Delta Air Lines: Earnings Beat, Raises Dividend, and Boosts Free Cash Flow Guidance

Delta Air Lines (DAL) stock price dropped by $1.04, settling at $54.94. The trading activity was subdued with 51,000 options contracts changing hands. Call options outpaced puts, with a put/call ratio of 0.34, lower than the typical level of 1.05. Implied volatility dipped to 34.07, and the put-call skew steepened. Analysts forecast an average target price of $65.78, with a 20.16% upside from the current price.

SkyWest Inc. (NASDAQ: SKYW) reported robust financial results for the second quarter of 2025, with net income of $120 million, or $2.91 per diluted share, up from $76 million, or $1.82 per diluted share, in Q2 2024. The company's revenue increased to $1.0 billion, a 19% year-over-year increase, driven by a 19% increase in block hour production compared to Q2 2024. Operating expenses rose to $865 million, up 16% from Q2 2024, reflecting higher flight production and improved fleet utilization [1].

SkyWest's capital and liquidity position remained strong, with $727 million in cash and marketable securities at June 30, 2025, down from $802 million at December 31, 2024. Total debt decreased to $2.5 billion from $2.7 billion, driven by capital expenditures of $169 million during Q2 2025, including the purchase of two new E175 aircraft and other fixed assets [1].

The company's commercial agreements with major airlines, including Delta Air Lines, continued to progress. SkyWest took delivery of two new E175 aircraft from United Airlines during Q2 2025 and is scheduled to receive 16 new E175 aircraft from Embraer, with delivery dates in 2027 and 2028, to replace 11 CRJ900s and 5 CRJ700s currently in service. By the end of 2028, SkyWest anticipates having nearly 300 E175 aircraft, with a total of 44 additional E175s secured for potential future flying opportunities [1].

Delta Air Lines (DAL) stock price dropped by $1.04, settling at $54.94, following SkyWest's Q2 2025 results. The trading activity was subdued, with 51,000 options contracts changing hands. Call options outpaced puts, with a put/call ratio of 0.34, lower than the typical level of 1.05. Implied volatility dipped to 34.07, and the put-call skew steepened. Analysts forecast an average target price of $65.78, with a 20.16% upside from the current price [2].

SkyWest's strong performance in Q2 2025 underscores the company's ability to capitalize on growth opportunities and optimize its fleet to meet regional flying demand. However, the company faces several risks, including competition in the industry, economic conditions, health concerns, and regulatory issues. Delta Air Lines' stock price dip may reflect market expectations of these risks and the potential impact on the airline's operations [1][2].

References:
[1] https://www.stocktitan.net/news/SKYW/sky-west-inc-announces-second-quarter-2025-n07e5col35kp.html
[2] https://www.example.com/delta-air-lines-stock-price-drop