Delta shares jump 11% after airline reinstates 2025 profit outlook as CEO says bookings stabilized
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Delta cut its 2025 forecast after tariffs and hesitant consumers hit the brakes on trips this year.
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July 10, 2025
08:01 PM
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Delta Air Lines' third-quarter earnings and revenue forecasts topped estimates
CEO Ed Bastian told CNBC that bookings have stabilized after months of lower-than-expected demand
But Delta expects 2025 adjusted earnings of between $5. 25 a, down from a January forecast of more than $7
In this articleDAL your favorite stocksCREATE FREE ACCOUNTA Boeing 767-332(ER) from Delta Air Lines takes off from Barcelona El Prat Airport in Barcelona on Oct
Joan Valls | Nurphoto | Getty ImagesDelta Air Lines reinstated its 2025 fit outlook Thursday and said it expects a stronger summer travel season than Wall Street anticipated
Bookings have stabilized after a drop in demand earlier this year, CEO Ed Bastian said in an interview, though at lower levels than the airline forecast at the start of the 2025
S in other airlines, which report results later this month, also rose after Delta's report
Delta expects adjusted full-year earnings of $5. 25 a, down from a forecast in January of more than $7. 35 a, when Bastian predicted 2025 would be the carrier's best year ever
In April, Delta said it couldn't reaffirm that forecast as on-again, off-again tariffs and hesitant consumers dented bookings
Carriers also pulled their guidance, and Delta and other airlines have announced plans to cut flights after the summer peak
Bastian said the passage of the tax and spending bill and the Trump administration rolling out more trade deals with "less rhetoric and more action" are giving customers more clarity and confidence. "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. "That includes trimming capacity outside of top travel periods, as well as what Bastian described as "surgical" cuts after the peak summer travel season ends around mid-August
Here's how the company performed in the three months June 30, compared with what Wall Street was expecting, based on consensus estimates from LSEG:Earnings per : $2. 10 adjusted vs. 05 expectedRevenue: $15. 51 billion adjusted vs. 48 billion expectedDelta, the first of the U
Airlines to report results for the three months June 30, expects adjusted earnings per of between $1. 75 in the third quarter, compared with Wall Street analysts' forecast for $1
It also said it expects revenue that's flat to up 4%, topping forecasts for a 1. 4% sales increase
Delta posted strong growth from sales of higher-priced seats first class and from its lucrative American Express partnership, which increased 10% in the second quarter from the same period last year to $2 billion
Airlines have become more reliant on travelers who are willing to spend more to fly rather than more price-sensitive consumers
Read more CNBC airline newsAirport lounges, Europe and premium class are on the table, Southwest CEO saysTrump wants to bring manufacturing jobs back
The aviation industry can’t hire fast enoughWhy it’s getting even harder to get into airport loungesRecession in Row 33: Plane tickets are getting cheaper as domestic travel demand weakensCorporate travel has also stabilized as Bastian said es have more clarity and confidence than they did earlier this year, but it's in line with last year, not the 5% to 10% growth Delta expected at the start of the year
While fares have dropped across the U. , Delta's premium-duct revenue rose 5%, as sales from the main cabin fell 5% from last year
Its total revenue per seat mile, a measure of how much an airline is bringing in for the amount it flies, fell 4% in the second quarter
Bastian said Delta is prepared to continue updating its premium ducts. "Whether it's the Delta lounges or the quality of the duct on board, the premium ducts have had life cycles … and what we thought was state of the art six or seven years ago no longer is," he said. "We're continuing to upgrade and it. "Delta has been working for years to tamp down overcrowding and long lines at Delta's airport Sky s by building larger lounges and spaces dedicated to its top-tier Delta One cabin travelers, as well as with visit limits and other policies
Delta's president, Glen Hauenstein, said the airline expects to have "almost all" of the crowding blems resolved in the next 18 to 24 months, though he noted that one challenge is that bad weather thunderstorms that can spark hourslong delays. "You can't build a big enough for lengthy delays," he said on an earnings call with analysts. "So I think we're trying to look at alternatives that we can use as overflow in those instances. "Hauenstein reiterated that more customers are choosing to take European vacations after the traditional peak summer months to avoid heat waves, crowds and high hotel rates
In the second quarter, Delta posted adjusted revenue of nearly $15. 51 billion, up 1% from a year ago
Its net income in the three months June 30 totaled $2. 13 billion, or $3. 27 a, up 63% on the year
That compares with net income of $1. 3 billion, or $2. 01 a, in the same period last year
Adjusting for one-time items, its per- net income was $1. 37 billion, or $2
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