Delta Air Lines Stock Rises Overnight Ahead of Q3 Earnings as Analysts Adjust Price Targets

Delta Air Lines, Inc. (DAL) saw its share price rise overnight ahead of its third-quarter earnings report scheduled for Friday. The movement came as financial analysts adjusted their outlooks for the carrier. Raymond James boosted its price target to $100 from $98, maintaining an outperform rating. Meanwhile, Susquehanna lowered its price target to $100 from $105 but kept its positive rating on the airline.

The adjustments reflect a mix of tailwinds and headwinds for the airline industry. While rising jet fuel costs are putting pressure on earnings expectations across major U.S. carriers, strong passenger demand and robust pricing power are helping to counter these challenges. Airlines are increasingly prioritizing higher fares over maximizing passenger loads on every flight, a strategy that boosts revenue per ticket. Additionally, reduced competition following the exit of Spirit Airlines is expected to support overall profitability for remaining carriers.

Investors are closely watching how Delta translates passenger traffic into revenue per available seat. Recent passenger screening data from the Transportation Security Administration shows that fourth-quarter travel trends are currently lagging behind the low-single-digit growth in domestic airline capacity. For the third quarter, average analyst estimates place Delta's revenue at $19.39 billion and earnings per share at $2.25.