Delta Air Lines, Inc. (NYSE:DAL) Analysts Adjust Price Targets Amid Industry Challenges
Summary
Analysts have lowered price targets for Delta Air Lines (DAL) due to a revised 2025 profit outlook and ongoing industry challenges like fluctuating fuel prices and changing travel demand. The consensus price target has decreased from $67.21 a year ago to $60 last month. Despite the cautious outlook, Delta's CEO notes stabilized demand, and the company's June quarter results met guidance, with September quarter EPS projected between $1.25 and $1.75.
Delta Air Lines (DAL) Price Targets Adjusted Amidst Industry Headwinds
Publication Date: July 10, 2025
Analysts have revised their price targets for Delta Air Lines, Inc. (NYSE:DAL), reflecting a more conservative outlook influenced by macroeconomic factors and ongoing industry challenges. This adjustment comes as the airline navigates fluctuating fuel prices, evolving travel demand, and a revised profit forecast.
Shifting Analyst Sentiment
Over the past year, the consensus price target for Delta's stock has steadily declined. The average price target, which stood at $67.21 a year ago, decreased to $63 last quarter and further to $60 last month. This downward trend signals a growing caution among analysts regarding Delta's future stock performance. Factors such as recent earnings reports and broader industry trends are key drivers behind this shift.
Revised Profit Outlook Impacts Views
A significant contributor to the adjusted price targets is Delta's revised 2025 profit outlook. The company now anticipates adjusted earnings per share (EPS) to be between $5.25 and $6.25, a notable reduction from its previous forecast of over $7.35 per share. Despite this downward revision, Delta's CEO has indicated a stabilization in demand, as reported by CNBC.
Industry Challenges and Performance
The airline industry continues to face headwinds, including volatile fuel prices and shifts in travel demand, which directly impact analysts' projections for Delta. Despite these challenges, Delta's financial results for the June quarter of 2025 aligned with earlier guidance, demonstrating robust performance across its diverse revenue streams. The company projects EPS for the September quarter to range from $1.25 to $1.75, with an operating margin of 9% to 11%, according to PR Newswire.
Macroeconomic Factors and Analyst Projections
Broader macroeconomic conditions, such as interest rates and consumer spending patterns, also play a crucial role in shaping Delta's stock price targets. For instance, UBS analyst Myles Walton has set a price target of $48 for Delta, reflecting a cautious stance in light of potential industry headwinds. As Delta prepares to release its second-quarter earnings, investors and analysts will closely monitor whether the airline can sustain its earnings momentum amidst these evolving market dynamics.