Delta Air Lines (DAL) AI Stock Analysis

• Market Cap: $34.74B
• Dividend Yield: 1.25%
• Average Volume (3M): 10.94M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.23
• Revenue Growth: 3.01%
• EPS Growth: -0.90%
• Country: US
• Employees: 100,000
• Sector: Industrials
• Sector Strength: 88
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 2.10
• Shares Outstanding: 652,948,400
• 10 Day Avg. Volume: 7,991,519
• 30 Day Avg. Volume: 10,940,040
• PEG Ratio: 0.37
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.63
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 4.57
• Enterprise Value/Ebitda: 1.56
• 1Y Price Target: $67.88
• Price Target Upside: 32.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $58.00 ▲(13.39%Upside)

Delta Air Lines is well-positioned for future growth, with strong financial performance and a positive earnings outlook. While technical indicators show some short-term weakness, the stock's valuation suggests it's undervalued, presenting an opportunity for investors. Ongoing financial stability and strategic focus on premium segments bolster its growth potential.

Positive Factors

Analyst Recommendation

Analyst maintains a Buy rating on shares of Delta Air Lines and raises the price target to $66.

Financial Performance

With $3-4B of free cash flow this year, DAL’s 7.5% free cash flow yield is nearly double its next closest competitor.

Profitability

Industry capacity rationalization efforts are bolstering a stronger profitability outlook for Delta Air Lines.

Revenue Growth

Management sounded positive on the re-acceleration of third-party MRO revenue.

Negative Factors

Market Conditions

Delta's exposure to higher income consumers and overall revenue diversity are enabling it to withstand the weakness in main cabin pricing.

Market Demand

Management believes that demand peaks are becoming less extreme and demand during shoulder periods is strengthening, creating a stable demand environment for the industry.

Delta Air Lines Business Overview & Revenue Model

Company Description

Delta Air Lines, Inc., headquartered in Atlanta, Georgia, is one of the major airlines in the United States and a leader in the global aviation industry. The company operates across various sectors including passenger airlines, cargo services, and aviation maintenance, repair, and overhaul (MRO). Delta offers a wide range of services, including scheduled air transportation for passengers and cargo, as well as ancillary services such as in-flight entertainment, catering, and airport lounge access.

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 exhibits strong financial performance with robust revenue and profit growth post-pandemic, effective cost management, and improved debt metrics. The company's healthy cash flow generation is countered by a high reliance on debt and ongoing capital expenditures, which may pose risks in adverse conditions.

Income Statement

Delta Air Lines shows strong revenue growth with a 6.6% increase from 2023 to TTM 2025, and a substantial improvement from the pandemic-impacted 2020. The company maintains solid profitability, evident in its TTM gross profit margin of 23.9% and net profit margin of 7.2%. The EBIT and EBITDA margins are robust at 9.3% and 11.5% respectively, indicating effective cost management. However, the slight decrease in EBIT margin from 2024 to TTM 2025 highlights potential cost pressures.

Balance Sheet

Delta's balance sheet reflects a strong recovery with a solid equity position, as indicated by a significant increase in stockholders' equity from 2021 to TTM 2025. The debt-to-equity ratio has improved to 0.91 in TTM 2025, showing effective debt management. Return on Equity (ROE) at 25.7% indicates high profitability. However, the equity ratio of 22.2% suggests a relatively high reliance on debt financing, posing potential risks in volatile economic conditions.

Cash Flow

The cash flow statement highlights a positive trend in free cash flow, with a substantial growth rate of 65.2% from 2024 to TTM 2025, driven by improved operating cash flows. The operating cash flow to net income ratio of 1.65 in TTM 2025 demonstrates efficient cash generation relative to earnings. Nonetheless, high capital expenditures and negative investing cash flows suggest ongoing investments in business operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.64B	58.05B	50.58B	29.90B	17.09B
Gross Profit	16.56B	15.52B	11.16B	2.13B	-4.37B
EBITDA	7.92B	8.78B	5.05B	3.67B	-12.35B
Net Income	3.46B	4.61B	1.32B	280.00M	-12.38B
Balance Sheet
Total Assets	75.37B	73.64B	72.28B	72.47B	72.05B
Cash, Cash Equivalents and Short-Term Investments	3.07B	3.87B	6.53B	11.32B	14.10B
Total Debt	22.77B	27.28B	30.61B	34.62B	35.55B
Total Liabilities	60.08B	62.54B	65.82B	68.84B	70.70B
Stockholders Equity	15.29B	11.11B	6.46B	3.63B	1.35B
Cash Flow
Free Cash Flow	2.88B	1.14B	-2.00M	16.00M	-5.69B
Operating Cash Flow	8.03B	6.46B	6.36B	3.26B	-3.79B
Investing Cash Flow	-3.74B	-3.15B	-6.92B	-897.00M	-9.24B
Financing Cash Flow	-4.26B	-3.39B	-4.54B	-3.85B	19.36B

Delta Air Lines Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAL, the sentiment is Negative. The current price of 51.15 is below the 20-day moving average (MA) of 54.43, above the 50-day MA of 51.05, and below the 200-day MA of 54.51, indicating a neutral trend. The MACD of 0.70 indicates Positive momentum. The RSI at 41.99 is Neutral, neither overbought nor oversold. The STOCH value of 8.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DAL.

Delta Air Lines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RYAAY	82 Outperform	$31.37B	14.73	27.12%	1.36%	10.61%	37.32%
UAL	80 Outperform	$27.38B	8.47	27.70%	―	4.23%	13.13%
DAL	76 Outperform	$34.74B	7.72	30.07%	1.25%	3.01%	-0.90%
PAC	73 Outperform	$11.54B	24.74	47.69%	5.03%	7.45%	-13.53%
Sector *	71 Outperform	¥270.65B	14.28	8.44%	2.84%	6.34%	11.66%
AAL	59 Neutral	$7.58B	14.77	-21.27%	―	1.50%	―
LUV	49 Neutral	$16.24B	46.51	4.30%	2.42%	1.64%	284.24%

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.