Delta Air Lines Stock Soars as Q1 Earnings Exceed Expectations Amid Sluggish Growth

Delta Air Lines (DAL) experienced a 7% jump in share price on Wednesday morning, driven by fiscal first-quarter results that surpassed analyst forecasts.

The airline reported adjusted earnings per share (EPS) of $0.46 on operating revenue totaling $14.04 billion, outperforming analyst estimates of $0.39 EPS and $13.89 billion revenue, according to Visible Alpha.

Delta posted a passenger revenue per available seat mile (PRASM) of 16.78 cents and a cost per available seat mile (CASM) of 19.69 cents. Analysts had anticipated a loss of approximately 2.8 cents per ASM for passenger transport. While Delta and its domestic competitors—United Airlines (UAL), American Airlines (AAL), and Southwest Airlines (LUV)—remained profitable, they faced passenger-related losses in 2024.

Looking ahead, Delta projects second-quarter revenue to fluctuate within a 2% range and adjusted EPS between $1.70 and $2.30, slightly below the consensus estimate of $2.41. The company has chosen not to update its full-year guidance amid ongoing economic uncertainties.

CEO Highlights Reduced Capacity Growth Amid Economic Headwinds

CEO Ed Bastian emphasized the impact of global trade uncertainties, stating, "With broad economic uncertainty around global trade, growth has largely stalled. In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control. This includes reducing planned capacity growth in the second half of the year to flat compared to last year while actively managing costs and capital expenditures."

Industry analysts note that recent tariff policies could potentially push the U.S. economy toward recession, posing significant risks to major airlines. UBS analysts forecasted airlines might suspend full-year outlooks due to tariff-related uncertainties, while Bank of America analysts expect conservative second-quarter and annual projections.

Before Wednesday's rally, Delta shares had declined nearly 50% from their record high close of $69.06 in early February.

Update: This report includes the latest stock price information.

Discover the latest news and current events in Company News as of 08-02-2025. The article titled " Delta Air Lines Stock Soars as Q1 Earnings Exceed Expectations Amid Sluggish Growth " provides you with the most relevant and reliable information in the Company News field. Each news piece is thoroughly analyzed to deliver valuable insights to our readers.

The information in " Delta Air Lines Stock Soars as Q1 Earnings Exceed Expectations Amid Sluggish Growth " helps you make better-informed decisions within the Company News category. Our news articles are continuously updated and adhere to journalistic standards.