Delta Airlines Expects $200 Million Impact from Government Shutdown
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
Updated: 4 day ago0mins
- Profitability Downgrade: Delta Airlines anticipates a $200 million reduction in its fourth-quarter pre-tax profit due to the government shutdown, translating to about 25 cents per share, highlighting the direct financial impact of the shutdown on the airline industry.
- Flight Cancellations Impact: The 43-day government shutdown resulted in flight cancellations at 40 major airports, leaving thousands of air traffic controllers and other staff working without pay, severely affecting operational efficiency in the aviation sector.
- Demand Recovery Signs: Despite the shutdown's effects, Delta reported that demand for the December quarter remains
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Analyst Views on DAL
Wall Street analysts forecast DAL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DAL is 73.64 USD with a low forecast of 65.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
14 Buy
0 Hold
0 Sell
Strong Buy
Current: 67.240
Low
65.00
Averages
73.64
High
90.00
Current: 67.240
Low
65.00
Averages
73.64
High
90.00
TD Cowen
Buy
maintain
$72 -> $77
2025-12-04
New
Reason
TD Cowen
Price Target
$72 -> $77
2025-12-04
New
maintain
Buy
Reason
TD Cowen raised the firm's price target on Delta Air Lines to $77 from $72 and keeps a Buy rating on the shares. The firm updated its model after the company delievered a better-than-expected guidance update.
Citi
NULL
to
Buy
initiated
$77
2025-12-04
New
Reason
Citi
Price Target
$77
2025-12-04
New
initiated
NULL
to
Buy
Reason
Citi initiated coverage of Delta Air Lines with a Buy rating and $77 price target. The firm believes the setup is positive for the airlines with an "elongated mid-cycle" beginning in 2026. Citi sees the largest beneficiaries as being the "supermajors." The large airlines offer the most favorable risk/reward, the analyst tells investors in a research note. On the other side, Citi believes the legacy low-cost carriers will be underperformers through the cycle.
BofA
Dan Janki
Buy
maintain
$70 -> $74
2025-10-15
Reason
BofA
Dan Janki
Price Target
$70 -> $74
2025-10-15
maintain
Buy
Reason
BofA raised the firm's price target on Delta Air Lines to $74 from $70 and keeps a Buy rating on the shares after having hosted CFO Dan Janki for a fireside chat following Q3 results last Thursday. Both the Q3 results and the Q4 outlook provided earnings upside, while the CFO spoke to a long term strategy that leads the firm to continue to believe that Delta is "a key beneficiary of the structural changes occurring across the industry," the analyst tells investors.
Freedom Capital
Buy
maintain
$64 -> $69
2025-10-15
Reason
Freedom Capital
Price Target
$64 -> $69
2025-10-15
maintain
Buy
Reason
Freedom Capital raised the firm's price target on Delta Air Lines to $69 from $64 and keeps a Buy rating on the shares. Delta delivered sales above the market consensus, demonstrating a slight change of market conditions towards higher prices, positive impacting margins, the analyst tells investors in a research note. Despite macro challenges, the firm's outlook on Delta remains positive and thinks Delta could end the year with a slight EPS surprise.
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About DAL
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company has hubs and markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon, and Tokyo. Its segments include Airline and Refinery. Its airline segment is managed as a single business unit that provides scheduled air transportation for passengers and cargo throughout the United States and around the world and includes its loyalty program, as well as other ancillary businesses. Its refinery segment operates for the benefit of the airline segment by providing jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third parties. The refinery's production consists of jet fuel as well as non-jet fuel products.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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