Quick Overview
- Delta shares have gained roughly 5% during the last 30 days while competitors Southwest, United, and American Airlines fell over 10%
- First-quarter results arrive Wednesday, April 8, prior to market open
- Jet fuel prices jumped 103% within one month to $195 per barrel following Iran conflict escalation — Delta operates without fuel hedging
- Wall Street projects Q1 revenue at $14.8B (up 5.38%) with EPS of $0.62 compared to $0.46 previously
- Technical indicators show DAL maintaining support above 50-day and 100-day EMAs, with $76 year-to-date peak as next upside level
Delta Air Lines approaches its first-quarter financial release on April 8 with stronger momentum compared to industry competitors. Shares have advanced approximately 5% during the previous month, creating a stark contrast with Southwest, United, and American Airlines, which each declined more than 10% during the identical timeframe.
This performance divergence stems from several operational factors. Delta has prioritized premium cabin offerings, capturing affluent travelers who maintain spending patterns during economic uncertainty. During the fourth quarter, premium cabin ticket revenue climbed 9% to approximately $5.7 billion, whereas main cabin revenue decreased 7% to $5.62 billion.
The carrier demonstrated resilience following a challenging period in late February, when shares dipped beneath the 50-day moving average amid rising bond yields and oil prices after Iran conflict escalation. A significant rebound on March 9 enabled DAL to reclaim position above that technical threshold.
Attention now turns to Wednesday’s financial disclosure.
Analyst projections call for Q1 revenue reaching $14.8 billion, representing a 5.38% year-over-year gain, with earnings per share arriving at $0.62 against $0.46 during the comparable prior-year period. These expectations face potential headwinds.
Fuel Expense Pressure Intensifies
Delta maintains a policy of operating without jet fuel hedging. This approach carries consequences under current conditions. IATA data reveals average jet fuel prices have escalated to $195 per barrel — representing a 103% increase from one month prior — propelled by supply constraints connected to Iran conflict developments.
This surge directly impacts profitability margins. Delta management will likely discuss how ongoing military tensions influence the 2025 financial outlook during the earnings call. While the carrier successfully managed oil price volatility following Russia’s 2022 Ukraine invasion, the present acceleration presents significant challenges.
Company guidance for Q1 adjusted earnings per share spans $0.50 to $0.90, with the $0.70 midpoint positioned slightly below the $0.72 Wall Street consensus established at guidance release.
Full-year projections target earnings between $6.50 and $7.50 per share. Annual revenue forecasts anticipate $67.2 billion for 2025, advancing to $70 billion in 2026.
Technical Picture Shows Constructive Formation
From a chart perspective, DAL demonstrates solid technical structure. Shares rebounded from a March trough of $55.20 and currently trade near $66.70. The stock maintains position above both 50-day and 100-day exponential moving averages, along with an ascending trendline established since last June.
Recent price action created a harami candlestick configuration — featuring a compact bullish candle following a larger bearish session — which technical analysts frequently interpret as a potential trend reversal indicator.
The $76 year-to-date high represents approximately 14% upside from present levels and stands as the subsequent technical objective.
During Q4, Delta generated revenue of $16 billion alongside operating profit of $1.5 billion. Full-year 2024 results delivered revenue of $63.4 billion, operating profit of $5.8 billion, and operating cash flow totaling $14.1 billion.
