U.S. Airlines 2024 Year-End Review: Winners, Losers

As 2024 winds down, it’s time to reflect on a year that was anything but predictable for the U.S. airline industry.

From financial highs and operational lows to mergers and bankruptcies, the aviation sector showcased its resilience while grappling with challenges that tested even the most seasoned carriers.

Here’s my take on the year’s standout performers, those who stumbled, and what it all means for 2025.

Who Soared: Delta and United Airlines

When it comes to financial performance, Delta Air Lines and United Airlines were the clear leaders in 2024.

For the twelve months ending September 30, 2024, Delta reported a revenue of $60.306 billion, marking a 5.32% increase year-over-year. Delta's operating income for the same period was $5.601 billion, a slight decline of 1.16% compared to the previous year.

United Airlines reported a revenue of $55.99 billion for the twelve months ending September 30, 2024, reflecting a 4.24% increase over the previous year. The airline's net income for this period was $2.764 billion, a decrease of 3.39% year-over-year.

For Delta, the airline’s focus on premium offerings, like new Delta One lounges in major cities, helped it capture high-margin business travelers—a segment that rebounded strongly this year.

United Airlines took a different approach to growth, aggressive international expansion. In October, it announced eight new destinations, its largest international expansion in history.

Its strategy of targeting premium leisure travelers paid off handsomely, as did its investment in fleet upgrades featuring seat-back screens and free Starlink-powered WiFi. Investors rewarded United’s bold moves; its stock grew by more than 144% this year, making it the top-performing U.S. airline stock of 2024.

Who Struggled: American Airlines and Spirit

American Airlines had a rough year, marked by a failed direct-booking strategy that alienated travel agencies and led to a $149 million loss in Q3 alone. The fallout from this misstep forced a leadership shakeup and a return to traditional distribution channels.

While American Airlines is optimistic about year-end demand, it trails competitors like Delta and United in profitability and operational efficiency.

Spirit Airlines faced an even steeper decline. After a federal judge blocked its merger with JetBlue early in the year, Spirit struggled under rising costs and intense competition in the low-cost carrier market.

By November, Spirit Airlines filed for Chapter 11 bankruptcy protection—the first major U.S. airline to do so since American in 2011. Spirit plans to restructure and potentially reattempt a merger with Frontier Airlines, but its future remains uncertain.

Operational Standouts: Southwest and Alaska

Operational reliability was another key theme this year, with Southwest Airlines showing great improvement in on-time performance and minimal cancellations. Although Delta, Hawaiian, and United led this department, Southwest showed great progress.

After investing heavily in technology upgrades following its infamous 2022 holiday meltdown, Southwest demonstrated that lessons learned can lead to significant improvements. It also retained customer loyalty with perks like free checked bags and no change fees.

Alaska Airlines also had a strong year operationally despite starting 2024 with a high-profile incident involving a door panel blowing off one of its planes.

The airline rebounded quickly and completed its $2 billion acquisition of Hawaiian Airlines over the summer. This merger positions Alaska for global expansion, including new long-haul routes from Seattle to Europe and Asia.

Key Trends Shaping 2024

• Premium Travel Rebounds: Business travel made a strong comeback this year, benefiting carriers like Delta and United that invested in premium services.
• Capacity Constraints: Many airlines faced challenges balancing supply with demand due to aircraft delivery delays and staffing shortages.
• Sustainability Push: The industry continued its shift toward sustainable aviation fuels (SAF), although adoption remains slow due to high costs.
• Economic Headwinds: Rising fuel prices and inflationary pressures squeezed margins for budget carriers like Spirit and Frontier.

Looking Ahead to 2025

As we head into 2025, several questions loom large for the U.S. airline industry:

• Will American Airlines regain its footing after a turbulent year?
• Can Spirit successfully restructure and remain competitive in the crowded low-cost market?
• How will airlines navigate ongoing capacity challenges while meeting growing passenger demand?

Delta and United appear well-positioned to maintain their leadership roles next year, while Southwest’s operational reliability could make it a dark horse contender for further growth.

Meanwhile, carriers like Alaska are set to capitalize on expanded networks post-merger.

If 2024 taught us anything, it’s that adaptability is key in an industry as dynamic as aviation.

The winners next year will likely be those who can innovate while staying grounded—both literally and figuratively—in what passengers value most: reliability, affordability, and exceptional service.