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Delta Air Lines (DAL)
NYSE:DAL

Delta Air Lines (DAL) AI Stock Analysis

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Delta Air Lines

(NYSE:DAL)

Rating:80Outperform
Price Target:
$56.00
▲(13.89%Upside)
Delta Air Lines is well-positioned within the airline industry, supported by strong financial performance and strategic initiatives. While technical indicators suggest upward momentum, challenges in the domestic market and moderate leverage warrant caution. Overall, Delta's strategic focus on international and premium segments, alongside effective cost management, supports a positive outlook.
Positive Factors
Brand and Customer Satisfaction
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.
Negative Factors
Macroeconomic Concerns
Macroeconomic weakness could curb discretionary spending on travel, with rising unemployment and higher cost of living leading to households cutting back on travel spending.
Revenue and Earnings Challenges
Pricing is expected to remain pressured with yields down over 5% for the remainder of the year, impacting Delta's financial performance.

Delta Air Lines (DAL) vs. SPDR S&P 500 ETF (SPY)

Delta Air Lines Business Overview & Revenue Model

Company DescriptionDelta 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 MoneyDelta 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 Key Performance Indicators (KPIs)

Any
Any
Passenger Miles
Passenger Miles
Measures the total distance flown by paying passengers, indicating demand for flights and overall airline capacity utilization.
Chart InsightsDelta Air Lines has shown a strong recovery in passenger miles, nearing pre-pandemic levels by mid-2024. This aligns with the company's focus on international and premium segments, which have demonstrated resilience amid domestic demand challenges. Despite macroeconomic uncertainties and flat capacity growth planned for the second half of 2025, Delta's strategic emphasis on premium and international markets could sustain its momentum. The recent earnings call highlights record revenue and strong cash flow, suggesting a robust operational footing despite domestic market softness.
Data provided by:Main Street Data

Delta Air Lines Earnings Call Summary

Earnings Call Date:Apr 09, 2025
(Q1-2025)
|
% Change Since: 37.46%|
Next Earnings Date:Jul 10, 2025
Earnings Call Sentiment Neutral
Delta Air Lines reported strong revenue growth and operational performance, with significant achievements in premium and loyalty segments. However, the company faces challenges due to macroeconomic uncertainties and demand softness in the domestic market, particularly in the Main Cabin. While international revenue shows resilience, the uncertain economic environment and flat pre-tax earnings present concerns.
Q1-2025 Updates
Positive Updates
Record Revenue Achievement
Delta Air Lines reported a 3.3% increase in revenue compared to the previous year, setting a new record for the March quarter.
Strong Free Cash Flow
The company delivered free cash flow of $1.3 billion and achieved a double-digit return on invested capital.
Operational Excellence
Delta reported leading on-time performance and system completion factor among network peers.
Recognition and Profit Sharing
Delta celebrated a $1.4 billion profit-sharing payout to employees and was recognized by Fortune Magazine as the #15 company on their list of the 100 best companies to work for.
Premium and Loyalty Segment Growth
Premium and loyalty revenue were both up approximately 7% year-over-year, with remuneration from American Express growing 13% to $2 billion.
Geographic Revenue Growth
International revenue grew by 7%, with strong performances in Pacific (16% increase) and Transatlantic (5% increase) regions.
Negative Updates
Flat Pre-Tax Earnings
Delta posted pre-tax earnings of $382 million, or $0.46 per share, which is flat compared to last year.
Macroeconomic Challenges
Delta faced a challenging macro environment, with demand softness in the domestic Main Cabin and both consumer and corporate travel.
Domestic Revenue Impact
Domestic revenue grew only 1% due to demand softness in the Main Cabin.
Uncertain Economic Outlook
Due to broad economic uncertainty, Delta did not provide an updated full-year outlook.
Capacity and Cost Management
Delta plans to keep second-half capacity growth flat over last year and is aggressively managing costs due to lower demand.
Off-Peak Demand Weakness
There is persistent demand softness in Main Cabin during off-peak times, affecting revenue.
Company Guidance
During Delta Air Lines' March Quarter 2025 Conference Call, CEO Ed Bastian discussed the company's financial performance and strategic direction. Delta reported pre-tax earnings of $382 million, or $0.46 per share, on revenue that was 3.3% higher than the previous year, marking a record for the March quarter. The operating margin stood at approximately 5%, and the company generated $1.3 billion in free cash flow. Despite a challenging macro environment, particularly in the domestic Main Cabin segment, Delta's international and premium segments showed resilience. The company plans to maintain flat capacity growth in the second half of the year and expects double-digit operating margins with pre-tax income between $1.5 billion and $2 billion for the June quarter. Although Delta is not providing a full-year outlook due to economic uncertainty, it anticipates strong profitability and cash flow in 2025.

