Delta Air Lines lifts outlook on ‘no signs of any let up’ in demand

Delta Air Lines Inc (NYSE: DAL) is in focus today after raising its guidance for the current financial quarter.

Delta Air Lines’ earnings guidance for Q2

The air carrier now forecasts its adjusted per-share earnings to fall between $2.25 to $2.50 in Q2. In an interview with CNBC this morning, CEO Ed Bastian said:

Delta Air Lines is scheduled to report its second-quarter financial results on July 13^th. At writing, its shares are up about 35% versus the start of the year.

Delta Air Lines raises outlook for free cash flow

Delta Air Lines now expects to earn $6.0 a share (adjusted) this year.

On Tuesday, it also raised its outlook for the full-year free cash flow from $2.0 billion to $3.0 billion. According to the Chief Executive:

The Atlanta-headquartered firm wants to generate about $10 billion in free cash flow between now and 2025. It resumed quarterly dividend earlier this month.

Is there any further upside in Delta Air Lines stock?

Delta Air Lines also raised its outlook for revenue per available seat mile this year to 18% versus up to 17% it had guided for earlier.

The airline stock is still down nearly 30% versus pre-pandemic. But CEO Bastian said on Tuesday:

He’s upbeat also on the trade-ups to more premium seats. Premium revenue is expected to make 35% of the total revenue this year.