Shares of Delta Air Lines Inc (NYSE:DAL) surged more than 11% at the open on Thursday after the carrier reported second-quarter earnings that beat Wall Street expectations and reinstated its full-year guidance, signaling confidence in strong travel demand and operational efficiency.
The Atlanta-based airline posted adjusted earnings per share of $2.10, topping the average analyst estimate of $2.05, though the figure marked an 11% drop from a year earlier.
Revenue rose 1% year-over-year to $15.5 billion, slightly ahead of forecasts.
Net income fell 10% to $1.37 billion, and operating income declined by the same margin to $2.05 billion, reflecting ongoing cost pressures in the industry.
Despite the year-on-year declines, Delta reinstated its full-year 2025 earnings outlook, projecting adjusted EPS between $5.25 and $6.25, compared with analysts' expectations of $5.39. The airline also reaffirmed its target to generate $3 billion to $4 billion in free cash flow.
“As we enter the second half of our centennial year, we remain focused on executing strategic priorities to drive strong earnings and cash flow,” CEO Ed Bastian said.
The company expects third-quarter adjusted EPS in the range of $1.25 to $1.75 and revenue growth of up to 4% year-over-year. Operating margins are forecast between 9% and 11%.
In Q2, premium, loyalty, and cargo segments all posted year-over-year growth, with Maintenance, Repair & Overhaul (MRO) revenue surging 29%. International markets also remained strong, led by an 11% increase in Pacific region revenue.
Delta cited efficiency gains and lower fuel costs, with average fuel prices down 14% to $2.26 per gallon and total adjusted fuel expense down 11% to $2.51 billion.
Operationally, the airline launched expanded partnerships—including a stake in WestJet and an extended joint venture with LATAM—and rolled out its largest-ever Transatlantic summer schedule.
Delta increased its quarterly dividend by 25% and returned a total of $793 million to shareholders through dividends and buybacks during the quarter.
President Glen Hauenstein said demand trends have stabilized and high-margin revenue streams are showing resilience, while CFO Dan Janki noted that Q3 is expected to mark the airline’s best non-fuel unit cost performance of the year.