced and last-minute bookings have remained robust.

Delta frequently surveys corporate travel managers in the weeks prior to its quarterly announcements, and Hauenstein mentioned that in the latest survey conducted by the airline, “90% anticipated they would either exceed or match last year’s spending.”

In reply to an analyst inquiry, Hauenstein remarked that the corporate market is “returning [to its former state], but it still has its differences. In marginal terms, close-in bookings have surged, as the booking timelines had extended during the Covid recovery. Those timelines have shortened in the past year or so. Travel on Tuesdays and Wednesdays is increasing. It hasn’t entirely returned to pre-Covid levels, but it’s moving closer to what it was before.”

According to Hauenstein, Delta’s portion of corporate volume is also “at or close to record highs every month.” 

Delta declared fourth-quarter revenue of nearly $15.6 billion, up 9% from the previous year, with $12.8 billion in passenger revenue, reflecting a 5% increase. The total annual revenue surpasses $61.6 billion, marking a 6% rise from 2023, while total annual passenger revenue reached almost $50.9 billion, a 4% growth.

The net income for the fourth quarter was $843 million, with a full-year net income of approximately $3.5 billion.

Source: Business Travel News