Delta Air Lines (DAL)
NYSE:DAL
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Delta Air Lines
(NYSE:DAL)
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Rating:71Outperform
Price Target:
$73.00
▲(9.31% Upside)
Action:UpgradedDate:04/08/26
The score is driven primarily by solid financial performance (profitable operations, strong cash generation, and improved leverage) and supportive earnings guidance for 2026. Valuation is also a positive with a low P/E. Offsetting factors are mixed technical trends and ongoing airline-specific risks highlighted in guidance (cost pressures, demand mix, and operational recovery), with corporate events modestly positive but not additive beyond the call.
Positive Factors
Strong free cash flow generation
Consistent, high free cash flow materially improves Delta’s ability to deleverage, fund fleet modernization and return capital. A multi-year improvement from negative FCF in 2021–22 to sustained FCF supports strategic flexibility and resilience through industry cycles.
Negative Factors
Fuel and unit-cost volatility
Rising fuel and nonfuel unit costs directly pressure margins in an industry with thin structural margins. Persistent cost inflation or repeated fuel shocks can erode operating margin despite revenue growth, making profit sustainability sensitive to commodity swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, high free cash flow materially improves Delta’s ability to deleverage, fund fleet modernization and return capital. A multi-year improvement from negative FCF in 2021–22 to sustained FCF supports strategic flexibility and resilience through industry cycles.
Read all positive factors
Delta Air Lines (DAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.86B
Dividend Yield0.96%
Average Volume (3M)14.18M
Price to Earnings (P/E)9.0
Beta (1Y)1.14
Revenue Growth4.33%
EPS Growth-1.58%
CountryUS
Employees100,000
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)-0.44
Shares Outstanding653,130,740
10 Day Avg. Volume14,284,141
30 Day Avg. Volume14,184,118
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)2.17
Price to Sales (P/S)0.71
P/FCF Ratio11.71
Enterprise Value/Market Cap1.39
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit3.49
Enterprise Value/Ebitda6.17
Forecast
1Y Price Target
$80.53Price Target Upside20.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)6.08
Revenue Forecast (FY)$63.77B
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, ...
How the Company Makes Money
Delta primarily makes money by selling air transportation and related services. The largest revenue stream is passenger revenue from tickets across fare classes (e.g., economy and premium cabins) on domestic and international routes; pricing and r...
Delta Air Lines Key Performance Indicators (KPIs)
Any
Passenger Miles
Measures the total distance flown by paying passengers, indicating demand for flights and overall airline capacity utilization.
Measures the total distance flown by paying passengers, indicating demand for flights and overall airline capacity utilization.
Data provided by:
The Fly
The FlyDelta Air Lines Earnings Call Summary
Earnings Call Date:Jan 13, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 09, 2026
Earnings Call Sentiment Positive
The call emphasized strong full-year financials (record revenue, double-digit operating margin), exceptional free cash flow generation and loyalty/co-brand momentum, alongside bullish near-term demand signals and a clear 2026 outlook (EPS growth, revenue guidance, fleet investments). Notable challenges were discussed but framed as manageable: government shutdown impacts, short-term nonfuel CASM pressures, main-cabin demand not yet recovered, and operational recoverability work. On balance, the company's positive financial results, cash generation, diversified revenue mix, and constructive outlook outweigh the highlighted near-term operational and industry risks.Positive Updates
Record Full-Year Revenue and Profitability
Full-year 2025 record revenue of $58.3 billion, up 2.3% year over year; full-year operating margin of 10%; pretax income of $5.0 billion; full-year EPS of $5.82.
Negative Updates
Government Shutdown and FAA-Mandated Reductions
Government shutdown reduced pretax profit by $200 million (≈$0.25 per share) and FAA-mandated flight reductions (plus weather disruption) negatively impacted capacity and pushed nonfuel unit cost growth up by ~1 percentage point in the quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Revenue and Profitability
Full-year 2025 record revenue of $58.3 billion, up 2.3% year over year; full-year operating margin of 10%; pretax income of $5.0 billion; full-year EPS of $5.82.
