Delta Air Lines (DAL) announced on Thursday, July 10, 2025, that it has reinstated its full-year profit outlook, projecting an adjusted profit of $5.25 to $6.25 per share. This move comes after the airline had pulled its financial forecast three months prior due to economic uncertainties. The renewed confidence in consumer demand and an adjusted profit of $2.10 per share for the second quarter (surpassing analyst estimates of $2.06) sent Delta's shares up approximately 12-13%, reaching their highest level in over three months.
The airline also forecast adjusted earnings for the quarter ending September between $1.25 and $1.75 per share, aligning with analyst expectations. Delta's stock rally positively impacted other airline shares, with United Airlines and American Airlines seeing gains of around 15% and 13% respectively, Southwest Airlines up about 8%, and Alaska Airlines gaining 10%. Despite a year-over-year flatness in passenger revenue, Delta highlighted stabilized bookings, though they remain below initial estimates from the start of the year.
CEO Ed Bastian expressed optimism, citing robust demand for premium services and a double-digit increase in consumer spending on co-branded credit cards. He also noted the industry's plans to reduce the supply of price-sensitive seats to mitigate discounting pressures. However, some analysts and consumer surveys indicate a more uncertain outlook, with a Bank of America survey showing fewer consumers planning to spend more on travel, and corporate bookings remaining down since the start of the year. Nevertheless, Delta's reinstated guidance has set a high bar for its peers, suggesting a potential trend for other carriers to follow suit in restoring their outlooks.
Delta's second-quarter net income was $2.13 billion, or $3.27 per share, an increase from $1.31 billion, or $2.01 per share, in the same period last year. Adjusted revenue reached $15.51 billion, exceeding the analyst estimate of $15.46 billion. Passenger revenue was $13.87 billion, a slight increase from $13.84 billion in the prior year's second quarter, while cargo revenue rose 7% to $212 million. The company also reiterated its stance against paying tariffs on aircraft deliveries, with 40 new aircraft expected this year, and urged policymakers to follow the UK-U.S. trade deal template for tariff removal.
