✈️ Delta Air Lines shares appreciate more than 10% after earnings announcement!
Delta $DAL was the first U.S. airline to release second quarter results, and it appears to have beaten expectations both in terms of numbers and sentiment. Indeed, after several months of weaker demand, booking trends are starting to stabilise. And the market has reacted very positively to this.

📊 Key Results (Q2 2025):
Adjusted earnings per share: $2.10 (vs. $2.05 expected)

Revenue: $15.51 billion (vs. $15.48 billion expected)

Net Profit: $2.13 billion (+63% y/y growth)

Delta was able to generate very respectable results despite facing lower passenger numbers and lower corporate booking growth early in the year. The ability to refocus on premium passengers who are willing to pay extra for comfort played a significant role.

🧮 Outlook for the full year 2025:
Delta now expects adjusted earnings of $5.25-6.25 per share. Although this is down from January's forecast ($7.35), CEO Ed Bastian remains cautiously optimistic. He notes that while passengers are still flying, they have changed their behavior: They are putting off last-minute bookings, which is putting pressure on revenue management and capacity planning.

💺 Premium segment as a growth engine:
Delta successfully leverages first class, business class and the American Express card, which generated $2 billion in Q2 (+10% y/y). Premium products drove revenue growth despite economy class weakening YoY by 5 %.

Meanwhile, the company continues to upgrade its lounge and onboard products. New investments target Delta One (highest class of travel) and to eliminate overcrowding in airport lounge areas.

☁️ Risks and external factors:
U.S. ticket prices are down slightly, but premium seat revenues remain strong.

Weather-related challenges (storms, delays) persist, complicating operations and putting pressure on service quality.

The company has rightly bet on premium products, segmentation and more flexible capacity management. On the other hand, the outlook for the full year has been lowered, showing that Delta believes in more realistic expectations.

What do you think of Delta Air Lines, which kicked off our earnings season?