delta airlines today
Delta Airlines
As of 11:04 a.m. ET
- 52 week range
- $36.34
▼
$68.99
- Dividend yield
- 0.92%
- P/E ratio
- 9.03
- Price target
- $78.22
Delta Airlines New York Stock Exchange: D It could reach new highs in 2025 because the company continues to grow, cash flow improves, the balance sheet strengthens, and capital returns stream in. The takeaway from the Q4 report is that the business remains strong on all fronts, costs are controlled, and results are better than expected, including better than expected guidance.
The outlook for 2025 is for revenue to maintain a high single-digit growth pace, and may be cautious due to momentum in the travel industry. Business and consumer trends are positive, and there is potential for economic tailwinds to develop. Although expectations of interest rate cuts by the Fed have diminished, the reason is government policy; Trump’s policies are expected to increase 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 performance, delivering record quarterly results, closing the deal in a record year, and achieving industry-leading operational quality. Total revenue was $15.56 billion, up approximately 9.5% year over year and 750 basis points above the analyst consensus reported by MarketBeat. Revenue performance was driven by strong leisure and corporate markets, led by premium and loyalty spending, which accounted for 57% of the full-year total. Freight volume is also strong, up more than 30%, and demand is expected to remain strong across all segments in F2025.
The quality of earnings is also good. The company improved its total revenue per available seat by 40 basis points, generating a GAAP operating margin of 11% and adjusted 12%. Highlights include record quarterly pre-tax earnings, up nearly 30%, operating cash flow of $1.8 billion, and full-year free cash flow of $3.4 billion. On the bottom line, increased revenue and cost controls resulted in adjusted earnings of $1.85, $0.11, or 600 basis points, better than analysts expected and up 45% year over year.
Another factor explaining why Delta Air Lines will reach new highs in 2025 is guidance. The company expects first-quarter revenue growth in the range of 7% to 9%, ahead of consensus, with an EPS midpoint of $0.85 versus analyst expectations of $0.77. For the full year, Delta expects EPS growth of more than 10% versus 10% consensus, free cash flow at the top of expectations, debt reduction, and year-end leverage of less than 2x.
Delta’s balance sheet and capital return forecast provide upside to the stock price
Delta Air Lines stock forecast today
$78.22
21.08% upHe buys
Based on 14 analyst ratings
| High expectations | $90.00 |
|---|---|
| Average expectations | $78.22 |
| Low expectations | $60.00 |
Details of Delta Air Lines stock forecast
Delta’s balance sheet and capital return forecasts are key to stock price forecasts. Q4 results include another $1.5 billion in debt reduction, a total debt reduction of 8.5% sequentially and approximately 20% year-over-year, with additional reduction expected during the year. This downgrade strengthens the company’s credit quality debt rating and improves its free cash flow and capital return outlook. Delta hasn’t restarted stock buybacks yet, but is on track to do so in 2025, in addition to increasing its dividend. The company increased by a nickel a quarter, or 50%, in 2024 and can easily maintain the same percentage increase in 2025. Eventually, Delta is expected to return its distribution to pre-coronavirus levels and grow from there. The increase in $1.00 quarterly payments issued in 2019 represents a 165% increase from F2024 levels.
Delta analyst trends in 2024 have been positive, and this trend continues in 2025, providing an additional impetus to the market. This trend includes increasing coverage, strengthening sentiment, and upward target price revisions that have lifted the consensus by 40% in 12 months. The consensus estimate is that this stock will rise 15% from critical levels to a new all-time high of $77 this year, and reviews suggest a higher price point will be reached. The first and second revisions tracked by MarketBeat following the FQ4 results include two price target increases to $75 and $78, in line with those expectations. The high price target of $90 was set by UBS in November, implying a 35% upside this year.
Delta Air Lines rockets higher; Technical forecasts are in line with expectations
Delta Air Lines crossed an important trigger point in 2024 and confirmed its bullish signal in 2025. The trigger point was crossing the previous all-time high; Confirmation in 2025 involves a pullback to test support that was confirmed at a higher level. Support now lies at the $60 level, with Delta stock price tracking to new highs. The 2025 price action includes a breakout to new highs that indicates a continuation of 2024 price trends. In this scenario, the market could rise to the mid-$80 range to match analyst consensus forecasts.
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