Delta Air Lines Earnings On Deck With Stock (DAL) Near Support – What To Expect

Delta Air Lines stock price (NYSE: DAL) is hovering around the $50 support level leading into the release of its second-quarter 2025 earnings this morning.

Analysts are projecting an earnings per share (EPS) of $2.03, declining from the $2.36 reported in the same quarter Y/Y. Revenue is expected at $16.18billion, a drop of 2.85% Y/Y.

Delta's stock hovers awfully close to its 200-day simple moving average (SMA) of $50.92, while remaining above its 50-day SMA of $48.32. This technical positioning suggests a market in relative equilibrium, yet the underlying sentiment is anything but certain. The stock has fallen 14% since the start of the year, continuing to underperform markets.

The shadow of withdrawn profit forecasts looms large.

Back in April, Delta made the difficult decision to retract its initial 2025 profit forecast, citing escalating global trade tensions and the potential impact of new tariff policies. This move, while prudent, signaled a significant shift in the company's outlook.

The initial projection of adjusted pre-tax earnings of $6 billion and EPS exceeding $7.35 now seems a distant aspiration. The airline's management has adopted a more defensive posture, prioritizing capacity adjustments and margin protection to weather the economic storm.

While first-quarter revenues of $14.04 billion and a net profit of $298 million exceeded market expectations, the withdrawal of the full-year forecast injected a dose of caution into the market, demonstrating the very real impacts on the airline industry from global economic factors.

The ability of U.S. airlines, including Delta, to accurately forecast business performance has been severely hampered by economic instability and ongoing trade disputes. This lack of clarity has prompted major carriers to retract full-year outlooks and adjust capacity growth.

Delta, in particular, has reduced its flight schedule in response to softening demand, especially in domestic markets. This proactive approach to cost management and operational efficiency is crucial for navigating the current uncertain environment.

While the prevailing narrative focuses on economic headwinds and operational challenges, a bullishly minded holder could suggest that Delta is strategically positioned to capitalize on the current environment. The airline's decision to reduce capacity, while seemingly defensive, could lead to improved pricing power and higher yields in the long run. Furthermore, the focus on premium travel products and services could insulate Delta from the price wars that often plague the industry.

As markets brace for the Q2 2025 earnings report, the key questions revolve around Delta's ability to manage costs, maintain profitability, and navigate the complex interplay of economic and operational challenges. If broken to the downside, the $50 level could provide some resistance in future, with $53 a near term target to the upside for bulls.