Delta loses shine after warning of falling travel demand, but still industry leader

Published
21 Feb 25
Updated
10 Jul 25
PittTheYounger's Fair Value
US$59.84
3.1% overvalued intrinsic discount
10 Jul
US$61.69
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1Y
49.1%
7D
2.4%

Author's Valuation

US$59.8

3.1% overvalued intrinsic discount

PittTheYounger's Fair Value

Shared on10 Jul 25
Fair value Increased 22%

Wowsers! With today's trading update on Q2, Delta has smashed all expectations: In a time of year when many others are struggling to turn a profit, reaping the bulk of their earnings over the summer and the Holidays towards the end of the year, the guys from Atlanta achieved a whopping 2.7 cents of gross profit per available seat mile (with total revenue per ASM at 21.4 cents and total cost per ASM at 18.7 cents).

Shared on10 Apr 25
Fair value Decreased 8.33%

PittTheYounger made no meaningful changes to valuation assumptions.

Shared on12 Mar 25
Fair value Decreased 21%

PittTheYounger has decreased revenue growth from 4.0% to 2.0%, decreased future PE multiple from 14.0x to 12.0x and increased discount rate from 10.0% to 11.0%.