Jim Cramer Discussed These 7 Stocks

3. Delta Air Lines, Inc. (NYSE:DAL)

Number of Hedge Fund Holders: 57

Delta Air Lines, Inc. (NYSE:DAL) is set to report its Q4 and full-year 2024 earnings on January 10. Mentioning the company, Cramer commented:

“Delta reports too. I think it’ll be stellar. The airlines are a changed breed. They’re no longer building up capacity to meet… demand. Instead, they’re doing their best to keep capacity tight and prevent a ruinous price war. It’s still the right time to own Delta because the air traffic remains robust and profits are flowing like never before.”

Delta (NYSE:DAL), a prominent provider of air transportation services, offers both passenger and cargo services across a wide network of domestic and international routes. During its Investor Day, the company projected strong sales growth for 2025, anticipating increased revenue driven by a strong economy and ongoing demand for premium and international travel. Delta President Glenn Hauenstein highlighted improvements in capacity management, noting that excess capacity observed in the summer months improved by August, helping to boost revenue as the airline entered the fall season.

Over the next three to five years, Delta (NYSE:DAL) is targeting mid-teens operating margins, 10% earnings per share growth, and free cash flow in the range of $3 billion to $5 billion. Looking ahead to 2025, the airline expects capacity growth of 3% to 4%, along with revenue growth in the mid-single digits and non-fuel unit cost growth in the low single digits.