Investing.com– Analysts at UBS raised their price target for Delta Air Lines Inc (NYSE:), citing strong revenue per available seat mile (RASM) growth and improving revenue estimates for 2025 and 2026.

UBS raised the target to $90 from $88 and maintained a “Buy” rating for the stock.

Delta’s strong fourth quarter results for 2024 exceeded market expectations, with sequential RASM growth accelerating across all regions, led by Asia-Pacific and Atlantic.

UBS highlighted Delta’s diverse network and premium travel focus as factors driving its growth. Premium sales rose 8% in the fourth quarter, outpacing 2% growth in the main cabin, reflecting continued strength in higher-margin segments.

For 2025, Delta management is guiding earnings per share (EPS) to at least $7.35. UBS expects an increase in this guidance, projecting $7.73 in EPS for the year.

Analysts believe that primary cabin revenues may improve further as the year progresses, given the relatively easy year-over-year comparisons in the second half. Cost management also remains a positive factor, with CASM-ex (cost per available seat mile, excluding fuel) expected to ease through efficiency gains.

UBS maintained its strong stance on Delta, stressing that the airline is well-positioned to take advantage of strong air travel demand and premium trends. With a favorable revenue outlook and disciplined cost management, Delta is set for continued revenue growth, supporting a higher price target, analysts said.