Delta Air Lines (DAL) recently issued an extremely positive forecast, predicting high sales growth for the coming year. In an investor day presentation earlier this week, the company laid out its plans for the coming year, discussing why it believes recent growth will continue and highlighting positive macroeconomic tailwinds. According to Delta’s forecast, revenue growth in 2025 will be in the mid-single-digit percentage points, an increase from where it was in 2024.
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Why Is Delta Stock Down Today?
Despite these positive predictions, Delta stock is still struggling today. As of this writing, shares are down 2% for the morning, likely due to negative market momentum. The past week has been volatile, with DAL remaining mostly in the red. However, over the past three months, Delta stock has made significant progress, rising 58% since August 2024, even after the company issued a disappointing Q4 forecast.
The positive investor day forecasts indicate that Delta’s growth is likely to continue. The company credited the “resilient economy” with helping generate strong travel demand and higher credit card spending, particularly for high-end services and experiences. Its plans include expanding flight operations between 3 and 4% during the coming year, which will likely keep share prices trending upward.
Delta’s focus on catering to air travelers who spend more money has paid off. As CNBC reports, the company has stated that it believes it has an advantage “because of sharp wealth growth in high-earning households since 2019.” If this trend continues into 2025, Delta will likely continue to grow and continue operating as the United States’ most profitable airline.
Wall Street Remains Bullish on DAL Stock
Turning to Wall Street, analysts have a Strong Buy consensus rating on DAL stock based on 17 Buys with no Holds or Sells assigned in the past three months, as indicated by the graphic below. After an 80% rally in its share price over the past year, the average DAL price target of $72.46 per share implies 13% upside potential.
