Delta Air Lines: Strong Performance and Promising Outlook Justify Buy Rating

Analyst Ravi Shanker from Morgan Stanley maintained a Buy rating on Delta Air Lines and keeping the price target at $90.00.

Ravi Shanker has given his Buy rating due to a combination of factors that highlight Delta Air Lines’ strong performance and promising outlook. The company reported a robust third quarter, surpassing expectations and providing an optimistic forecast for the fourth quarter. This positive trend is expected to extend into 2026, driven by a notable increase in Main Cabin demand, which was further accelerated by a resurgence in corporate travel and strong international travel during the shoulder season.
Management’s confidence in the sustainability of these trends, despite potential disruptions like government shutdowns, adds to the positive sentiment. The company has also seen significant growth in premium segments, with the potential for premium revenues to surpass Main Cabin revenues by 2026. These factors, combined with manageable cost pressures, contribute to the overall positive outlook for Delta Air Lines, justifying the Buy rating.

According to TipRanks, Shanker is an analyst with an average return of -2.3% and a 45.31% success rate. Shanker covers the Industrials sector, focusing on stocks such as ArcBest, Alaska Air, and Allegiant Travel Company.

In another report released today, Bernstein also maintained a Buy rating on the stock with a $74.00 price target.