Delta Air Lines today
Delta Air Lines
As of 09:58 ET
- 52 week range
- $36.34
▼
$68.99
- Dividend yield
- 0.92%
- P/E ratio
- 9.03
- Target price
- $78.22
Delta Air Lines New York Stock Exchange: DAL could soar to new heights in 2025 as the company continues to grow, cash flow improves, the balance sheet strengthens, and capital returns rise. The takeaway from the fourth-quarter report is that the business remains strong on all fronts, costs are controlled and results beat expectations, including beating forecasts.
The 2025 outlook assumes continued high single-digit revenue growth and may be cautious due to dynamics in the travel industry. Business and consumer trends are positive, and there is potential for economic tailwinds to develop. Although the prospects for a Fed rate cut are worsening, the reason lies in government policy; Trump’s policies are expected to stimulate demand at all levels of the system.
Delta Air Lines: Record Results and Industry-Leading Performance Drive Value
Delta Air Lines had a strong fourth quarter, delivering record quarterly results, closing a record deal in a record year and delivering industry-leading performance. Total revenue was $15.56 billion, up nearly 9.5% from last year and 750 basis points ahead of analyst consensus estimates reported by MarketBeat. Revenue performance was driven by strong leisure and corporate markets, led by premium and loyalty program spend, which accounted for 57% of revenue for the full year. Freight traffic is also strong, growing by over 30%, with demand across all segments expected to remain strong in F2025.
The quality of earnings is also good. The company increased total revenue per available seat mile by 40 basis points, resulting in GAAP operating margins of 11% and adjusted 12%. Key takeaways include record quarterly pretax earnings (up approximately 30%), operating cash flow of $1.8 billion and annual free cash flow of $3.4 billion. Ultimately, revenue leverage and cost controls resulted in adjusted earnings of $1.85, up $0.11 or 600 bps. better than analysts’ forecast and 45% more than last year.
Another factor explaining why Delta Air Lines will reach new highs in 2025 is forecasts. The company forecast first-quarter revenue growth of 7% to 9%, above consensus, with an EPS midpoint of $0.85 versus analysts’ forecast of $0.77. For the full year, Delta expects EPS growth to exceed 10% versus consensus of 10%, free cash flow at the high end of forecasts, debt reduction and year-end leverage of less than 2x.
Delta’s Balance Sheet and Return on Equity Outlook Drive Share Price Growth
Delta Air Lines stock forecast for today
$78.22
Growth potential 21.08%Buy
Based on ratings from 14 analysts
| High forecast | $90.00 |
|---|---|
| Average forecast | $78.22 |
| Low forecast | $60.00 |
Delta Air Lines Inventory Forecast Details
Delta’s balance sheet and return on equity forecast are critical to predicting stock prices. Fourth quarter results included another $1.5 billion in debt reduction, with total debt down 8.5% sequentially and nearly 20% year over year, with additional reductions expected throughout the year. The reduction improves the company’s credit rating, free cash flow and return on equity outlook. Delta has not yet resumed share buybacks but plans to do so in 2025, in addition to increasing its dividend distribution. In 2024, the company grew a nickel per quarter, or 50%, and could easily maintain the same percentage growth in 2025. Ultimately, Delta is expected to return its distribution to pre-COVID levels and continue to grow from there. The increase in the $1.00 quarterly payments issued in 2019 represents a 165% increase over F2024 levels.
Delta analyst trends have been positive for 2024, and this trend will continue into 2025, providing additional lift to the market. The trend includes increased coverage, stronger sentiment and upward revisions to price targets, leading to a 40% increase in consensus over 12 months. Consensus estimates call for shares to rise 15% this year from critical levels to a new all-time high of $77, with revisions suggesting an even higher price could be reached. The first two revisions tracked by MarketBeat for the fourth quarter included two price target increases to $75 and $78, in line with this forecast. A high price target of $90 was set by UBS in November, implying upside potential of 35% this year.
Delta Air Lines flies higher; Technical forecast in line with forecasts
Delta Air Lines crossed a major trigger point in 2024 and confirmed its bullish signal in 2025. The trigger point was the crossing of the previous historical maximum; confirmation in 2025 includes a rollback to verify support that was confirmed at a higher level. Support now lies at $60 and Delta’s share price is approaching new highs. The 2025 price action includes a breakout of new highs, suggesting a continuation of 2024 price trends. In this scenario, the market could rise to the mid-$80 range, which is in line with analyst consensus.
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