Read all positive updates
Company Guidance
Delta guided that March revenue should rise 5–7% year‑over‑year with positive unit revenue, and set Q1 EPS at $0.50–$0.90 and an operating margin of 4.5–6% (both improving year‑over‑year). For full‑year 2026 management targets EPS of $6.50–$7.50 (≈20% growth at the midpoint), free cash flow of $3–$4 billion, and plans ~3% capacity growth (all new seat growth concentrated in premium cabins); CapEx is expected at ~$5.5 billion including ~50 aircraft deliveries. They expect nonfuel CASM to remain in the long‑term low single‑digit range (Q1 nonfuel CASM modestly above the full‑year average), positive unit revenue for 2026, and gross leverage to fall toward ~2.0x by year‑end (from 2.4x at 2025 close) with adjusted net debt ≈$14B and $35B of unencumbered assets, prioritizing debt reduction while enabling future shareholder returns.Delta Air Lines Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 65.18B | 63.36B | 61.64B | 58.05B | 50.58B | 29.90B |
| Gross Profit | 17.07B | 14.47B | 16.56B | 15.52B | 11.16B | 2.13B |
| EBITDA | 9.66B | 8.03B | 7.92B | 8.78B | 5.05B | 3.67B |
| Net Income | 4.48B | 5.00B | 3.46B | 4.61B | 1.32B | 280.00M |
Balance Sheet | ||||||
| Total Assets | 84.43B | 81.19B | 75.37B | 73.64B | 72.28B | 72.47B |
| Cash, Cash Equivalents and Short-Term Investments | 5.05B | 4.31B | 3.07B | 3.87B | 6.53B | 11.32B |
| Total Debt | 15.00B | 21.08B | 22.77B | 27.28B | 30.61B | 34.68B |
| Total Liabilities | 64.06B | 60.43B | 60.08B | 62.54B | 65.71B | 68.57B |
| Stockholders Equity | 20.38B | 20.75B | 15.29B | 11.11B | 6.58B | 3.89B |
Cash Flow | ||||||
| Free Cash Flow | 3.92B | 3.84B | 2.88B | 1.14B | -2.00M | 16.00M |
| Operating Cash Flow | 8.40B | 8.34B | 8.03B | 6.46B | 6.36B | 3.26B |
| Investing Cash Flow | -4.22B | -4.19B | -3.74B | -3.15B | -6.92B | -897.00M |
| Financing Cash Flow | -2.88B | -3.08B | -4.26B | -3.39B | -4.54B | -3.85B |
Delta Air Lines Technical Analysis
Positive
66.78
Price Trends
66.40
Positive
66.48
Positive
61.50
Positive
Market Momentum
0.35
Negative
53.68
Neutral
72.80
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 66.78 is above the 20-day moving average (MA) of 63.80, above the 50-day MA of 66.40, and above the 200-day MA of 61.50, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 72.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAL.
Delta Air Lines Risk Analysis
Delta Air Lines disclosed 2 risk factors in its most recent earnings report. Delta Air Lines reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Failure of the technology we use to perform effectively could have a material adverse effect on our business. Q3, 2024
Delta Air Lines Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $12.91B | 10.91 | 135.39% | 3.50% | 6.81% | 58.22% | |
71 Outperform | $42.86B | 8.99 | 27.63% | 0.96% | 4.33% | -1.58% | |
71 Outperform | $28.88B | 10.91 | 24.13% | ― | 4.24% | 20.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $18.61B | 50.61 | 5.33% | 1.73% | 0.65% | ― | |
50 Neutral | $4.23B | 69.18 | 2.47% | ― | 31.50% | -49.15% | |
46 Neutral | $7.14B | 25.57 | -2.76% | ― | 1.27% | 118.64% |
* Industrials Sector Average
DAL
Delta Air Lines
65.62
30.18
85.13%
ALK
Alaska Air
36.93
-4.08
-9.95%
LUV
Southwest Airlines
37.87
13.61
56.11%
UAL
United Airlines Holdings
89.29
33.14
59.02%
AAL
American Airlines
10.81
1.74
19.18%
LTM
LATAM Airlines Group SA Sponsored ADR
47.71
21.42
81.48%
Delta Air Lines Corporate Events
Business Operations and StrategyFinancial Disclosures
Delta Air Lines Raises Q1 Outlook, Highlights Financial Strength
Positive
Mar 17, 2026
On March 17, 2026, Delta executives presented at the J.P. Morgan Industrials Conference, highlighting that they had raised first-quarter 2026 revenue guidance on the back of accelerating consumer and corporate demand, with strength across main cab...
Business Operations and StrategyExecutive/Board Changes
Delta Air Lines Announces Major Executive Leadership Reshuffle
Positive
Mar 5, 2026
Delta Air Lines announced a wide-ranging leadership reshuffle, including the planned retirement of longtime operations chief John Laughter, who will step down as Executive Vice President, Chief of Operations and President of Delta TechOps effectiv...
Business Operations and Strategy
Delta Air Lines signs major Airbus widebody fleet deal
Positive
Jan 27, 2026
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 20...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Delta Air Lines Orders Boeing 787s, Posts Record Results
Positive
Jan 13, 2026
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 capac...
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.