Delta Air Lines (DAL) Q2 Earnings: Can Premium Travel & Expansion Outweigh Tariff Headwinds?

Delta’s Q2 earnings drop into a turbulent market—will premium cabins and new facilities offset tariff turbulence?

Sky-high expectations: Investors are buckling up for DAL’s earnings call, betting luxury travel demand stays resilient despite economic headwinds.

Facility boom or bust? The airline’s aggressive expansion faces a reality check: can infrastructure keep pace with post-pandemic travel mania?

Tariff turbulence ahead: Geopolitical trade winds threaten to clip Delta’s wings—because nothing says 'global growth' like protectionist policies.

Closer: If Delta misses, expect Wall Street to suddenly remember it’s an airline stock—that rare sector where 'long-term hold' is an oxymoron.

TLDR

• Delta will report Q2 earnings on July 10, with EPS expected at $2.07 on $16.21 billion in revenue

• Premium cabin strength, international demand, and loyalty revenue remain key performance drivers

• Tariff exposure and rising fuel prices could impact FY25 guidance

• Delta expanded in EMEA with new net-zero HQ planned in the Netherlands

• UBS upgraded Delta to Buy with a $66 price target, citing improved outlook

Delta Air Lines (NYSE: DAL) is set to report second-quarter earnings on July 10, 2025, before the market opens. The stock last traded at $50.42, reflecting investor anticipation around key results amid evolving market conditions.

Delta Air Lines, Inc. (DAL)

Analysts expect Delta to post earnings per share (EPS) of $2.07, a 12.3% year-over-year decline, on revenue of $16.21 billion, which WOULD mark a 5.3% increase from Q2 2024.

Premium Travel and International Demand in Spotlight

Delta’s recent performance has hinged on resilience in premium cabins and strong international traffic. In Q1, revenue from international routes surged 16%, with premium revenue rising 7%, helping offset a 1% decline in domestic TRASM (Total Revenue per Available Seat Mile). The airline’s partnership with American Express continued to be a reliable source of loyalty revenue.

These dynamics remain crucial in Q2. With leisure travel showing price sensitivity and softness in Main Cabin bookings, Delta’s higher-margin premium and business-class offerings could once again be its strongest segment. Investors will closely watch premium cabin revenue growth, international route performance, and TRASM metrics.

Macroeconomic and Tariff Headwinds

The airline sector is facing multiple external pressures. Jet fuel costs have climbed following geopolitical tensions, with barrel prices rising over 7% mid-June. Delta, which flagged tariffs as a risk earlier this year, remains vulnerable to rising costs tied to imported aircraft components and metals. Management’s earnings-day commentary on FY25 guidance, previously withheld due to tariff uncertainty, will be especially pivotal.

Domestic demand trends remain mixed. While TSA screenings during the July 4 week reached record highs, peaking at nearly 3 million on July 6, domestic airfares have slipped. Hopper reported the average round-trip fare at $265, the lowest in four years, highlighting pricing pressure even amid high volumes.

Facility Expansion Signals Long-Term Confidence

In a separate development, Delta announced a major expansion in EMEA with plans to construct a new 9,300-square-meter regional headquarters in Hoofddorp, Netherlands. The green building will be located at Park 20|20 and is expected to achieve net-zero energy usage and BREEAM-Outstanding certification. The facility, slated for completion by the end of 2026, will house 350 employees and feature Delta’s energy-efficient technologies.

This MOVE highlights Delta’s strategic focus on sustainability and growth in international markets. The facility’s rooftop will host 715 solar panels, and it will include EV charging stations, geothermal heating, and Delta’s proprietary energy storage system, demonstrating the airline’s commitment to ESG principles.