Delta Soars 11% as Guidance Returns and Record Revenue Lifts Outlook
Summary
Delta Air Lines (DAL) stock surged over 11% after the company reinstated its full-year guidance, projecting EPS between $5.25 and $6.25 and free cash flow of $3 billion to $4 billion. This renewed confidence follows a record-setting June quarter with revenue of $15.51 billion and adjusted EPS of $2.10, both exceeding analyst estimates. The airline anticipates continued strong performance into Q3, driven by robust demand and improved cost management, signaling a positive outlook for the remainder of the year.
Delta Air Lines Soars on Reinstated Guidance and Record Revenue
Atlanta, GA – July 10, 2025 – Delta Air Lines (NASDAQ: DAL) experienced a significant surge in its stock price today, climbing over 11%, as the airline reinstated its full-year financial guidance. This move signals renewed confidence within the company, following a robust June quarter that saw record revenue figures.
Strong Financial Outlook Reaffirmed
Delta now projects full-year earnings per share (EPS) to be in the range of $5.25 to $6.25. Furthermore, the airline anticipates generating free cash flow (FCF) between $3 billion and $4 billion for the year. This positive outlook was a key driver behind the enthusiastic investor response.
Q2 Performance Exceeds Expectations
The airline's second-quarter performance underscored its strong operational execution and resilient passenger demand. Key highlights from the quarter include:
- Revenue: Delta reported total revenue of $15.51 billion, slightly surpassing analysts' consensus estimate of $15.45 billion. This figure also represents a modest year-over-year increase.
- Adjusted EPS: Adjusted earnings per share reached $2.10, narrowly beating Wall Street's expectation of $2.07.
These results were achieved despite broader macroeconomic headwinds, including concerns over tariff-related risks that could impact consumer sentiment.
Positive Momentum for Q3 and Beyond
Looking ahead, Delta Air Lines expects continued positive momentum into the third quarter. The company forecasts third-quarter revenue to be flat to 4% higher compared to the same period last year. Management also anticipates improved unit revenue trends and the strongest non-fuel cost performance of the year.
With steady demand and ongoing capacity adjustments, Delta appears well-positioned to maintain its profitability through the second half of its 100th anniversary year. The airline's ability to exceed expectations and provide optimistic guidance has clearly resonated with investors, reinforcing its strong market position.