Delta Air Lines price target lowered to $63 by UBS on cautious demand outlook

Investing.com - UBS has lowered its price target on Delta Air Lines (NYSE:DAL) to $63.00 from $66.00 while maintaining a Buy rating on the stock. Currently trading at $50.86 with a market capitalization of $33.2 billion, Delta shares are trading at an attractive P/E ratio of 8.9x, according to InvestingPro data.

The adjustment reflects UBS’s "more cautious view on the pace of improvement in demand and RASM performance," according to the firm’s analysis.

UBS analyst Thomas Wadewitz specifically cited concerns about Delta’s performance in the second half of 2025 and into 2026, leading to modest reductions in earnings per share (EPS) estimates for these periods.

Revenue per available seat mile (RASM), a key airline industry metric measuring unit revenue performance, appears to be a particular focus of the revised outlook.

Despite the price target reduction, UBS continues to maintain its Buy rating on Delta Air Lines stock, suggesting the firm remains positive on the carrier’s overall investment potential despite near-term caution.

In other recent news, Delta Air Lines has seen a series of noteworthy developments. Jefferies has raised its price target for Delta Air Lines to $56, citing stable travel demand and improved earnings per share estimates for the second quarter. UBS has also upgraded Delta’s stock rating to Buy, increasing its price target to $66 due to anticipated recovery in corporate travel and strength in premium and international segments. Delta has warned of potential disruptions due to new tariffs on imported airplanes, which could impact its ability to purchase foreign-built planes, affecting millions of customers. Additionally, Delta received 47 Airbus aircraft from Canada, Germany, and France in 2023 and 2024, highlighting its reliance on international suppliers.

SkyWest (NASDAQ:SKYW) has announced plans to purchase 16 new E175 aircraft for Delta Air operations, with deliveries starting in 2027. This acquisition is part of SkyWest’s fleet modernization strategy under a multi-year contract with Delta. The new aircraft will replace existing CRJ900s and CRJ700s, enhancing SkyWest’s long-term fleet strategy. SkyWest has also secured firm delivery positions for 44 additional E175s from 2028 to 2032, along with purchase rights for 50 more E175s. These developments reflect ongoing efforts to strengthen partnerships and modernize fleets in the airline industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.