Delta Air Lines excels both in the air and the stock market this summer, and its Q2 earnings will unveil the peak travel period's performance.
The stock enjoyed a remarkable 15-day winning streak, rising 23% and continuing its upward trajectory, up 48% in 2023.
Robust travel demand, especially among Americans flying overseas, and lower fuel costs propelled Delta's record-breaking streak.
Delta's dividend reinstatement, after a suspension in 2020, provided additional support for the stock's winning streak last month.
The airline raised its Q2 earnings guidance, leading to further stock growth and high expectations for the future.
Record-breaking July Fourth weekend and strong market sentiments contribute to the potential of Delta's shares climbing higher.
Analysts expect significant earnings growth of 67% and revenue growth of 17% compared to the same period last year.
Initial concerns about demand and consumer softening over the summer have dissipated, boosting expectations.
The July Fourth travel period and the busiest air travel day on record indicate Delta may surpass expectations.
Delta's third-quarter earnings guidance becomes a crucial metric, with analysts expecting EPS of $2.07 per share.
Analysts anticipate Delta, with its international exposure, to perform well in the third quarter, given revenue beats and lower fuel costs.