Delta Air LinesThe outlook for the first quarter on Friday exceeded analysts’ expectations as the airline forecast strong travel demand for the start of the year, which Chief Executive Ed Bastian said could be the best ever for the airline.

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

“We feel really good going into the new year,” Bastian told CNBC. “Everywhere we see consumers continue to prioritize experiences over goods.”

Bastian added that this would lead to Delta’s “best fiscal year in our history.”

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

• Earnings per share: Adjusted $1.85, expected $1.75
• income: Adjusted $14.44 billion, expected $14.18 billion

Delta Air Lines said it expected revenue to rise 7% to 9%, above the roughly 5% growth forecast by analysts polled by LSEG. The airline expects first-quarter profit in the range of 70 cents to $1, slightly above Wall Street forecasts of 65 cents to 97 cents.

The Atlanta-based carrier is the first major U.S. airline to report a profit for the quarter. Airlines are enjoying strong post-pandemic travel demand that analysts say is likely to continue this year, with some discount All the way for consumers.

Delta Air Lines says it has been taking advantage of airline industry boom quality travel As more customers spend money on roomier seats or rewards credit cards.

Delta Air Lines shares rose more than 6% in premarket trading. Airline stock prices have risen in recent months. Delta Air Lines Holdings main competitors, United Airlinesup more than 130% in the past 12 months. Delta Air Lines’ stock price rose more than 45% during the same period.

Delta Air Lines American Express Partnerships generated $2 billion in revenue in the fourth quarter, up 14% from the same period last year. Revenue from premium seats such as first class and premium economy increased 8% in the fourth quarter to $5.2 billion, while main-cabin ticket revenue increased 2% to about $6 billion.

Unit revenue, a measure of how much an airline earns from flights, rose 4% from the fourth quarter of 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 wages rose 7%, or $942 million. Revenue increased 9% from a year earlier to $15.6 billion.

After adjusting for one-time items, Delta Air Lines’ fourth-quarter earnings per share were $1.85 and adjusted revenue was $14.44 billion, both higher than analysts’ expectations.