Delta Air Lines (DAL) AI Stock Analysis

• Market Cap: $32.99B
• Dividend Yield: 1.19%
• Average Volume (3M): 9.14M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.22
• Revenue Growth: 4.91%
• EPS Growth: -27.21%
• Country: US
• Employees: 100,000
• Sector: Industrials
• Sector Strength: 89
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 2.10
• Shares Outstanding: 652,953,060
• 10 Day Avg. Volume: 8,781,718
• 30 Day Avg. Volume: 9,141,849
• PEG Ratio: 9.35
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.91
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 3.19
• Enterprise Value/Ebitda: 1.48
• 1Y Price Target: $63.23
• Price Target Upside: 24.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 78 Outperform
• Price Target: $56.00 ▲(10.45%Upside)

Delta Air Lines shows strong financial performance, supported by robust cash flow and strategic initiatives. Technical indicators are mixed, but valuation metrics suggest potential for appreciation. Recent corporate actions further bolster financial stability and strategic positioning, while earnings call insights reflect resilience despite macroeconomic challenges.

Positive Factors

Brand Strength

Delta is the most trusted US airline brand with a global network and strong foothold in the premium segment.

Financial Stability

Delta's strong balance sheet, with gross leverage at 2.6x and over $30bn in unencumbered assets, provides financial stability.

Future Outlook

Delta's cabin segmentation catering to both premium and price sensitive customers, improved product, profitable loyalty program, free cash flow generation, and low net leverage should allow DAL to emerge stronger than other industry participants.

Negative Factors

Macroeconomic Uncertainty

Uncertainty in corporate and consumer sentiment, along with potential for further earnings downgrades, underpin a neutral stance.

Pricing Pressure

Pricing is expected to remain pressured with yields down over 5% for the remainder of the year, impacting Delta's financial performance.

Revenue Challenges

Revenue deceleration is expected through 1Q26, indicating a challenging environment for Delta Air Lines.

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 through multiple streams, primarily from passenger ticket sales, which account for the majority of its income. The company offers a variety of cabin classes, each with different pricing structures, allowing them to cater to different segments of travelers. In addition, Delta earns money from cargo services, transporting freight and mail across its global network. Ancillary services such as baggage fees, seat upgrades, and in-flight purchases contribute to their revenue. Furthermore, Delta has significant partnerships and alliances with other airlines through the SkyTeam alliance, which allows for code-sharing and extended route offerings, enhancing its market reach and revenue potential. The company's loyalty program, SkyMiles, also serves as a revenue source through partnerships with credit card companies and other commercial agreements.

Delta Air Lines Financial Statement Overview

Summary

Delta Air Lines has demonstrated robust financial performance with significant revenue growth, healthy profit margins, and strong cash flow generation. The balance sheet reflects manageable leverage, though debt levels require monitoring. Overall, Delta's financial stability and operational efficiency support a high score.

Income Statement

Delta Air Lines has demonstrated robust revenue growth over the past few years, with a significant recovery from the lows of 2020. The gross profit margin stands at approximately 24.1% (TTM), and the net profit margin at 5.9% indicates healthy profitability. The EBIT margin of 9.6% and EBITDA margin of 12.2% show strong operational efficiency. This consistent improvement and strong margin performance in a competitive industry justify a high score.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 1.07, indicating manageable leverage. The return on equity is impressive at 23.7%, reflecting efficient use of shareholder funds. The equity ratio of 20% suggests a reasonable degree of financial stability. While the reduction in total debt is positive, the relatively high debt levels remain a concern, balancing the overall score.