Delta Air Lines Financial Statement Overview

Summary
Delta Air Lines has demonstrated strong financial performance with robust revenue growth, healthy profitability, and efficient cash flow management. However, the balance sheet shows moderate leverage that needs careful monitoring.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
61.93B61.64B58.05B50.58B29.90B17.09B
Gross Profit
15.46B15.17B14.13B10.60B2.13B-4.37B
EBIT
5.95B6.00B5.52B3.66B1.89B-12.47B
EBITDA
7.47B7.92B8.78B5.05B3.67B-12.35B
Net Income Common Stockholders
3.66B3.46B4.61B1.32B280.00M-12.38B
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.88B3.07B3.87B6.53B11.32B14.10B
Total Assets
64.53B75.37B73.64B72.28B72.47B72.05B
Total Debt
17.25B22.77B27.28B30.61B34.62B35.55B
Net Debt
14.37B19.70B24.54B27.34B26.68B27.24B
Total Liabilities
49.09B60.08B62.54B65.82B68.84B70.70B
Stockholders Equity
15.44B15.29B11.11B6.46B3.63B1.35B
Cash FlowFree Cash Flow
2.82B2.88B1.14B-2.00M16.00M-5.69B
Operating Cash Flow
8.00B8.03B6.46B6.36B3.26B-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-3.85B19.36B

Delta Air Lines Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price49.17
Price Trends
50DMA
45.24
Positive
100DMA
51.75
Negative
200DMA
53.59
Negative
Market Momentum
MACD
1.03
Positive
RSI
52.47
Neutral
STOCH
70.45
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 49.17 is below the 20-day moving average (MA) of 49.53, above the 50-day MA of 45.24, and below the 200-day MA of 53.59, indicating a neutral trend. The MACD of 1.03 indicates Positive momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 70.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DAL.

Delta Air Lines Risk Analysis

Delta Air Lines disclosed 24 risk factors in its most recent earnings report. Delta Air Lines reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Delta Air Lines Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DADAL
80
Outperform
$33.74B9.1627.52%1.17%4.91%-27.21%
UAUAL
76
Outperform
$27.17B7.5833.57%5.31%35.95%
74
Outperform
$29.70B18.4122.41%1.46%5.39%-15.92%
PAPAC
73
Outperform
$11.93B25.6136.66%4.62%-2.56%-14.94%
LULUV
68
Neutral
$19.58B40.805.63%2.14%3.26%27.77%
66
Neutral
$4.49B12.345.40%248.65%4.13%-12.33%
AAAAL
61
Neutral
$7.81B13.67-21.27%1.92%36.07%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DAL
Delta Air Lines
49.17
-0.86
-1.72%
PAC
Grupo Aeroportuario del Pacifico
237.40
85.82
56.62%
RYAAY
Ryanair Holdings
57.41
10.10
21.35%
LUV
Southwest Airlines
34.36
6.58
23.69%
UAL
United Airlines Holdings
78.63
25.70
48.55%
AAL
American Airlines
11.06
-0.44
-3.83%

Delta Air Lines Corporate Events

Private Placements and Financing
Delta Air Lines Completes $2 Billion Notes Offering
Positive
Jun 10, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Delta Air Lines Acquires Stake in WestJet
Positive
May 9, 2025

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.

Stock Buyback
Delta Air Lines Announces $1 Billion Share Buyback
Positive
May 1, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.