Delta Air Lines Restores Full-Year Outlook After Strong Q2 Earnings
Delta Air Lines reported financial results for the second quarter that were stronger than analysts had expected. Following these results, the company reinstated its full-year financial outlook, which it had previously withdrawn due to uncertainty.
Delta announced a new profit target for the year, after suspending its prior guidance three months ago. This move suggests that travel demand is recovering from earlier slowdowns caused by economic uncertainty and hesitancy among travelers.
Despite challenges such as softer sales in its main cabin and recent economic turbulence, Delta's leadership said that demand has stabilized. However, the airline has set a lower profit outlook for 2025, with expected adjusted earnings between $5.25 and $6.25 per share, down from its earlier target.
Delta restored its outlook after reporting stronger-than-expected results for the second quarter and seeing signs that travel demand is stabilizing.
Delta previously withdrew its full-year outlook because of economic uncertainty and a slowdown in travel demand.
Delta lowered its profit target for 2025 compared to earlier forecasts, but it still expects improved demand moving forward.
Delta's stock price rose more than 10% in premarket trading following the announcement of the strong second-quarter results and the reinstated outlook.
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