Delta Air Lines stock touches 52-week low at $37.29

Published 04/04/2025, 14:50
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In a challenging year for the aviation industry, Delta Air Lines Inc. (NYSE:DAL) stock has hit a 52-week low, dipping to $37.29. According to InvestingPro data, the stock’s technical indicators suggest oversold conditions, while trading at an attractive P/E ratio of 7.2x. The company, which has faced headwinds from fluctuating travel demand and operational costs, has seen its shares retreat significantly over the past year. Investors have been cautious, reflecting a broader concern in the market about the sector’s recovery trajectory. The stock has declined 35.86% year-to-date, though analysts maintain a strong buy consensus with upside potential. Despite current market sentiment, InvestingPro analysis suggests the stock is currently undervalued, with 12 additional exclusive insights available to subscribers through the comprehensive Pro Research Report.

In other recent news, Delta Air Lines announced a significant reduction in its profit guidance for the first quarter of 2025, citing decreased consumer spending amidst economic concerns. This announcement has had a ripple effect across the travel sector, with major companies like American Airlines (NASDAQ:AAL) and Southwest Airlines (NYSE:LUV) also revising their financial forecasts downward. Delta’s revised revenue growth expectations are now between 3% to 4%, down from the previously anticipated 7% to 9%. UBS has responded by lowering Delta’s stock price target from $90 to $77, although it maintains a Buy rating on the shares.

The airline has also updated its earnings per share guidance to a range of $0.30 to $0.50, falling short of the consensus estimate of $0.83. In addition to economic factors, Delta attributes part of its revenue shortfall to weather-related disruptions and temporary impacts from plane accidents. Notably, a Delta regional jet experienced a safety incident in February at Toronto’s Pearson (LON:PSON) Airport, which has been highlighted in a preliminary report by Canada’s Transportation Safety Board. Despite the challenging start to the year, Delta reports strong booking numbers for April and May, with robust trends in premium and international travel segments.

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