Delta Air Lines (DAL) AI Stock Analysis

• Market Cap: $39.44B
• Dividend Yield: 1.13%
• Average Volume (3M): 9.47M
• Price to Earnings (P/E): 8.5
• Beta (1Y): 1.21
• 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: 12,259,440
• 30 Day Avg. Volume: 9,469,900
• 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: 1.37
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 3.30
• Enterprise Value/Ebitda: 5.68
• 1Y Price Target: $73.64
• Price Target Upside: 23.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 78 Outperform
• Price Target: $68.00 ▲(14.02% 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 demonstrates strong revenue and profit growth post-pandemic, with effective cost management and improved debt metrics. However, high reliance on debt and ongoing capital expenditures pose potential risks.

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	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	9.54B	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: 59.64
• 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 59.64 is above the 20-day moving average (MA) of 58.09, above the 50-day MA of 59.00, and above the 200-day MA of 53.99, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 53.65 is Neutral, neither overbought nor oversold. The STOCH value of 70.78 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	78 Outperform	$39.44B	8.51	28.52%	1.13%	4.33%	-1.58%
UAL	76 Outperform	$32.10B	9.93	25.59%	―	4.24%	20.29%
RYAAY	75 Outperform	$30.97B	14.66	27.12%	1.61%	10.61%	37.32%
LUV	68 Neutral	$17.48B	50.06	4.30%	2.15%	1.64%	284.24%
LTM	65 Neutral	$12.78B	11.40	161.29%	2.26%	5.64%	63.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AAL	59 Neutral	$7.85B	15.25	-21.27%	―	1.50%	―

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.

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.