According to Koyfin data, the consensus revenue estimate for Delta Air Lines stands at $18.85 billion, and adjusted earnings per share are expected to be $1.50.
- Wall Street is largely bullish on the U.S. airline, with 25 of 26 analysts covering the stock rating it a ‘Buy’ or higher.
- Raymond James told investors this week that Delta remains viewed favorably due to its structural advantages, strong balance sheet, and balanced capital allocation, among other things.
- Goldman Sachs observed that Delta is still benefiting from sustained demand momentum seen at the start of the year.
Shares of Delta Air Lines (DAL) have drawn investor buzz as the firm prepares to report its second-quarter earnings, scheduled for Friday before the opening bell.
According to data from Koyfin, the consensus revenue estimate stands at $18.85 billion, implying more than 13% year-over-year growth, while adjusted earnings per share (EPS) are expected to be $1.50.
Wall Street is largely bullish on the U.S. airline, with 25 of 26 analysts covering the stock rating it a ‘Buy’ or higher, and one rating it a ‘Sell,’ according to Koyfin data. Retail sentiment on Stocktwits has also remained ‘Bullish’ over the last 24 hours.
Wall Street’s Take On DAL
Multiple analysts raised their price targets on DAL stock this week, with Bank of America and Susquehanna saying they expect “a constructive setup” for Q2 earnings in the airline sector, citing strong demand trends and significantly lower fuel prices.
Raymond James told investors this week that Delta remains viewed favorably due to its structural advantages, refocused third-party maintenance, repair, and overhaul business, strong balance sheet, and balanced capital allocation, according to TheFly.
Goldman Sachs observed that Delta is still benefiting from sustained demand momentum seen during the start of the year, despite significant fare increases beginning in March to offset higher fuel prices. In late June, Citi said it believes nearly every airline will beat Q2 estimates and provide third-quarter (Q3) guidance above consensus.
Airline Stocks Navigate Renewed Geopolitical Uncertainty
Following renewed tensions between the U.S. and Iran in the Strait of Hormuz, airline stocks fell on Wednesday. U.S. President Donald Trump told reporters he ordered fresh strikes on Iran after it targeted commercial vessels in the strait, dismantling the fragile ceasefire between the two nations and fueling near-term uncertainty about global oil supply.
Delta and United Airlines (UAL) closed down about 2%, while American Airlines (AAL) ended the previous day with a 4% decline.
Delta Launched Expanded Basic Fare Options
On Wednesday, the airline began offering lower fares for its premium offerings, namely Delta First, Delta Premium Select, and Delta One, by excluding certain perks. The company’s rationale for the move was to allow more customers to experience a stripped-down version of its high-end services.
“This expansion gives customers more ways to choose the Delta experience that best fits their trip and a new way to access our premium-tier products,” said Joe Esposito, executive vice president – chief commercial officer for Delta. “No matter the fare, every customer can expect the thoughtful service, comfort and care that continues to set Delta apart.”
DAL shares have gained more than 25% so far this year and more than 72% over the last 12 months.
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