Delta Air LinesThe first-quarter outlook beat analysts’ expectations on Friday as the airline forecast strong travel demand at the start of the year, which is likely to be the airline’s best ever, according to CEO Ed Bastian.

Delta expects to generate more than $4 billion in free cash this year, up 18% from 2024 and midway through its annual target of $3 billion to $5 billion. Full-year adjusted earnings are expected to be more than $7.35 per share.

“We’re starting the new year pretty well,” Bastian told CNBC. “Everywhere we see consumers continue to value experience over goods.”

This sets Delta up for “our best fiscal year in our history,” Bastian added.

Here’s how the company performed in the three months ended Dec. 31 compared to Wall Street expectations, based on LSEG consensus estimates:

• Earnings per share: $1.85 adjusted vs. $1.75 expected
• Revenue: $14.44 billion adjusted vs. $14.18 billion expected

Delta expects revenue to grow 7% to 9%, above the roughly 5% growth surveyed by LSEG. The airline expects first-quarter earnings per share of between 70 cents and $1, slightly above Wall Street forecasts of between 65 cents and 97 cents.

The Atlanta-based airline is the first major U.S. airline to report profit this quarter. Airlines have seen strong travel demand following the pandemic, which analysts say is likely to continue this year, with some deals for consumers in the pipeline.

Delta has said it is benefiting from a boom in premium travel as more customers pay for larger seats or rewards credit cards and demand for those products continues to rise.

Delta shares rose 9% in Friday trading. Airline stocks have risen in recent months. Shares of Delta’s main competitor, United Airlinesgained more than 140% over the past 12 months through Friday’s close. Delta shares are up nearly 59% in that period.

Deltas American Express The partnership brought in $2 billion in the fourth quarter, up 14% from the same period last year. Revenue from premium seats such as first class and premium economy rose 8% to $5.2 billion in the fourth quarter, compared with a 2% rise in main cabin ticket revenue to about $6 billion.

Unit revenue, a measure of how much revenue an airline generates for the number of flights it operates, rose 4% in the fourth quarter compared to 2023.

Delta’s profit fell 59% to $843 million in the final three months of the year compared with the same period in 2023, as expenses, including payroll, rose 7%, or $942 million . Sales rose 9% year over year to $15.6 billion.

Adjusted for one-time items, Delta posted fourth-quarter earnings per share of $1.85 on adjusted revenue of $14.44 billion, both above analysts’ estimates.

Correction: Delta expects first-quarter earnings per share between 70 cents and $1. In an earlier version the characters were depicted incorrectly.