With a market cap of $28.9 billion, Delta Air Lines, Inc. (DAL) is a major U.S. airline that provides scheduled air transportation for passengers and cargo both domestically and internationally. The company operates through two segments, Airline and Refinery, with its airline segment generating the majority of revenues, while its refinery division supports the airline with jet fuel production and third-party agreements.

Shares of the Atlanta, Georgia-based company have lagged behind the broader market over the past 52 weeks. DAL has declined 11.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 10.2%. Moreover, shares of Delta Air Lines are down 24.2% on a YTD basis, compared to SPX’s nearly 4% dip.

Focusing more closely, Delta Air Lines has underperformed the Industrial Select Sector SPDR Fund’s (XLI) 9.7% return over the past 52 weeks. 

Shares of Delta Air Lines climbed 23.4% on Apr. 9 as the company reported Q1 2025 adjusted EPS of $0.46, exceeding the consensus estimate and marking a 2.2% year-over-year increase. Also, its revenue reached $14 billion, surpassing the consensus estimate, driven by a 17% increase in cargo revenues to $208 million and a 3% year-over-year rise in passenger revenues to $11.5 billion. Delta’s adjusted operating cash flow stood at $2.4 billion, and the company reduced its planned capacity growth for the second half of 2025 to flat year-over-year to protect margins.

For the fiscal year ending in December 2025, analysts expect DAL’s EPS to decline 17.1% year-over-year to $5.11. The company's earnings surprise history is mixed. It topped the consensus estimates in two of the last four quarters while missing on two other occasions.

Among the 21 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 18 “Strong Buy” ratings and three “Holds.” 

This configuration is less bullish than three months ago, with 21 “Strong Buy” ratings on the stock.

On Apr. 9, Morgan Stanley lowered its price target on Delta Air Lines to $88 but maintained an “Overweight” rating.

As of writing, DAL is trading below the mean price target of $59.05. The Street-high price target of $88 implies a potential upside of 92.9% from the current price levels.