UBS Analysts Increase Price Target for Delta Air Lines Amid Robust Revenue Growth
UBS analysts have increased their price target for Delta Air Lines Inc (NYSE: DAL) to $90 from $88, citing robust revenue per available seat mile (RASM) growth and improving earnings estimates for 2025 and 2026. The analysts retain a “Buy” rating for the stock.
Delta’s strong fourth-quarter results for 2024 exceeded market expectations, with sequential RASM growth accelerating across all regions, led by Asia-Pacific and the Atlantic. The airline’s diversified network and premium travel focus were key drivers of its outperformance, with premium sales rising 8% in the fourth quarter, outpacing the main cabin’s 2% growth.
For 2025, Delta’s management has guided earnings per share (EPS) to at least $7.35. UBS expects an upside to this guidance, projecting $7.73 in EPS for the year. The analysts believe main cabin revenues could improve further as the year progresses, given easier year-over-year comparisons in the second half. Cost management also remains a positive factor, with CASM-ex (cost per available seat mile, excluding fuel) expected to moderate through efficiency gains.
UBS maintains its bullish stance on Delta, emphasizing that the airline is well-positioned to capitalize on strong air travel demand and premium trends. With a favorable revenue outlook and disciplined cost management, Delta is set for sustained earnings growth, supporting the higher price target.