Delta Air Lines Reports Q2 Earnings, Expects Demand to Accelerate in 2025

Delta Air Lines reported Q2 earnings of $2.10 per share, beating expectations. Passenger revenue surged 26% to $13.88 billion, and operating revenue reached $16.65 billion, above the consensus estimate. CEO Ed Bastian expects travel demand to accelerate in the second half of the year, citing economic stability and consumer confidence. The airline's stock surged 12% following the report, leading to a rally in the airline sector.

Delta Air Lines (DAL) reported robust second-quarter earnings, with adjusted earnings per share (EPS) of $2.10, exceeding the expected $2.07 and a year-ago EPS of $2.36 [2]. The company's adjusted revenue for the quarter was $15.5 billion, slightly below the estimated $15.54 billion but up 1% compared to the previous year [2]. This performance resulted in a 12% stock price surge, leading to a broader rally in the airline sector.

Passenger revenue surged 26% to $13.88 billion, while operating revenue reached $16.65 billion, above the consensus estimate of $16.62 billion [2]. Delta's CEO, Ed Bastian, attributed the strong performance to greater economic clarity and improving demand in the second half of the year. He noted that consumers and businesses are gaining confidence in discretionary travel spending.

Delta's total revenue per available seat mile (TRASM) was $0.1997, down 3% compared to the previous year. The company reinstated its full-year earnings per share outlook of $5.25 to $6.25, with free cash flow expected at $3 billion to $4 billion [2]. The stock's immediate price movement will depend on management's commentary on the earnings call, with the Zacks Rank currently indicating a #3 (Hold) for the stock [1].

Delta's encouraging report boosted the entire airline sector. United Airlines jumped 10.1%, American Airlines climbed 7.9%, and JetBlue rose 4.8% [2]. The market responded positively to Delta's reinstated guidance and optimistic projections, reflecting broader confidence in the airline industry's recovery and growth prospects.

Delta's stock has lost about 16.2% since the beginning of the year versus the S&P 500's gain of 6.5%. The company's earnings outlook and the industry's performance will be key factors in determining the stock's future performance [1]. As of the latest earnings report, Delta's stock is trading closer to the upper end of its 52-week range of $34.74 to $69.98 [4].

References:

[1] https://finance.yahoo.com/news/delta-air-lines-dal-beats-195002232.html

[2] https://www.ainvest.com/news/delta-air-lines-drives-airline-sector-rally-1-revenue-growth-2507/

[3] https://www.cnbc.com/2025/07/10/delta-air-lines-dal-2q-2025-earnings.html

[4] https://www.rttnews.com/3552474/delta-air-lines-stock-jumps-12-on-strong-q2-earnings.aspx