Delta Air Lines Update: Cleared for Takeoff, And Then Some
How a reassuring Q2 beat and raised guidance sent DAL soaring, and what we’re doing next.
Yesterday afternoon, Delta DAL 0.00%↑ rolled out its June-quarter numbers, and honestly, they impressed. Here’s the skinny on what happened, why the stock spiked, and how we’re tweaking our playbook now that the runway’s clear.
1. The Headlines
Record Non-GAAP Revenue: $15.5 billion, up 1% year-over-year on a 4% capacity rise, our highest June quarter ever.
Adjusted EPS: $2.10, topping consensus (Analysts had been looking for about $2.08).
GAAP EPS: A juicy $3.27, reflecting strong margins and one-time items.
Operating Margin: 13.2% on a non-GAAP basis, solid, given fuel and labor headwinds.
2. Restored Guidance & Cash Flow
Full-Year EPS: Brought back to $5.25–$6.25, above what the Street was penciling.
Free Cash Flow: Now expected at $3–$4 billion, keeping that debt choke-point well in check.
Looking into Q3: Revenue growth of 0–4% and EPS of $1.25–$1.75, right in line with prior expectations.
3. Market Reaction
Delta shares jumped 10–12% on the news, making DAL one of the top S&P performers yesterday Investopedia. That kind of pop tells you two things:
Investors were itching for good news after a choppy 2025 range.
Restored guidance really mattered, confidence is back in the cockpit.
4. Updated Trade Plan
In our July 3 post, we laid out a near-term breakout trade above $51. Well, we got our signal:
Entry: $51.10 (triggered)
Stop: $50.00 (stood firm)
Target: Initial pop to $55.00 (hit); we’d taken partial profits there.
What’s next? With the stock now sitting around $56, watch for a retest of the $54–$55 zone as a chance to add. From here, a move toward $60 seems within reach if volume stays healthy. But if earnings jitters resurface, keep an eye on the $52–$53 area for a fallback entry.
5. Long-Term Investment View
For the buy-and-hold crew, yesterday’s report only strengthens the case to scale in on dips down to $45–$47, that range still offers a solid free-cash-flow yield (~8%) and a chance to lock in a forward dividend yield north of 2%. With centennial celebrations behind us, Delta’s focus on premium products and operational efficiency should support sustainable growth.
Bottom Line:
Delta delivered on its promise, strong revenue, better-than-expected earnings, and a confident outlook. The stock’s breakout gives us opportunities both to trade near term and to accumulate for the longer haul. Fasten your seatbelts—this flight still has plenty of runway ahead.