Is Delta Air Lines Stock (DAL) a Buy ahead of Q2 Earnings?

Business Insider

07-07-2025

Delta Air Lines (DAL) is set to report its Q2 2025 earnings on July 10, with Wall Street expecting earnings of $2.06 per share on revenue of $16.18 billion. The stock has rallied nearly 36% over the past three months, driven in part by easing tariff worries and improved sentiment across the airline sector. Still, shares remain down about 15% year-to-date, as concerns about softening travel demand and broader economic uncertainty continue to weigh. Even so, analysts remain broadly optimistic about Delta heading into the results.
Don't Miss TipRanks' Half-Year Sale
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
On the weekend of June 28, Delta Air Lines experienced major flight disruptions at its busiest hub in Atlanta due to severe storms. The extreme weather—lightning, hail, and strong winds—halted airport operations and led to the temporary evacuation of the air traffic control tower. Nearly 100 planes were checked for hail damage, and over 90 incoming flights were diverted.
Despite the disruption, Delta's stock rose 2.31% on July 2 and another 1.46% on July 3, showing no adverse market reaction ahead of its earnings report.
Analysts Remain Bullish on DAL's Growth Prospects
Ahead of Delta Air Lines' Q2 report, Bank of America Securities' analyst Andrew Didora kept a Buy rating with a price target of $56 per share. He expects Delta to post results in line with expectations, with earnings per share around $2 and revenue near the midpoint of the company's guidance. He also raised his 2025 earnings estimate to $5.35, up from $5.20.
Similarly, TD Cowen analyst Thomas Fitzgerald reaffirmed a Buy rating and raised his price target from $50 to $55 on July 2.
Meanwhile, 5-star analyst Sheila Kahyaoglu at Jefferies raised her price target to $56 but kept a Hold rating. She lifted her Q2 EPS estimate to $2.10, citing steady demand and stronger last-minute summer bookings. However, she remains cautious on Q3, pointing to ongoing weakness in Main Cabin bookings, which account for roughly 40% of Delta's revenue. Kahyaoglu now expects Q3 EPS of $1.27, below the $1.46 consensus.
Is DAL Stock a Buy or Sell?
Analysts remain bullish about Delta Air Lines' stock trajectory. With seven Buy ratings and two Hold ratings, DAL stock commands a Strong Buy consensus rating on TipRanks. Also, the average DAL price target of $58.11 implies 14.25% upside potential from current levels.