The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
March wasn't the best month for the S&P 500, with the index dropping 5.8%. It was a tough month all around, as 98 of the S&P 500 stocks finished the month down at least 10%, but two especially had a bad month: Delta Air Lines (DAL -0.29%) and United Airlines (UAL 0.36%).
The underlying cause of the price crash is the maximum uncertainty linked to Trump's tariff agenda and the trade war it caused. But investors should note that Delta's business remains firm, and the company is rebuilding shareholder value quickly.
Given the tariff-induced uncertainty, we assess DAL stock's investment worthiness at the current levels.
DAL had a strong Q1, beating top- and bottom-line estimates, but pulled full-year guidance due to economic uncertainty and tariff unpredictability. Despite a 32% stock decline, DAL's diversified revenue streams and high-income customer base should help it to weather economic turbulence. The airline plans to reduce capacity growth in H2 and aggressively manage costs, aiming to remain profitable and generate strong free cash flow.
Delta Air Lines' stock has faced significant pressure due to trade turmoil and eroded consumer confidence, impacting bookings and revenue growth. Despite challenges, Delta exceeded expectations in Q1, driven by strong performance in the Atlantic and Pacific markets and effective capacity management. The company has lowered its 2025 outlook due to macroeconomic uncertainties, with revised EBITDA and free cash flow estimates reflecting the ongoing market turmoil.
Able to exceed its Q1 expectations on Wednesday, Delta Air Lines (DAL) stock got a further boost as President Trump's decision to temporarily rescind reciprocal tariffs sent markets soaring.
The Q1 earnings season will be less about what companies earned in the first quarter of 2025 and more about sizing up the earnings impact of the emerging tariff and macroeconomic backdrop.
The Q1 earnings season will be less about what companies earned in the first quarter of 2025 and more about sizing up the earnings impact of the emerging tariff and macroeconomic backdrop.
Delta Air Lines saw year-over-year revenue growth of 3.3% in the March quarter as it dealt with “broad economic uncertainty.
Delta Air Lines, Inc. (NYSE:DAL ) Q1 2025 Earnings Conference Call April 9, 2025 10:00 AM ET Company Participants Julie Stewart - Vice President, IR Ed Bastian - CEO Glen Hauenstein - President Dan Janki - CFO Tim Mapes - SVP & Chief Communications Officer Peter Carter - EVP, External Affairs Conference Call Participants Conor Cunningham - Melius Research Andrew Didora - Bank of America Catherine O'Brien - Goldman Sachs Duane Pfennigwerth - Evercore ISI Mike Linenberg - Deutsche Bank Tom Fitzgerald - TD Cowen Savi Syth - Raymond James Tom Wadewitz - UBS Sheila Kahyaoglu - Jefferies David Vernon - Bernstein Scott Group - Wolfe Research Jamie Baker - JPMorgan Brandon Oglenski - Barclays Ravi Shanker - Morgan Stanley Mary Schlangenstein - Bloomberg News Alison Sider - Wall Street Journal Leslie Josephs - CNBC Operator Good morning, everyone, and welcome to the Delta Air Lines March Quarter 2025 Conference Call. My name is Matthew, and I'll be your coordinator.
Delta Air Lines withdrew its full-year profit forecast Wednesday and shelved some planned capacity hikes, pointing to a weakening demand outlook amid recession worries and worsening trade wars.