Investing.com– Analysts at UBS boosted their price target on Delta Air Lines Inc (NYSE: ), citing strong growth in revenue per available seat mile (RASM) and improving 2025 and 2026 earnings estimates.
UBS raised its target to $90 from $88 and maintains a “Buy” rating on the stock.
Delta’s strong Q4 2024 results beat market expectations, with sequential RASM growth accelerating across all regions, led by Asia-Pacific and Atlantic.
UBS pointed to Delta’s diverse network and focus on premium travel as key drivers of its dominance. Premium sales rose 8% in the fourth quarter, outpacing main cabin growth of 2%, indicating continued strength in higher-margin segments.
For 2025, Delta’s management has set earnings per share (EPS) of at least $7.35. UBS expects an increase to this guidance, projecting $7.73 in earnings per share for the year.
Analysts believe headline cabin revenue 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 decrease through efficiency gains.
UBS maintains its bullish view on Delta, stressing that the airline is well-positioned to capitalize on strong air travel demand and premium pricing trends. With a favorable revenue outlook and disciplined cost management, Delta is poised for sustained earnings growth, supporting a higher price target, analysts said.
