Carrier reports higherthanexpected Q4 profit, forecasts strong Q1 earnings
Premium travel demand boosts revenue growth
Reduced airline seats drive up ticket prices, benefiting Delta39;s earnings
Shares up 8 in early trading

CHICAGO, Jan 10 Reuters Delta Air Lines forecast 2025 profit above Wall Street expectations on Friday, thanks to robust demand for premium travel and the industry39;s improved pricing power, sending its shares up 8 in early trading.

Demand for highend travel has been booming since the pandemic, with travelers more willing to pay extra dollars for more comfortable and swanky seats. Delta, which has positioned itself as the nation39;s premium airline, has been one of the biggest beneficiaries.

As we move into 2025, we expect strong demand for travel to continue, with consumers increasingly seeking the premium products and experiences that Delta provides, CEO Ed Bastian said.

A sharp reduction in airline seats in the domestic market, which plagued carriers last summer, has driven up ticket prices and bolstered the industry39;s earnings outlook.

The trend helped Delta post higher unit revenue, a proxy for pricing power, in the December quarter, despite a slowdown in travel spending around the time of the U.S. presidential election in November.

Bumper expectations from the Atlantabased carrier led to shares of rivals United Airlines and American Airlines rising 3.4 and 2.2, respectively.

Delta said it expects earnings in excess of 7.35 a share…