U.S. Airfares Drop 3.4% YoY; Delta Air Lines Reports $16B Q4 Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Airfare Trends: According to the Bureau of Transportation Statistics, U.S. airfares fell 3.4% year-over-year in December, although they rose 5.2% compared to November, indicating market volatility and shifts in consumer demand.
- Delta's Earnings Report: Delta Air Lines (DAL) reported Q4 revenue of $16 billion, with operating income of $1.5 billion and an operating margin of 9.2%, demonstrating the company's ability to maintain stable profitability in a competitive market.
- Future Outlook: Delta projects 2026 EPS between $6.50 and $7.50, slightly below the market consensus of $7.20, reflecting the company's cautious stance amid economic uncertainty.
- Industry Dynamics: Despite ongoing aircraft delivery delays, U.S. airline capacity is expanding, helping to mitigate sharp price fluctuations, while the upcoming 2026 World Cup is expected to influence airfare on major routes.
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: 71.030
Low
65.00
Averages
73.64
High
90.00
Current: 71.030
Low
65.00
Averages
73.64
High
90.00
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
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.
