Delta Air Lines (DAL) AI Stock Analysis

• Market Cap: $44.07B
• Dividend Yield: 0.96%
• Average Volume (3M): 6.75M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 1.18
• Revenue Growth: 4.33%
• EPS Growth: -1.58%
• Country: US
• Employees: 100,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 1.55
• Shares Outstanding: 652,962,770
• 10 Day Avg. Volume: 8,505,004
• 30 Day Avg. Volume: 6,750,348
• PEG Ratio: 0.21
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 11.71
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 3.86
• Enterprise Value/Ebitda: 6.23
• 1Y Price Target: $83.50
• Price Target Upside: 22.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 7.22
• Revenue Forecast (FY): $62.35B

• Rating: 70 Outperform
• Price Target: $74.00 ▲(8.89% Upside)

Score is driven primarily by solid financial performance (earnings/cash-flow recovery and reduced leverage) and a favorable valuation (low P/E). Earnings-call guidance adds support with a clear 2026 growth and deleveraging outlook, while the main offset is mixed technical momentum with the stock below its 20-day average and softer oscillator readings.

Positive Factors

Free Cash Flow Generation

Delta's record FCF provides durable internal funding for debt reduction, fleet renewal and shareholder returns. Consistent multi-year cash generation lowers refinancing risk, enables disciplined capex funding and preserves flexibility to absorb airline cyclical shocks.

Revenue Diversification & Loyalty

A broad mix—premium fares, cargo, MRO and loyalty/co-brand income—reduces dependence on commoditized economy fares. Structural diversity and strong co-brand/remuneration support higher-margin, more stable cashflows and resilience to shifts in leisure vs. corporate travel demand.

Fleet Modernization

Large widebody and 787 orders refresh long-haul fleet, promising material fuel and cargo efficiency gains and cited margin advantages. Staged deliveries with long-term financing improve unit economics over time, strengthening international capacity and competitive positioning.

Negative Factors

Sizable Absolute Debt

While leverage improved since 2020, sizeable absolute debt limits strategic flexibility. Given airline cyclicality and modest near-term coverage metrics, material debt balances can slow deleveraging, constrain buybacks/dividends and raise refinancing sensitivity in downturns.

Main‑Cabin Demand Lagging

Structural underperformance in economy-class demand means revenue growth is concentrated in premium segments. If broad-based main-cabin recovery stalls, Delta's capacity plans and yield assumptions may underdeliver, limiting sustainable revenue expansion and margin upside.

Nonfuel Cost and Margin Volatility

Rising nonfuel unit costs and year-over-year gross margin decline signal persistent cost pressures. Given labor, operational recovery needs and weather/regulatory shocks, margin volatility remains an enduring risk that can compress cashflow and slow leverage reduction.

Delta Air Lines Business Overview & Revenue Model

Company Description

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Minneapolis-St. Paul, Detroit, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Mexico City, London-Heathrow, Paris-Charles de Gaulle, and Seoul-Incheon. The company sells its tickets through various distribution channels, including delta.com and the Fly Delta app, reservations, online travel agencies, traditional brick and mortar, and other agencies. It also provides aircraft maintenance and engineering support, repair, and overhaul services; and vacation packages to third-party consumers, as well as aircraft charters, and management and programs. The company operates through a fleet of approximately 1,200 aircrafts. Delta Air Lines, Inc. was founded in 1924 and is based in Atlanta, Georgia.

How the Company Makes Money

Delta Air Lines generates revenue primarily through passenger ticket sales, which constitute the majority of its earnings. The airline offers various fare classes, including economy, premium economy, business, and first class, allowing it to cater to different customer segments. In addition to ticket sales, Delta earns significant revenue from ancillary services, such as baggage fees, seat selection fees, and in-flight services. The company also has a robust cargo division that contributes to its revenue by transporting freight and mail. Furthermore, Delta has established strategic partnerships and alliances, such as membership in the SkyTeam global airline alliance, which enhances its network connectivity and increases passenger traffic. Loyalty programs, notably the SkyMiles program, drive repeat business by rewarding frequent flyers, thereby boosting customer retention and revenue. Overall, these diverse revenue streams and strategic partnerships are critical to Delta's financial performance.

Delta Air Lines Financial Statement Overview

Summary

Strong recovery and scale-up in revenue and profitability with improving, consistently positive cash generation and better leverage trends. Offsetting factors are typical airline margin volatility (gross margin pressure in 2025) and still-meaningful absolute debt despite improved debt-to-equity.

Income Statement

Delta has demonstrated a strong post‑pandemic earnings recovery, with revenue rising from ~$17.1B (2020) to ~$63.4B (2025) and net income rebounding to ~$5.0B (2025). Profitability is solid for the industry, with 2025 net margin ~7.9% and stable operating profitability versus 2024, though gross margin declined in 2025 versus 2024, indicating some cost/price pressure. Revenue growth slowed meaningfully in 2024 (~6%) but accelerated sharply in 2025 (as reported), supporting the overall positive trajectory; the key watch item is margin volatility typical of airlines.

Balance Sheet

Leverage has improved materially since 2020–2022, with total debt down from ~$35.5B (2020) to ~$21.1B (2025) and debt-to-equity improving from very elevated levels (2020–2022) to ~1.0x in 2025. Equity has also rebuilt strongly (to ~$20.8B in 2025), which increases balance-sheet resilience. However, debt remains meaningful in absolute dollars and the business remains exposed to cyclicality, so the balance sheet is improved but not low-risk.

