Delta\’s travel demand outlook fuels shares rally
Delta Air Lines Reinstates Full-Year Forecast, Shares Surge
Delta Air Lines Δ shared a stronger outlook, restoring its full-year earnings forecast after reporting a 12‑billion‑share profit for the quarter ending June 30.
Key Highlights
- Profit Growth – Q2 profit up 63% to $2.1B, revenue flat at $16.6B.
- Full-Year Guidance – 2025 EPS projected between $5.25 and $6.25 per share.
- Revised Forecast – Delta had withdrawn its April forecast amid weaker demand.
CEO Ed Bastian’s Commentary
On the analyst call, Bastian emphasized that travel demand had “stabilized”, the U.S. economy was “solid,” and Delta’s brand loyalty remained “stronger than ever.”
Bastian noted that consumer and corporate confidence was predicted to improve in the latter half of 2025, “creating the environment for travel demand to accelerate.”
Delta’s Revenue Strategy
Delta reported a 5% growth in premium seat revenues, offsetting weaker demand for lower‑priced tickets. Executives described off‑peak travel demand as “very weak,” prompting the airline to slash flights on less‑traveled days such as Tuesday and Wednesday.
Market Reaction
Delta shares soared 13.6% in afternoon trade, reflecting investors’ confidence in the airline’s rebound and revitalized forecast.
