Upcoming Earnings Announcement

Delta Air Lines (NYSE: DAL) will release its first-quarter fiscal 2025 financial results before the market opens on Wednesday. The airline faces a climate of heightened economic uncertainty, contributing to a cautious outlook on air travel demand.

Analyst Sentiment and Stock Performance

Despite a generally bullish outlook from analysts, with nine “buy” ratings and one “hold” from those tracked by Visible Alpha, recent weeks have seen a significant decline in Delta’s stock. The average price target has dropped from $76.85 to $67.30, reflecting a more cautious approach among market watchers.

Delta’s stock has fallen dramatically, sinking 46% from its peak of $69.06 in early February, closing at $37.25 recently. This includes a nearly 11% drop attributed to a recent sell-off influenced by tariff concerns.

Financial Projections for Q1

For the March quarter, analysts expect Delta to report adjusted earnings per share (EPS) at $0.41, marking a decrease of four cents year-over-year. Revenue is anticipated to rise by 1%, reaching approximately $13.90 billion.

Broader Context of Economic Uncertainty

Last quarter, Delta exceeded earnings estimates, and CEO Ed Bastian had expressed optimism regarding ongoing consumer demand for travel. However, sentiment has shifted negatively in the current quarter, prompting adjustments in outlooks across the airline industry.

Bank of America analysts have noted, “There is no place to hide from softening demand trends, and we expect a 1Q25 earnings season characterized by weak 2Q25 outlooks and lower 2025 earnings guidance.” They predict Delta may lead the sector in reducing full-year profit forecasts, with its price target now adjusted to $56 from $65, echoing a similar trend among competitors like United Airlines and American Airlines.