Why Delta (DAL) Stock Is Up Today

What Happened?

Shares of global airline Delta Air Lines (NYSE:DAL) jumped 4.7% in the morning session after the company reported third-quarter results that surpassed Wall Street's expectations for both revenue and profit. 

The airline posted GAAP earnings of $2.17 per share on revenue of $16.67 billion, which beat analysts' estimates by 39.8% and 3.8%, respectively. The positive results were supported by a 6.4% year-on-year increase in revenue. The company also benefited from improved operational efficiency, as its operating margin increased to 10.1% from 8.9% in the same quarter last year. Looking ahead, Delta provided an optimistic revenue forecast for the fourth quarter, with its guidance of $16.03 billion coming in above expectations. However, the company's full-year earnings per share guidance of $6.00 at the midpoint fell short of consensus estimates.

After the initial pop the shares cooled down to $59.87, up 4.8% from previous close.

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What Is The Market Telling Us

Delta’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock dropped 3.1% as a confluence of negative economic data pointed to a weak economy. The latest Survey of Consumer Expectations from the New York Fed revealed that households' short-term inflation expectations are rising, while their outlook on the labor market is deteriorating. Consumers expressed greater concern about potential job losses and expect lower earnings growth, factors that directly impact discretionary spending. Adding to the unease, Chief Economist at Moody's Analytics, Mark Zandi, warned that 22 states are already showing clear signs of a recession, placing the broader U.S. economy in a precarious position. The ongoing U.S. government shutdown further dampens sentiment, threatening to weigh on incomes and purchasing power.

Delta is up 1.4% since the beginning of the year, but at $59.87 per share, it is still trading 13.3% below its 52-week high of $69.06 from February 2025. Investors who bought $1,000 worth of Delta’s shares 5 years ago would now be looking at an investment worth $1,825.

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