10:57 AM EDT, 07/11/2025 (MT Newswires) -- Delta Air Lines' ( DAL ) strong premium revenue in Q2 is driving upside to the company's Q3 and full-year 2025 outlook, BofA Securities said in a Friday note.

The company reported its Q2 results Thursday and issued a Q3 outlook of $1.25 to $1.75 in adjusted earnings per share. Delta Air Lines ( DAL ) also restored its 2025 guidance, projecting adjusted EPS of $5.25 to $6.25.

Delta Air Lines' ( DAL ) Q2 premium cabin revenue grew by 4.7% while main cabin revenue declined by 5.5% and the gap continued to grow since Q4 2024, said BofA Securities. This could "differentiate" the company from its peers this earnings season, with less potential upside expected for airlines with more main cabin revenue growth exposure, according to BofA Securities.

"Exposure to premium revenue streams has helped DAL be the pre-tax margin leader post-COVID," said the investment firm. BofA Securities raised its 2025 EPS estimate for the company by 4% to $5.55.

BofA Securities also increased its price target for Delta Air Lines ( DAL ) to $67 from $60, while maintaining a buy rating.

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