Raymond James cut its rating on Delta Air Lines ahead of its second-quarter earnings report, mirroring a similar downgrade for JetBlue. The firm highlighted emerging margin pressures and questioned the sustainability of recent revenue trends as key drivers of the rating change.
Raymond James lowered its rating on Delta Air Lines to a neutral stance, citing a more cautious earnings outlook for the second quarter. The downgrade was issued alongside a similar cut for JetBlue, signaling broader analyst skepticism in the U.S. airline sector.
The firm flagged emerging margin pressures as a primary risk, pointing to cost headwinds that could erode profitability. It also questioned the sustainability of recent revenue momentum, suggesting yields may underperform prior expectations in Q2.
The rating cut has the potential to weigh on Delta shares as investors recalibrate valuations ahead of the earnings release. Delta is set to report second-quarter results in the coming weeks, providing a direct test of the revised outlook.
