TLDR
- Delta stock rose 11% to $49.61 after strong June quarter earnings
- Q2 adjusted EPS of $2.10 beat expectations of $2.05
- 2025 full-year EPS guidance reinstated at $5.25–$6.25
- Premium product and Amex revenue supported strong margins
- Travel demand stabilizing; strategic cuts to post-summer capacity
Delta Air Lines Inc. (NYSE: DAL) shares surged 11% to $49.61 on July 10 after the company reported strong Q2 2025 results and reinstated its full-year earnings outlook.
Delta now expects full-year adjusted earnings per share between $5.25 and $6.25, a downward revision from January’s forecast of over $7.35, but a significant confidence boost after April’s withdrawal of guidance due to weak bookings.
Q2 Results Beat Expectations
For the quarter ending June 30, Delta reported adjusted EPS of $2.10, beating the $2.05 consensus. Adjusted revenue totaled $15.5 billion, just above expectations and up 1% year-over-year. Net income rose to $2.13 billion, or $3.27 per share, up 63% from last year’s $2.01 per share.
✈️ Delta's flying high. Delta Air Lines ($DAL) just delivered strong earnings and upbeat guidance, sending its stock price soaring. 📈
With United $UAL, American $AAL, and Southwest $LUV reporting soon, the skies are heating up.
🧐 Which carrier's earnings will surprise next? pic.twitter.com/eDcXcEv8jO— StockCharts.com (@StockCharts) July 10, 2025
Delta also issued guidance for Q3 earnings of $1.25 to $1.75 per share, ahead of the $1.31 analyst forecast. The company expects flat to 4% revenue growth in the September quarter, highlighting signs of demand normalization.
Premium and Loyalty Drive Revenue
The airline posted strong results from high-margin segments, with premium product revenue up 5% and American Express partnership revenue rising 10% to $2 billion. Loyalty revenue grew 8%, aided by increased co-branded card spending.
International revenue expanded 2%, led by 11% growth in the Pacific region, supported by Transpacific network expansion. Corporate travel demand remained steady, though it missed the initial target of 5%–10% growth.
Operational Highlights and Strategic Expansion
Delta led U.S. carriers in on-time performance for Q2 and continued its network expansion. It took delivery of 10 aircraft during the quarter and retired another 10, modernizing its fleet. Key strategic moves included strengthening partnerships with WestJet and LATAM and expanding its transatlantic schedule.
Delta also announced nonstop flights from Salt Lake City to Seoul-Incheon and plans to launch new European routes from Seattle in 2026. The airline expects to resolve airport lounge overcrowding within 18–24 months, a key concern for premium travelers.
2025 Outlook and Dividend Increase
Delta restored full-year guidance, reflecting confidence in improving demand trends and operational performance. It announced a 25% increase to its quarterly dividend, beginning in Q3.
CEO Ed Bastian noted, “Bookings have stabilized. We’re seeing travelers hold off booking until closer to departure, but travel remains strong.” With a focused cost structure, high-margin revenue streams, and strategic network improvements, Delta appears positioned to navigate the evolving travel landscape.
