Delta Air Lines reported adjusted fourth-quarter earnings per share of $1.14, surpassing analyst estimates by $0.06. Total revenue reached $13.5 billion, topping consensus expectations of $13.1 billion. The carrier’s operating margin expanded to 14.2%, up from 12.8% in the year-ago quarter, reflecting efficient capacity management and disciplined unit cost control.

International passenger revenue increased 10% year-over-year, driven by robust bookings on transatlantic and Asia-Pacific routes. Premium cabin revenue per available seat mile climbed 12%, supported by a 15% rise in premium cabin seat miles. Delta execs cited strong corporate travel demand and higher load factors on key long-haul sectors as primary contributors to the upside.

Despite the top-line beat, Delta’s quarterly unit cost excluding fuel rose 6% versus the year-ago period, largely due to higher labor expenses and ongoing investments in ground operations. Full-year labor costs are projected to climb by roughly $1.4 billion. With the stock trading at approximately 10.5 times forward earnings, some investors question whether current valuation adequately reflects these inflationary pressures and near-term margin headwinds.