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Delta Stock Surges as Q1 Results Top Estimates Despite 'Largely Stalled' Growth
Delta Air Lines ( DAL ) shares rose 7% Wednesday morning after the carrier's fiscal first-quarter results came in better than analysts had expected.
Delta reported adjusted earnings per share (EPS) of $0.46 on operating revenue of $14.04 billion. Analysts polled by Visible Alpha had forecast $0.39 and $13.89 billion, respectively.
The airline reported passenger revenue per available seat mile (PRASM) of 16.78 cents and cost per available seat mile (CASM) of 19.69 cents; analysts had expected Delta to lose about 2.8 cents per ASM transporting passengers. Delta and domestic rivals United Airlines ( UAL ), American Airlines ( AAL ), and Southwest Airlines ( LUV ) all were profitable but lost money flying passengers in 2024.
Delta said it expects second-quarter revenue to rise or decline by 2% and adjusted EPS from $1.70 to $2.30, below the $2.41 consensus. The airline said it is not affirming or updating full-year projections at this time "given current uncertainty."
CEO Says Delta Cutting Planned Capacity Growth in Second Half
"With broad economic uncertainty around global trade, growth has largely stalled," CEO Ed Bastian said. "In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control. This includes reducing planned capacity growth in the second half of the year to flat over last year while actively managing costs and capital expenditures."
Analysts have said that the Trump administration's new tariffs could push the U.S. economy into a recession , which would be a big hit to major airlines. UBS analysts on Monday wrote that they expected airlines to suspend their full-year outlooks amid tariff uncertainty, while Bank of America analysts said they think airlines will be conservative in their second quarter and full-year projections.
Delta shares had entered Wednesday down nearly 50% from a record-high close of $69.06 in early February.
UPDATE—This article has been updated with the latest share price information.
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