Delta Air Lines reported first-quarter earnings on April 8.
Analyst firms Argus and TD Cowen raised their price targets on April 9 while maintaining Buy ratings. Analysts cited confidence in the airline’s ability to navigate significant fuel cost pressures. These expenses previously led the company to issue cautious guidance for the second quarter.
The stock rallied earlier in the week due to the Q1 earnings beat. A concurrent drop in oil prices helped offset market concerns regarding the weaker Q2 profit forecast.
Delta’s strategy to manage rising fuel expenses includes reducing flight capacity. The company is also increasing baggage fees to protect profit margins.