Cash Flow

Delta's cash flow performance is strong, with a free cash flow to net income ratio of 0.77, indicating effective conversion of income to cash. The operating cash flow to net income ratio of 2.18 suggests robust cash generation capabilities. The free cash flow growth rate reflects resilience and efficient capital management, although fluctuations in capital expenditures warrant caution.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.93B	61.64B	58.05B	50.58B	29.90B	17.09B
Gross Profit	15.46B	15.17B	14.13B	10.60B	2.13B	-4.37B
EBITDA	7.47B	7.92B	8.78B	5.05B	3.67B	-12.35B
Net Income	3.66B	3.46B	4.61B	1.32B	280.00M	-12.38B
Balance Sheet
Total Assets	77.34B	75.37B	73.64B	72.28B	72.47B	72.05B
Cash, Cash Equivalents and Short-Term Investments	3.71B	3.07B	3.87B	6.53B	11.32B	14.10B
Total Debt	22.28B	22.77B	27.28B	30.61B	34.62B	35.55B
Total Liabilities	61.90B	60.08B	62.54B	65.82B	68.84B	70.70B
Stockholders Equity	15.45B	15.29B	11.11B	6.46B	3.63B	1.35B
Cash Flow
Free Cash Flow	2.82B	2.88B	1.14B	-2.00M	16.00M	-5.69B
Operating Cash Flow	8.00B	8.03B	6.46B	6.36B	3.26B	-3.79B
Investing Cash Flow	-4.33B	-3.74B	-3.15B	-6.92B	-897.00M	-9.24B
Financing Cash Flow	-4.11B	-4.26B	-3.39B	-4.54B	-3.85B	19.36B

Delta Air Lines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAL, the sentiment is Positive. The current price of 50.7 is above the 20-day moving average (MA) of 49.42, above the 50-day MA of 48.69, and below the 200-day MA of 54.21, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 72.61 is Negative, neither overbought nor oversold. The STOCH value of 74.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAL.

Delta Air Lines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UAL	80 Outperform	$26.52B	7.31	33.57%	―	5.31%	35.95%
DAL	78 Outperform	$32.99B	8.96	30.07%	1.19%	4.91%	-27.21%
RYAAY	73 Outperform	$30.64B	18.73	22.41%	1.57%	3.12%	-13.82%
PAC	73 Outperform	$11.58B	24.78	36.66%	3.78%	-2.56%	-14.94%
LUV	68 Neutral	$19.36B	40.35	5.63%	2.12%	3.26%	27.77%
Sector *	67 Neutral	£2.80B	10.49	4.69%	217.64%	2.40%	-24.53%
AAL	64 Neutral	$7.64B	13.25	-21.27%	―	1.92%	36.07%

Delta Air Lines Corporate Events

Delta Air Lines Approves Amended Compensation Plan

On June 19, 2025, Delta Air Lines held its Annual Meeting of Shareholders where key decisions were made, including the approval of an amended Performance Compensation Plan. The plan, which extends until 2035, increases the number of shares authorized for issuance. Additionally, all fourteen director nominees were elected, executive compensation was approved, and Ernst & Young LLP was ratified as the company’s independent auditors for 2025. However, a shareholder proposal for written consent was not approved.

The most recent analyst rating on (DAL) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Delta Air Lines stock, see the DAL Stock Forecast page.

Delta Air Lines Completes $2 Billion Notes Offering

On June 5, 2025, Delta Air Lines completed a public offering of $2 billion in unsecured notes, divided equally between 4.950% Notes due 2028 and 5.250% Notes due 2030. The proceeds from this offering are intended to repay a portion of the company’s outstanding borrowings under the Payroll Support Program loan and for general corporate purposes. This financial maneuver is expected to impact Delta’s debt structure, offering flexibility in managing its obligations and potentially improving its financial stability.

The most recent analyst rating on (DAL) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Delta Air Lines stock, see the DAL Stock Forecast page.

Delta Air Lines Acquires Stake in WestJet

Delta Air Lines and Korean Air have announced their acquisition of minority stakes in WestJet, totaling 25% for $550 million, to strengthen partnerships and expand customer benefits. This strategic move aims to enhance connectivity between Canada, North America, Europe, and Asia, providing a seamless travel experience and aligning the airlines’ interests.

Delta Air Lines Announces $1 Billion Share Buyback

Delta Air Lines announced a $1 billion share repurchase program to be completed by June 30, 2028, aiming to return over $2 billion to shareholders in the next three years. This reflects the company’s commitment to reducing financial risk, reinvesting in the business, and increasing shareholder returns, supported by strong cash flow and high credit ratings.