Delta Stock Soars Following Q1 Results That Exceed Expectations Amidst Stalled Growth

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Delta Air Lines (DAL) experienced a notable increase in its share price, rising 7% on Wednesday morning following the release of its fiscal first-quarter financial results, which surpassed analysts’ expectations.

The airline disclosed adjusted earnings per share (EPS) of $0.46, supported by operating revenue of $14.04 billion. This performance exceeds the predictions made by analysts at Visible Alpha, who had estimated EPS at $0.39 and revenue at $13.89 billion.

Delta reported a passenger revenue per available seat mile (PRASM) of 16.78 cents and a cost per available seat mile (CASM) of 19.69 cents. These figures reflect a surprising profit margin since analysts had anticipated a loss of about 2.8 cents per ASM related to passenger transport. Notably, Delta and its domestic competitors, including United Airlines (UAL), American Airlines (AAL), and Southwest Airlines (LUV), reported profitability yet encountered losses when it came to passenger services in 2024.

Looking ahead, Delta has forecasted its second-quarter revenue to fluctuate within a 2% range, forecasting adjusted EPS to fall between $1.70 and $2.30. This estimate is lower than the $2.41 consensus projection. The airline has opted not to provide updates for its full-year forecasts amid prevailing uncertainties.

CEO Announced Reduction in Planned Capacity Growth for the Second Half

“The current global economic climate and uncertainty about trade have significantly impeded growth,” stated CEO Ed Bastian. “To safeguard our margins and cash flow, we will concentrate on controllable factors, which includes adjusting our planned capacity growth for the latter half of the year to align with last year’s levels, while we continue to manage our expenses and capital investments proactively.”

Analysts have expressed concerns that newly imposed tariffs by the Trump administration could potentially trigger a recession in the U.S. economy, negatively impacting major airlines. UBS analysts indicated that airlines might suspend their full-year forecasts due to this uncertainty, while Bank of America analysts predict a conservative approach in airlines’ second-quarter and full-year outlooks.

Prior to the recent uptick, Delta shares were down nearly 50% from their peak close of $69.06 recorded in early February.

UPDATE—This article has been updated with the latest share price information.

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