Core Insights - Delta Air Lines reported strong Q2 results, exceeding EPS expectations and announcing a dividend increase, positively impacting investor sentiment [1][2][4] Financial Performance - Delta's Q2 EPS was $2.10, surpassing expectations of $2.04 by nearly 3%, although it declined from $2.36 in the previous year [2] - Q2 operating revenue reached $16.64 billion, exceeding estimates by approximately 3% but slightly down from $16.65 billion a year ago [2] - The company achieved an operating margin of 12.6% during Q2 [12] Revenue Streams - Revenue from premium cabin sales increased by 5%, while loyalty program revenue surged by 8% [3] - Delta received $2 billion from its partnership with American Express, which serves as the exclusive credit card issuer for Delta SkyMiles [3] Dividend Announcement - Delta increased its quarterly dividend by over 25%, raising it from $0.15 to approximately $0.19 per share, with the first payment scheduled for August 21 [4] Guidance and Market Position - Delta reaffirmed its full-year guidance for fiscal 2025 EPS at $5.25-$6.25, above the Zacks Consensus of $5.11, and free cash flow expectations of $3-$4 billion [7] - Despite a 7% decline year-to-date, Delta's stock has increased by 95% over the last three years, outperforming American Airlines [8][9] Valuation Metrics - Delta's stock trades at a forward earnings multiple of 9.9X, significantly below the benchmark's 24.2X and the industry average of 13.9X [10] - The stock also trades at 0.5X forward sales, in line with the industry average, compared to the S&P 500's 5.4X [10]