Delta Air Lines (NYSE: DAL) has led the U.S. airline industry's post-pandemic recovery, returning to profitability in mid-2021 and moving steadily closer to pre-pandemic margin levels thereafter. Nevertheless, just three months ago, Delta stock sat well below where it traded in late 2020 -- when optimism about an air travel recovery was starting to take hold, but airlines were still losing billions of dollars every quarter.

Since then, Delta stock has surged more than 40%, thanks to moderating fuel prices and growing optimism about air travel demand. Even after this rally, the shares have substantial upside over the next couple of years, as the airline giant's earnings momentum continues to grow.

In conjunction with its investor day on Tuesday, Delta Air Lines raised its guidance for the second quarter and the full year.

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Source Fool.com