Cash Flow

Cash generation is healthy: operating cash flow increased from ~$6.4B (2022) to ~$8.3B (2025), and free cash flow improved to ~$3.8B (2025) after being near breakeven in 2022. Free cash flow also covered a meaningful portion of earnings in 2025 (about 46%), suggesting profits are reasonably cash-backed. The main weakness is that operating cash flow covers only about 30% of total debt in recent years, implying deleveraging capacity is good but not rapid without sustained strong cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	63.36B	61.64B	58.05B	50.58B	29.90B
Gross Profit	14.47B	16.56B	15.52B	11.16B	2.13B
EBITDA	8.03B	7.92B	8.78B	5.05B	3.67B
Net Income	5.00B	3.46B	4.61B	1.32B	280.00M
Balance Sheet
Total Assets	81.19B	75.37B	73.64B	72.28B	72.47B
Cash, Cash Equivalents and Short-Term Investments	4.31B	3.07B	3.87B	6.53B	11.32B
Total Debt	21.08B	22.77B	27.28B	30.61B	34.68B
Total Liabilities	60.43B	60.08B	62.54B	65.71B	68.57B
Stockholders Equity	20.75B	15.29B	11.11B	6.58B	3.89B
Cash Flow
Free Cash Flow	3.84B	2.88B	1.14B	-2.00M	16.00M
Operating Cash Flow	8.34B	8.03B	6.46B	6.36B	3.26B
Investing Cash Flow	-4.19B	-3.74B	-3.15B	-6.92B	-897.00M
Financing Cash Flow	-3.08B	-4.26B	-3.39B	-4.54B	-3.85B

Delta Air Lines Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 67.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAL, the sentiment is Neutral. The current price of 67.96 is below the 20-day moving average (MA) of 69.95, above the 50-day MA of 67.12, and above the 200-day MA of 56.73, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 44.63 is Neutral, neither overbought nor oversold. The STOCH value of 23.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DAL.

Delta Air Lines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTM	72 Outperform	$18.51B	15.31	135.74%	3.50%	6.81%	58.22%
DAL	70 Outperform	$44.07B	8.87	27.78%	0.96%	4.33%	-1.58%
UAL	68 Neutral	$34.89B	10.53	23.99%	―	4.24%	20.29%
LUV	66 Neutral	$21.74B	63.93	4.22%	1.73%	0.65%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALK	55 Neutral	$5.78B	56.89	2.36%	―	31.50%	-49.15%
AAL	50 Neutral	$9.62B	17.52	―	―	1.27%	118.64%

Delta Air Lines Corporate Events

Delta Air Lines signs major Airbus widebody fleet deal

On January 27, 2026, Delta Air Lines entered into a definitive agreement with Airbus to purchase 16 Airbus A330-900 and 15 Airbus A350-900 widebody aircraft, with options for up to 20 additional widebodies, with deliveries scheduled to begin in 2029. The new aircraft, powered by Rolls-Royce Trent 7000 and Trent XWB-84 EP engines, fit within Delta’s previously announced capital expenditure and capacity targets and are backed by long-term financing for a substantial portion of the purchase price, signaling a planned long-term expansion and modernization of its widebody fleet without altering its existing financial guidance.

The most recent analyst rating on (DAL) stock is a Buy with a $81.00 price target. To see the full list of analyst forecasts on Delta Air Lines stock, see the DAL Stock Forecast page.

Delta Air Lines Orders Boeing 787s, Posts Record Results

On January 12, 2026, Delta Air Lines agreed to purchase 30 Boeing 787-10 aircraft powered by GEnx engines, with options for 30 more, with deliveries starting in 2031; the order fits within the carrier’s existing capital expenditure and capacity plans and is backed by long-term financing, signaling a strategic long-haul fleet modernization that should support future efficiency and growth. Reporting its December-quarter and full-year 2025 results on January 13, 2026, Delta posted record annual revenue of $63.4 billion, GAAP pre-tax income of $6.2 billion, and free cash flow of $4.6 billion, highlighting a double-digit return on invested capital, strong co-brand and loyalty performance, disciplined non-fuel cost growth, and ongoing debt reduction, while positioning 2026 as another year of margin expansion and earnings growth supported by solid consumer and corporate travel demand and expanding high-margin revenue streams.

The most recent analyst rating on (DAL) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Delta Air Lines stock, see the DAL Stock Forecast page.

Delta Air Lines Announces Leadership Transition Plans

Delta Air Lines announced the upcoming retirement of its President, Glen W. Hauenstein, effective February 28, 2026, following a two-decade career of significant contributions to the company and the airline industry. Hauenstein played a vital role in expanding Delta’s global network, establishing its revenue premium, and positioning the airline as a leader in premium travel experiences. Joe Esposito, a long-time Delta veteran, will succeed Hauenstein as Executive Vice President – Chief Commercial Officer, overseeing key operational areas. The leadership transition marks a pivotal moment as Delta enters its second century, with significant implications for maintaining its position as an industry leader.

The most recent analyst rating on (DAL) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Delta Air Lines stock, see the DAL Stock Forecast page.

Delta Air Lines Discusses Demand at Morgan Stanley Conference

Delta Air Lines announced during a webcast fireside chat at the Morgan Stanley Global Consumer & Retail Conference on December 3, 2025, that demand remains healthy for the December quarter with strong trends expected for early 2026. Despite a temporary softening in November due to a government shutdown, which is anticipated to impact the company’s December quarter pre-tax profitability by approximately $200 million, travel bookings have returned to initial expectations.

The most recent analyst rating on (DAL) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on Delta Air Lines stock, see the DAL Stock Forecast page.