Delta Air Lines Inc. issued a new profit target for this year after pulling the goal three months ago, in a sign that demand is bouncing back from the initial shock over US President Donald Trump’s tariff war.

The airline’s upbeat outlook for the year has been dimmed by economic turbulence in the U.S. that made people hesitant to book flights.

Delta's revenue from premium seats like business class rose 6% in the first half of the year to $10.6 billion, while main cabin economy ticket revenue dropped 4% to $11.7 billion. The carrier, the most profitable U.S. airline, has said for years that its share of sales from high-end seats and its lucrative loyalty program has been growing.

Stocks are off to a sluggish start on Wall Street, while Delta Air Lines led a rally in airline stocks after releasing a solid outlook for the rest of 2025.

After withdrawing its outlook in April, Delta is again forecasting a profit—though at a significantly lower level than originally projected.

Consumers are showing renewed interest in travel, according to Delta Air Lines. Why it matters: It's a positive sign for the broader economy — several airlines, including Delta, had warned in March that travel spending was flagging.