Delta’s Upbeat Forecast Sends United, American, Southwest Shares Flying
US airline stocks rose after Delta Air Lines (DAL) released quarterly results that exceeded forecasts
Quick overview
- US airline stocks surged after Delta Air Lines reported quarterly results that surpassed expectations, boosting optimism in the industry.
- American Airlines and United Airlines saw stock increases of over 11%, while Alaska Air and Southwest Airlines also experienced significant gains.
- Delta's positive report highlighted stabilized bookings and growth in premium and loyalty program revenues despite a decline in main cabin fare revenue.
- Analysts are now closely monitoring upcoming financial results from other airlines to see if they can replicate Delta's rebound.
US airline stocks rose after Delta Air Lines (DAL) released quarterly results that exceeded forecasts, raising optimism for the battered industry that had been hardest hit by a decline in consumer sentiment due to tariff-related uncertainty.
American Airlines’ (AAL) and United Airlines’ (UAL) stock rose more than 11% in midmorning trading. Alaska Air’s (ALK) stock increased by over 8%, while Southwest Airlines’ (LUV) stock increased by 5%.
Most US airlines have withdrawn their 2025 financial projections in recent months due to consumer apprehension about the potential effects of President Trump’s tariff policies. Bookings, a crucial indicator for the airline industry, decreased as a result. Delta was able to turn that story around in its premarket report on Thursday by declaring that reservations had leveled off. Additionally, it reported that despite a decline in standard main cabin fare revenue, premium ticket revenue up 5% year over year, and loyalty program revenue up 8% year over year.
Delta CEO Ed Bastian stated, “As we look to the second half of our centennial year, we remain focused on executing our strategic priorities and managing the levers within our control.”. The business reported adjusted earnings per share (EPS) of $2.10 and adjusted revenue of $15.5 billion. The Street was expecting adjusted EPS of $2.07 and revenue of $15.54 billion.
United, American, Southwest, and Alaska Airlines will all release their financial results. Analysts will watch other airlines and reinstate their full-year projections, or if they can match Delta’s performance rebound.
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