Bernstein: Delta dip is ‘noise’; hold DAL at $93 target

Delta Air Lines reported fiscal second-quarter earnings of $1.56 per share on $17.67 billion in revenue, above analyst forecasts of $1.48 and $17.53 billion. The stock opened lower Friday despite the beat.

The early sell-off came after a roughly 25% year-to-date gain and while the shares traded near record levels, a pattern often seen when investors trim positions after positive results.

Bernstein analyst David Vernon called the dip “noise” and recommended holding the shares. Bernstein keeps an Outperform rating on Delta with a $93 price target. The firm expects unit revenue to accelerate in the third quarter and projects fourth-quarter earnings could beat consensus by as much as 39%.

Vernon highlighted Delta’s expanded premium-cabin segmentation, which raises average fares from customers who pay for additional amenities. That revenue stream helps offset lower fares in economy cabins and supports overall unit revenue.

Company management cited demand related to the 2026 FIFA World Cup as a contributor to the quarter. Delta currently returns cash to shareholders through a dividend that yields about 1%.

Bernstein’s $93 target is below the broader Wall Street mean price target near $102 and the market consensus Buy rating, which implies other analysts expect further upside over the next 12 months.

Investors will watch unit revenue trends and changes in fare mix in coming quarters to evaluate whether management’s guidance holds amid regional conflicts and oil-price volatility.