Delta Air Lines Inc (NYSE:DAL) has signalled appetite for luxury travel among millennials will fuel operating profit margins in the years ahead.
“The premium consumer is thriving,” the carrier said in an investor presentation on Wednesday, noting two-thirds of millennials were willing to splash out on luxury travel.
Operating profit margins should reach mid-teens percentages between 2027 and 2029 as a result, Delta unveiled in new guidance, against the 11% expected this year.
Free cash flow of up to $5 billion was also being targeted in the coming three to five years, Delta said, against the $3 billion anticipated in 2024, alongside a 10% growth in per-share earnings.
For 2025, expectations were laid out for capacity growth of 3% to 4%, as sales were expected to increase on the back of a “resilient economy” for strong travel demand.
Growing demand for luxury seats on flights would come as 57% of the airline’s revenues have been generated through premium sales this year, against 43% from main cabin tickets, which had accounted for 60% in 2010.