Delta Airlines shares surged 13% on Thursday after the company announced Q2 results, which beat the market’s expectations. The company also give a profit outlook for the year after suspending it earlier due to tariff-related uncertainties.
Q2 results
Delta Airlines reported an adjusted earnings per share of $2.10 against $2.05 which was expected by the market.
Its revenue was at $15.51 billion against the expectation of 15.48 billion.
The company’s profit jumped 63% from the previous year to $2.13 billion, although on an adjusted basis, the numbers were down 10% year on year.
The airline gave an earnings per share forecast of between $1.25 and $1.75 for the third quarter. This was above the analyst’s expectation of $1.31.
Airlines have struggled in 2025 due to travel uncertainties caused by tariffs and inflation.
The Nasdaq US Benchmark Airlines index has fallen 7% in the year so far compared to the S&P 500’s 6% gain.
Delta Airlines is the first US airline to announce results and its commentary has given a boost to other airlines as the Airlines index has surged by 10% on Thursday.
Demand bounceback
CEO Ed Bastian said in an interview that bookings have stabilized after the airline faced low demand for many months.
“People are still traveling,” Bastian said. “What they’ve done is they’ve shifted their booking patterns a little bit. They’re holding off making plans until they’re a little closer in to their travel dates. And so that’s shifted some of our bookings and yield management strategies.”
Back in April, Delta had withdrawn its earnings forecast for the year, saying it was difficult to give a full-year forecast due to uncertainties caused by tariffs and inflation.
Other airlines also pulled the guidance. Many companies, including Delta, said they were going to cut flights after the summer peak in mid-August.
Bastian remarked that the world is in a different place compared to the last 3 months, with progress in US trade deals with other countries and some of the global conflicts slowing down.
Despite this, the full year outlook for the company is down compared to the previous prediction.
Delta now expects an earnings per share of $5.25 to $6.25 for the year, against its previous prediction of $7.35 made in January.
Premium flyers power the airline
Delta said sales of premium tickets rose by 5% in the second quarter, while main cabin ticket sales declined by 5%, reflecting a split in consumer spending behavior.
The gap has widened as some travelers, facing inflation and economic uncertainty, scaled back their summer travel plans.
Delta also saw its first class and seats from the American Express partnership grow by 10% from the previous year to $2 billion.
Airlines have become increasingly reliant on premium customers who are willing to fly more, against the price-sensitive customers who will feel the pinch of economic slowdown.
The post Delta Airlines stock surge 13% after Q2 beat expectations, reinstates outlook appeared first on Invezz
