Delta Air Lines predicts lowered earnings outlook amid economic uncertainty

In the second quarter of 2025, Delta Air Lines reported a revenue of $15.51 billion, signifying a slight increase of approximately 1% compared to the same period in the previous year. The carrier noted that its premium revenue streams saw growth, with premium cabin sales outpacing general coach sales. Despite this positive trend, domestic revenue experienced a decline of 1% to $9.3 billion. Recognizing the changing dynamics in travel demand due to external pressures, including tariffs and economic uncertainty, Delta reissued its profit forecast for the year, forecasting earnings between $5.25 and $6.25 per share, which is notably less optimistic than the earlier prediction of $7.35 per share made in January. Delta’s leadership emphasized that these adjustments were necessary due to broader macroeconomic changes and varying travel demand patterns, particularly in domestic markets, as evidenced by a report from American Airlines projecting a similar trend. Analysts observed an uptick in Delta's stock, with shares rising approximately 12% on the day of the earnings report as investors reacted positively to the reinstated profit outlook, albeit at reduced figures. Delta's President Glen Hauenstein commented on the resilience of their premium business model, which contributed significantly to the overall revenue, encompassing 59% of total earnings. Looking ahead, Delta expressed cautious optimism, expecting total revenue for the September quarter to stabilize or increase by up to 4% compared to the previous year, as they continue to adapt their capacity to align with market demands.