Delta Air Lines: UBS raises price target on strong revenue, earnings outlook

Investing.com– UBS analysts have increased their price target for Delta Air Lines Inc (NYSE:), citing robust revenue per available seat mile (RASM) growth and improving earnings estimates for 2025 and 2026.

UBS hiked the target to $90 from $88 and retains a “Buy” rating for the stock.

Delta’s strong fourth-quarter results for 2024 exceeded market expectations, with sequential RASM growth accelerating across all regions, led by Asia-Pacific and the Atlantic.

UBS highlighted Delta’s diversified network and premium travel focus as key drivers of its outperformance. Premium sales rose 8% in the fourth quarter, outpacing the main cabin’s 2% growth, indicating continued strength in higher-margin segments.

For 2025, Delta’s management has guided earnings per share (EPS) to at least $7.35. UBS expects an upside to this guidance, projecting $7.73 in EPS for the year.

Analysts believe main cabin revenues could improve further as the year progresses, given easier year-over-year comparisons in the second half. Cost management also remains a positive factor, with CASM-ex (cost per available seat mile, excluding fuel) expected to moderate through efficiency gains.

UBS maintains its bullish stance on Delta, emphasizing that the airline is well-positioned to capitalize on strong air travel demand and premium trends. With a favorable revenue outlook and disciplined cost management, Delta is set for sustained earnings growth, supporting the higher price target, analysts said.