Delta Lifts Outlook, Notes Premium Travel Strength

Delta Air Lines reported record second-quarter revenue and better-than-expected profits, leading to the reinstatement of its full-year profit outlook after previously pulling guidance in April due to economic uncertainty and President Trump's tariff announcements. Delta now forecasts adjusted earnings of $5.25 to $6.25 per share for 2025, down from January’s prediction but still above analyst expectations. The improved outlook is credited to stabilized travel demand, strong growth in premium and loyalty revenues, and lower fuel costs, even as main-cabin bookings remain weak and passenger growth stays flat year-over-year. International and premium cabin sales outperformed, while domestic and price-sensitive travel demand lagged. The airline's results boosted shares of rivals and signaled resilience in both consumer and corporate travel sectors despite macroeconomic headwinds. Executives observed a trend toward later bookings and heightened demand for premium offerings.