Airline Delta Air Lines (DAL) is set to report its Q1 earnings next week on April 8. The stock is down 3% in the year-to-date, hit by higher fuel costs and customer caution over the economy and the Iran war.
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According to TipRanks’ Options Tool, options traders expect about a 7.82% move in either direction in DAL stock in reaction to its Q1 results.
What Wall Street Expects
Wall Street expects Delta Air Lines to report first-quarter earnings of 64 cents per share, indicating a 39.1% year-over-year increase. Revenues over the period are expected to come in at $14.82 billion, indicating a 5.6% increase from the same time last year.
Will DAL beat these forecasts? As can be seen below, it has a fairly good track record of doing just that.
What are the Key Issues Ahead of Earnings?
In its last results, DAL reported record annual revenues of $58.3 billion, up 2.3% year over year, in 2025. It was boosted by premium flyer and cargo demand. However, it warned that main cabin demand – normal, economy travelers – had not recovered and that the government shutdown had wiped $200 million off its Q4 pre-tax profit.
In Q1, high fuel costs are expected to have dented its bottom-line profit figures. According to Zacks, with most U.S. carriers having abandoned fuel hedging strategies, oil supply disruption from the Iran war has left them fully exposed to price spikes. However, Delta’s refinery in Pennsylvania gives it some protection.
However, bookings are expected to have remained strong again, driven by consumer and corporate demand.
“Investors will be looking for Delta to quantify the impact of the Iran war to date and how it might affect upcoming quarters,” said Russ Mould, AJ Bell Investment Director. “There will also be particular interest in the extent to which Delta’s ownership of an oil refinery through its Monroe Energy subsidiary can insulate it against increasing fuel costs at a time when the cost of jet fuel is rising faster than crude oil prices.”
TD Cowen analyst Thomas Fitzgerald recently lowered his price target on Delta Air Lines to $76 from $77 and kept a Buy rating on the shares. He said investors are skeptical about the resiliency of travel demand given the likelihood of a prolonged period of higher energy prices and decelerating credit card data.
Is DAL a Good Stock to Buy Now?
On TipRanks, DAL has a Strong Buy consensus based on 17 Buy and 1 Hold ratings. Its highest price target is $90. DAL stock’s consensus price target is $80.53, implying a 20.63% upside.
