Delta Air Lines predicts profit growth during the upcoming quarters because of stable bookings together with controlled capacity management and cost reduction strategies. The airline stock price increased by 9% on Thursday after the company announced better-than-expected earnings projections because of improved industry discipline.
The company predicts third-quarter earnings between $1.25 and $1.75 per share with a projected average of $1.50 which exceeds Wall Street predictions of $1.31. The company now predicts full-year adjusted earnings to fall between $5.25 and $6.25 per share. Delta reports that it maintains strict control over costs because non-fuel operating expenses will either stay constant or decrease during Q3.
The domestic market continues to experience price pressure yet Delta expects its unit revenue to increase because of capacity reductions starting in July. The current passenger traffic stability below previous-year levels has led airlines to reduce their supply to prevent discounting.
Delta restored its positive outlook after removing its 2025 forecast because of Trump’s trade policies which caused demand to decline. The airline benefits from its diverse revenue streams and strong demand for premium travel services.
The shares of United and American Airlines increased by 7% or more after Delta released its positive outlook. The airline industry’s transition toward controlled expansion and better operational management has led investors to believe that this year will experience a positive change.
