Earnings Preview: What to Expect From Delta Air Lines' Report

Core Viewpoint - Delta Air Lines, Inc. is expected to report a decline in earnings per share (EPS) for the fiscal fourth quarter of 2025, but analysts remain optimistic about its long-term growth potential and overall performance in the airline industry [2][3]. Financial Performance - Analysts anticipate Delta to report a profit of $1.58 per share on a diluted basis for Q4 2025, which represents a 14.6% decrease from $1.85 per share in the same quarter last year [2]. - For the full fiscal year 2025, EPS is expected to be $5.85, down 5% from $6.16 in fiscal 2024, but projected to rise 21.2% year over year to $7.09 in fiscal 2026 [3]. Stock Performance - Delta's stock has outperformed the S&P 500 Index, gaining 14.7% over the past 52 weeks compared to the index's 11.1% increase [4]. - The stock also surpassed the Industrial Select Sector SPDR Fund's 12.7% gains during the same period [4]. Demand and Revenue Drivers - The airline's strong performance is attributed to high demand in premium and corporate travel, effective cost management, and a robust loyalty program [5]. - Growth in premium revenue is supported by new aircraft and retrofits, while the SkyMiles program and partnership with American Express have driven double-digit revenue gains [5]. - Corporate travel volumes have exceeded pre-pandemic levels, contributing to strong fare growth and operational reliability [5]. Recent Earnings Report - On October 9, Delta shares rose over 4% following the release of Q3 results, with revenue of $16.7 billion exceeding consensus estimates by 3.8% [6]. - The company's EPS for Q3 was reported at $2.17, surpassing consensus estimates by 39.8% [6]. Analyst Ratings - The consensus opinion on Delta stock is bullish, with a "Strong Buy" rating from 20 out of 22 analysts, one suggesting a "Moderate Buy," and one giving a "Hold" [7]. - The average analyst price target for Delta is $75.44, indicating a potential upside of 8.2% from current levels [7].