B Of A Securities analyst Andrew G. Didora revised estimates for Delta Air Lines, Inc. ( DAL ) following its first-quarter FY25 results reported on Wednesday.

Delta reported operating revenue growth of 2% year-over-year to $14.04 billion, beating the consensus of $13.02 billion. Adjusted EPS was $0.46 (+2% YoY), beating the consensus of $0.38.

The company stated that it is not reaffirming its full-year 2025 financial guidance and plans to provide an update later in the year as market visibility improves.

The analyst notes that the company has guided for flat capacity in the second half of the year, which is down from prior expectations of growth of nearly 4%.

Diadora lowered the second-quarter revenue growth forecast to the low end of Delta's projected -2% to +2% range and is carrying that run rate through year-end.

Notably, after the January earnings call, the analyst predicted second-quarter revenue growth of 7.7% and a full-year forecast of +8.2%.

At current fuel prices and with unit costs up 2.5%, Diadora cut the 2025 EPS estimate to $5.20 from $6.40 and slashed EPS estimates for 2026 to $5.94 (from $7.40) and 2027 to $6.35 (from $7.93).

The analyst writes that Delta's cabin segmentation strategy, enhanced product offerings, profitable loyalty program, and expected free cash flow of $1.0 billion in 2025 (based on revised estimates) position it to emerge stronger than its peers.

Diadora maintained the price forecast at $56 with a Buy rating.

Investors can gain exposure to the stock via the U.S. Global Jets ETF ( JETS ) and the Defiance Hotel, Airline, and Cruise ETF .

Price Action: DAL shares are down 11.4% at $39.22 at the last check on Thursday.

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