Yahoo! Finance
Mary Schlangenstein
20 November 2024
Delta Air Lines Inc. will expand its premium travel offerings in a nod to what it sees as upscale tastes of millennial customers, helping the carrier counter persistently high costs.
Operating profit margin should reach a mid-teens percentage between 2027 and 2029, above Wall Street expectations and the roughly 11% the carrier expects this year, Delta said in a statement outlining long-term financial targets on Wednesday.
Still, near-term challenges remain, including higher-than-expected expenses. Delta expects revenue in 2025 to grow in the mid-single digits, compared with analysts’ expectations for about 6.1%. Non-fuel costs to fly each seat a mile, an industry gauge of efficiency, will increase in the low-single digits, while analysts were expecting a 1.3% decline, according to estimates compiled by Bloomberg.
Read on: Delta Leans Into Upscale Travel While Battling Heavy Costs
