The Zacks Analyst Blog Highlights Delta Air Lines, SkyWest and United Airlines

For Immediate ReleaseChicago, IL – July 8, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Delta Air Lines, Inc. DAL, SkyWest, Inc. SKYW and United Airlines UAL.Here are highlights from Monday’s Analyst Blog:Is a Beat in the Cards for Delta (DAL) in Q2 Earnings?Delta Air Lines, Inc. is scheduled to report second-quarter 2025 results on July 10, before market open.Delta Air Lines’ earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, the average beat being 3.96%. However, the company missed the Zacks Consensus Estimate in the remaining two quarters. (See the Zacks Earnings Calendar to stay ahead of market-making news)Let’s see how things have shaped up for Delta Air Lines this earnings season.Factors Likely to Have Influenced DAL’s Q2 PerformanceThe Zacks Consensus Estimate for DAL’s second-quarter 2025 earnings has been revised upward by 1.02% in the past 60 days to 1.99 per share. The consensus estimate lies within the company provided guided range of $1.7-$2.3. However, the consensus mark implies a 15.7% downside from the year-ago actual.We expect geopolitical uncertainty, tariff-related pressures, and persistent inflation to weigh on DAL’s operations and weaken travel demand, especially in the international and business segments. These headwinds are causing volatility in passenger traffic and limiting the airline’s ability to maintain strong yields and consistent revenue growth. Softening demand is preventing DAL from fully optimizing its network and operating at peak efficiency.Labor costs are also likely to have been high, which would have hurt the company’s bottom-line performance in the June quarter. We expect expenses on salaries and related costs to increase 13.2% in the to-be-reported quarter from the second quarter of 2024 actuals.The Zacks Consensus Estimate for DAL’s second-quarter 2025 revenues is pegged at $16.18 billion, indicating a 2.89% decline year over year.Due to the difficult revenue environment, Delta has issued a cautious outlook for the second quarter of 2025, projecting adjusted revenues to either decline 2% or increase up to 2% year over year.On a brighter note, the southward movement of oil prices bodes well for the bottom-line growth of industry participants. This is because fuel expenses are a significant input cost for the aviation industry. Crude oil is struggling in 2025, with prices sliding to multi-month lows. Tariff concerns, weakening consumer confidence, and the production increase by OPEC+ have all contributed to this downward pressure. Oil prices decreased by 6% in the April-June 2025 period and by 9% from the beginning of 2025 to date.What Our Model Says About DALOur proven model predicts an earnings beat for Delta Air Lines this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.Delta Air Lines has an Earnings ESP of +0.26% and a Zacks Rank #3.Delta Air Lines, Inc. price-eps-surprise | Delta Air Lines, Inc. QuoteHighlights of DAL’s Q1 EarningsDelta Air Lines reported first-quarter 2025 earnings (excluding 9 cents from non-recurring items) of 46 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents. Earnings increased 2.2% on a year-over-year basis due to low fuel costs.Revenues in the March-end quarter were $14.04 billion, surpassing the Zacks Consensus Estimate of $13.81 billion and increasing 2.1% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 3.3% year over year to $13 billion.Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.SkyWest, Inc. has an Earnings ESP of +3.06% and a Zacks Rank #2 at present. SKYW is scheduled to report second-quarter 2025 earnings on July 24. You can see the complete list of today’s Zacks #1 Rank stocks here.SkyWest, founded in 1972, is based in St. George and operates regional jets for major U.S. airlines. SKYW is the holding company for SkyWest Airlines, SkyWest Charter and SkyWest Leasing, an aircraft leasing company.SKYW has an impressive earnings surprise track record, having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 17.1%. The Zacks Consensus Estimate for second-quarter 2025 earnings has been revised 1.30% upward in the past 60 days. SKYW’s second-quarter 2025 earnings are expected to grow 28.5% year over year.United Airlines has an Earnings ESP of +2.16% and a Zacks Rank #3 at present. UAL is scheduled to report second-quarter 2025 earnings on July 16.The Zacks Consensus Estimate for second-quarter 2025 earnings has been revised 6.45% downward in the past 60 days. UAL’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.34%.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Zacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Airlines Holdings Inc (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks