Delta Air Lines (DAL) AI Stock Analysis

• Market Cap: $46.45B
• Dividend Yield: 0.95%
• Average Volume (3M): 7.79M
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.13
• 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): 1.71
• Shares Outstanding: 652,962,770
• 10 Day Avg. Volume: 8,829,473
• 30 Day Avg. Volume: 7,788,602
• PEG Ratio: -0.45
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 13.59
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 3.30
• Enterprise Value/Ebitda: 5.62
• 1Y Price Target: $75.94
• Price Target Upside: 6.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $77.00 ▲(8.24% Upside)

Delta Air Lines' strong financial performance and positive earnings call are the most significant factors driving the overall score. The company's robust revenue growth, profitability, and strategic debt reduction efforts position it well for continued success. While technical indicators suggest potential short-term volatility, the overall outlook remains positive, supported by favorable corporate events and valuation metrics.

Positive Factors

Revenue Growth

The consistent revenue growth indicates Delta's strong market position and ability to capture demand, supporting long-term business stability.

Debt Reduction

Strategic debt reduction enhances financial flexibility and reduces interest expenses, strengthening Delta's balance sheet for future growth.

Premium and Loyalty Growth

Growth in premium and loyalty segments boosts profitability and customer retention, reinforcing Delta's competitive advantage.

Negative Factors

Transatlantic Market Challenges

Weakness in the transatlantic market could limit revenue growth and impact Delta's international expansion efforts.

Government Shutdown Impact

The government shutdown poses a risk to profitability and operational stability, potentially affecting future financial performance.

Leverage Concerns

While debt reduction efforts are underway, existing leverage levels could constrain financial flexibility and increase risk exposure.

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

Delta Air Lines has shown a strong recovery with significant revenue and profit growth, improved margins, and better financial stability. The income statement reflects robust growth and profitability, while the balance sheet indicates improved financial health despite some leverage concerns. Strong cash flow generation further supports the company's financial performance.

Income Statement

Delta Air Lines shows a strong recovery with a consistent increase in revenue over the years, highlighted by a TTM revenue growth rate of 1.61%. The gross profit margin has improved significantly from negative figures in 2020 to a healthy 26.08% in the TTM. The net profit margin also shows a positive trend, reaching 7.36% in the TTM. EBIT and EBITDA margins have improved, indicating better operational efficiency. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The balance sheet shows a reduction in the debt-to-equity ratio from a high of 26.27 in 2020 to 1.15 in the TTM, indicating improved financial stability. Return on equity has increased to 27.64% in the TTM, showcasing strong profitability. However, the equity ratio remains a concern, suggesting potential leverage risks. Overall, the balance sheet reflects improved financial health but with some leverage concerns.

Cash Flow

Delta's cash flow statement indicates a strong recovery in free cash flow, with a growth rate of 31.78% in the TTM. The operating cash flow to net income ratio is stable, reflecting efficient cash generation relative to earnings. The free cash flow to net income ratio has improved, indicating better cash conversion. Overall, the cash flow statement shows a positive trajectory with strong cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.92B	61.64B	58.05B	50.58B	29.90B	17.09B
Gross Profit	16.41B	16.56B	15.52B	11.16B	2.13B	-4.37B
EBITDA	9.64B	7.92B	8.78B	5.05B	3.67B	-12.35B
Net Income	4.63B	3.46B	4.61B	1.32B	280.00M	-12.38B
Balance Sheet
Total Assets	79.62B	75.37B	73.64B	72.28B	72.47B	72.00B
Cash, Cash Equivalents and Short-Term Investments	3.79B	3.07B	3.87B	6.53B	11.32B	14.10B
Total Debt	21.72B	22.77B	27.28B	30.61B	34.68B	35.55B
Total Liabilities	60.80B	60.08B	62.54B	65.71B	68.57B	70.46B
Stockholders Equity	18.82B	15.29B	11.11B	6.58B	3.89B	1.53B
Cash Flow
Free Cash Flow	3.07B	2.88B	1.14B	-2.00M	16.00M	-5.69B
Operating Cash Flow	7.98B	8.03B	6.46B	6.36B	3.26B	-3.79B
Investing Cash Flow	-4.63B	-3.74B	-3.15B	-6.92B	-897.00M	-9.24B
Financing Cash Flow	-3.66B	-4.26B	-3.39B	-4.54B	-3.85B	19.36B

Delta Air Lines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 71.14 is above the 20-day moving average (MA) of 65.54, above the 50-day MA of 61.57, and above the 200-day MA of 53.64, indicating a bullish trend. The MACD of 2.97 indicates Negative momentum. The RSI at 66.01 is Neutral, neither overbought nor oversold. The STOCH value of 77.88 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
DAL	80 Outperform	$46.45B	10.03	28.52%	0.95%	4.33%	-1.58%
UAL	74 Outperform	$36.41B	11.05	25.59%	―	4.24%	20.29%
LTM	67 Neutral	$15.21B	12.73	135.74%	3.52%	6.81%	58.22%
LUV	66 Neutral	$21.81B	64.26	4.22%	1.71%	0.65%	―
AAL	64 Neutral	$10.55B	18.65	―	―	1.27%	118.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALK	54 Neutral	$6.08B	41.12	3.53%	―	31.50%	-49.15%

Delta Air Lines Corporate Events

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.

Delta Air Lines Amends Credit Agreement with Barclays

On September 30, 2025, Delta Air Lines and its subsidiary SkyMiles IP Ltd. amended their credit agreement with Barclays Bank. The amendment refinances existing term loans, extends the maturity date to October 20, 2028, reduces amortization payments, and introduces a prepayment premium, aiming to improve financial flexibility and reduce costs.

Delta Air Lines Reaffirms 2025 Earnings Outlook

On September 11, 2025, Delta Air Lines executives presented at the Morgan Stanley Laguna Conference, reaffirming their earnings outlook for the September quarter and full year 2025. Delta anticipates a total revenue growth of 2 to 4 percent over the previous year for the September quarter, driven by strong operational performance, improved demand trends, and industry supply rationalization. This growth is expected to place Delta in the upper half of its initial guidance range, indicating a positive impact on its market positioning.