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With a market cap of $43.4 billion, Delta Air Lines, Inc. (DAL) operates as the oldest airline of the United States. The Atlanta-based airline provides transportation for passengers as well as cargo in the U.S. and internationally. Its offerings also include aircraft maintenance and engineering support and overhaul services.
The airline giant has significantly outperformed the broader market over the past year. DAL stock has soared 70.2% over the past 52 weeks and jumped 11.2% on a YTD basis, outpacing the S&P 500 Index’s ($SPX) 22.7% surge over the past year and 2.7% gain in 2025.
Narrowing the focus, Delta has also outpaced the industry-focused U.S. Global Jets ETF’s (JETS) 37.7% gains over the past year and 2.7% returns on a YTD basis.
Delta Air Lines’ stock prices soared 9% after the release of its impressive Q4 results on Jan. 11. The company reported a robust 9.4% year-over-year growth in revenues to $15.6 billion which surpassed the Street’s expectations by 3.8%. Meanwhile, Delta observed a notable drop in its aircraft fuel expenses and related taxes during the quarter which boosted its operating margins and led to a staggering 29.8% year-over-year growth in operating income to $1.7 billion.
Furthermore, Delta remains confident in reporting even more impressive results in fiscal 2025. It expects a continued shift towards premium products and experiences, along with strong demand for travel. Observing the demand strength and its positioning, Delta gave solid guidance for the current fiscal, expecting its pre-tax income to exceed $6 billion, EPS to be over $7.35, and free cash flow to be more than $4 billion, which attracted investor attention.
For fiscal 2025, ending in December analysts expect DAL to deliver a 24.5% year-over-year growth in adjusted EPS to $7.67. Delta has a mixed earnings surprise history. While it has missed the Street’s bottom-line estimates twice over the past four quarters, it has surpassed the expectations on two other occasions. Its adjusted EPS of $1.85 for the last reported quarter surpassed the consensus estimates by 5.1%.
DAL has a consensus “Strong Buy” rating overall. All the 21 analysts covering the stock have a “Strong Buy” recommendation on Delta.
This configuration has been consistent over the past three months.
On Jan. 7, Susquehanna analyst Christopher Stathoulopoulos maintained a “Positive” rating on the stock while raising the price target to $75.
DAL’s mean price target of $81.88 represents a 21.7% premium to current price levels while its street-high target of $100 suggests a staggering 48.7% upside potential.
