Delta Air Strains: UBS raises worth goal on sturdy income, earnings outlook

Investing.com– UBS analysts have elevated their worth goal for Delta Air Strains Inc (NYSE:DAL), citing sturdy income per obtainable seat mile (RASM) progress and bettering earnings estimates for 2025 and 2026.

UBS hiked the goal to $90 from $88 and retains a “Purchase” score for the inventory.

Delta’s sturdy fourth-quarter outcomes for 2024 exceeded market expectations, with sequential RASM progress accelerating throughout all areas, led by Asia-Pacific and the Atlantic.

UBS highlighted Delta’s diversified community and premium journey focus as key drivers of its outperformance. Premium gross sales rose 8% within the fourth quarter, outpacing the primary cabin’s 2% progress, indicating continued energy in higher-margin segments.

For 2025, Delta’s administration has guided earnings per share (EPS) to a minimum of $7.35. UBS expects an upside to this steerage, projecting $7.73 in EPS for the yr.

Analysts consider primary cabin revenues may enhance additional because the yr progresses, given simpler year-over-year comparisons within the second half. Price administration additionally stays a optimistic issue, with CASM-ex (price per obtainable seat mile, excluding gasoline) anticipated to average by way of effectivity positive factors.

UBS maintains its bullish stance on Delta, emphasizing that the airline is well-positioned to capitalize on sturdy air journey demand and premium traits. With a good income outlook and disciplined price administration, Delta is ready for sustained earnings progress, supporting the upper worth goal, analysts stated.