Delta Air Lines (DAL) AI Stock Analysis

• Market Cap: $38.45B
• Dividend Yield: 1.17%
• Average Volume (3M): 9.25M
• Price to Earnings (P/E): 8.3
• 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: 8,049,942
• 30 Day Avg. Volume: 9,245,495
• 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: 1.41
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 3.30
• Enterprise Value/Ebitda: 5.62
• 1Y Price Target: $73.64
• Price Target Upside: 27.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 6.04
• Revenue Forecast (FY): $58.89B

• Rating: 78 Outperform
• Price Target: $68.00 ▲(17.77% Upside)

Delta Air Lines' overall stock score of 78 reflects its strong financial recovery, robust earnings call highlights, and attractive valuation. The company's improved financial stability and cash flow generation are significant strengths. However, mixed technical indicators and leverage concerns slightly temper the overall positive outlook.

Positive Factors

Revenue Growth

Delta's record revenue growth highlights its strong market position and ability to capture demand, supporting long-term business stability and expansion.

Cash Flow Generation

Strong free cash flow growth enhances Delta's financial flexibility, enabling reinvestment in operations and reducing reliance on external financing.

Debt Reduction

Debt reduction efforts improve Delta's balance sheet health, decreasing financial risk and interest expenses, which supports long-term profitability.

Negative Factors

Leverage Concerns

Despite improvements, leverage concerns persist, potentially limiting Delta's ability to navigate economic downturns or invest in growth opportunities.

Transatlantic Market Challenges

Challenges in the transatlantic market could impact Delta's revenue diversification and growth, necessitating strategic adjustments to maintain profitability.

Government Shutdown Impact

Prolonged government shutdowns pose risks to Delta's operations and financial performance, potentially disrupting travel demand and regulatory processes.

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 ticket sales for passenger travel, which includes both economy and premium class fares. Additional significant revenue streams come from cargo services, ancillary fees (such as baggage fees, seat selection fees, and in-flight purchases), and loyalty programs that encourage customer retention. The airline also benefits from partnerships with other airlines within the SkyTeam alliance and codeshare agreements, which expand its market reach and enhance customer options. Furthermore, Delta has been investing in technology and operational efficiencies to reduce costs and maximize profitability, while also leveraging its extensive route network to capture demand across various market segments.

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: Negative
• Last Price: 57.74
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 57.74 is below the 20-day moving average (MA) of 59.13, below the 50-day MA of 58.84, and above the 200-day MA of 53.58, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 47.49 is Neutral, neither overbought nor oversold. The STOCH value of 61.09 is Neutral, 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	83 Outperform	$32.24B	12.31	28.67%	1.55%	14.75%	71.73%
DAL	78 Outperform	$38.45B	8.30	28.52%	1.17%	4.33%	-1.58%
LTM	69 Neutral	$12.52B	11.33	161.29%	2.25%	5.07%	62.83%
UAL	68 Neutral	$31.54B	9.63	25.59%	―	4.24%	20.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AAL	63 Neutral	$9.01B	16.00	―	―	1.27%	118.64%
LUV	61 Neutral	$16.78B	49.45	4.22%	2.25%	0.65%	―

Delta Air Lines Corporate Events

Delta Air Lines Reports Strong Q3 2025 Earnings

Delta Air Lines Inc., a major player in the aviation industry, operates flights to over 300 destinations worldwide, offering a range of services from premium cabins to loyalty programs. In its latest earnings report, Delta Air Lines announced a record revenue of $16.7 billion for the September quarter of 2025, reflecting a strong performance driven by premium and corporate travel as well as loyalty revenues. The company reported a GAAP operating income of $1.7 billion with a 10.1% operating margin, and a non-GAAP operating income of $1.7 billion with an 11.2% operating margin. Earnings per share stood at $2.17 on a GAAP basis and $1.71 on a non-GAAP basis. Delta’s diversified revenue streams, including a 9% growth in premium revenue and a 12% increase in American Express remuneration, contributed significantly to its financial success. The airline also reported a reduction in adjusted net debt by $2.4 billion from the end of 2024, supported by strong cash generation and strategic debt repayments. Looking ahead, Delta Air Lines projects a positive outlook for the December quarter with an expected operating margin of 10.5% to 12% and adjusted earnings per share between $1.60 and $1.90. The company remains optimistic about its growth trajectory into 2026, focusing on expanding its network and enhancing customer experience.

Delta Air Lines Reports Record Revenue Amid Challenges

Delta Air Lines Inc. recently held its earnings call, revealing a generally positive sentiment despite some challenges. The company reported record third quarter revenue and robust growth in premium and loyalty segments, demonstrating its strong position in the industry. However, Delta also acknowledged challenges in the transatlantic market and potential impacts from the U.S. government shutdown. Overall, the positive achievements were highlighted as outweighing the lowlights.

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.

The most recent analyst rating on (DAL) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Delta Air Lines stock, see the DAL Stock Forecast page.

Delta Air Lines 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.

The most recent analyst rating on (DAL) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Delta Air Lines stock, see the DAL Stock Forecast page.