Delta’s “Thriving” Premium Consumer Driving Airline’s Financial Goals | Global News Avenue

Delta Air Lines (Dar) said on Wednesday that it expects its high-end products to have huge room for growth in the coming years due to the “booming development” of high-end consumers.

Delta Air Lines said in its investor day presentation high income familiesAccounting for 75% of all air travel spending, its “household wealth” increased by about 40% compared with 2019. delta Citing a recent survey, leisure travel is the “top priority purchase” over the next four months for households with annual incomes over $100,000.

Delta Air Lines said it has seen growing demand for travel across generations, Millennials (generally born between 1981 and 1996) and Generation Z (Typically born between 1997 and 2012) The fastest-growing customer group for airlines. Millennials are largely willing to spend on “luxury travel,” and air travel spending is growing faster than spending by all generations overall, the company said.

Delta Air Lines predicts travel demand will drive growth

The airline expects travel demand to drive its growth in the coming years. Delta Air Lines confirms its prospect It also said it expects revenue to grow by mid-single digits in 2025 compared with 2024. Seat capacity is expected to expand from 3% to 4%, and Non-fuel costs are expected to rise by low single digits.

Delta Air Lines said it expects to Earnings per share (EPS) It is growing at an average of 10% per year due to plans to try new premium products and improve profit margins. Delta Air Lines says it expects premium revenue to become a larger revenue source by 2027 Ticket revenue As the company continues its shift toward higher-end products, its tickets have become cheaper than economy-class fares.

Delta Air Lines shares fell 2% today, but have gained nearly 60% since the beginning of the year.