Want to see DAL full AI Analyst Report?
Top Page
Delta Air Lines
(NYSE:DAL)
Select Model
Select Model
Rating:70Outperform
Price Target:
$90.00
▲(7.63% Upside)
Action:Upgraded
Date:10/09/26
The score is driven primarily by solid financial performance (strong current cash generation and improved leverage) and a constructive earnings-call outlook (strong demand, unit-revenue strength, and continued de-levering). These positives are tempered by a mixed technical picture (below key moving averages with neutral momentum) and only moderate valuation support (P/E 13.509 with a low ~0.95% dividend yield), alongside fuel and cost pressures highlighted in guidance.
Positive Factors
Diversified revenue and loyalty growth
A broad revenue mix reduces reliance on standard economy tickets and supports resilience across travel cycles. Strong premium, loyalty, cargo, and MRO growth can improve customer monetization, diversify earnings, and provide multiple avenues for durable expansion over the next several quarters.
Negative Factors
Structural fuel-cost exposure
Fuel is a major recurring airline expense, so a $6 billion annual increase can absorb a significant portion of operating profit and cash flow. Even with strong demand and disciplined capacity, sustained fuel inflation could constrain margins, investment capacity, and earnings visibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue and loyalty growth
A broad revenue mix reduces reliance on standard economy tickets and supports resilience across travel cycles. Strong premium, loyalty, cargo, and MRO growth can improve customer monetization, diversify earnings, and provide multiple avenues for durable expansion over the next several quarters.
Read all positive factors
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 (DAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$49.59B
Dividend Yield1.07%
Average Volume (3M)7.29M
Price to Earnings (P/E)15.0
Beta (1Y)1.24
Revenue Growth14.11%
EPS Growth-29.50%
CountryUS
Employees100,000
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)5.04
Shares Outstanding657,912,350
10 Day Avg. Volume7,929,920
30 Day Avg. Volume7,285,577
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)2.17
Price to Sales (P/S)0.71
P/FCF Ratio11.70
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit3.26
Enterprise Value/Ebitda9.49
Forecast
1Y Price Target
$103.71Price Target Upside24.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)5.43
Revenue Forecast (FY)$66.90B
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 sold for domestic and international flights across different fare classes/cabins, with pricing influenced ...
Delta Air Lines Earnings Call Summary
Earnings Call Date:Oct 09, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 08, 2027
Earnings Call Sentiment Positive
The call was strongly positive, with record or improving operational performance, robust demand, broad-based unit revenue growth, strong loyalty and corporate trends, expanding diversified revenue, healthy cash generation, and balance-sheet progress. These strengths were partly offset by substantially higher fuel costs, elevated nonfuel unit costs, disruption-related expenses, and uncertainty around fuel prices and capacity normalization.Positive Updates
Strong Quarterly Revenue and Profitability
September quarter revenue grew 16% to approximately $2.4 billion above the prior year, while pretax profit was $1.5 billion, consistent with last year, despite higher fuel costs. Earnings were $1.72 per share and operating margin was 9.4%.
Negative Updates
Significant Fuel Cost Pressure
Delta absorbed $1.6 billion of higher fuel costs during the September quarter, with fuel expense more than $500 million above guidance. The fuel price averaged $3.61 per gallon, including a refinery benefit of $0.13, and the full-year fuel bill is expected to increase by 60%, or approximately $6 billion.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Quarterly Revenue and Profitability
September quarter revenue grew 16% to approximately $2.4 billion above the prior year, while pretax profit was $1.5 billion, consistent with last year, despite higher fuel costs. Earnings were $1.72 per share and operating margin was 9.4%.
Read all positive updates
Company Guidance
For the December quarter, Delta expects revenue growth of approximately 20% year-over-year on roughly 3% capacity growth, with seat growth below 2%, pretax profits of $1.2 billion even with fuel prices expected to double over last year, all in fuel price of $4.25 per gallon including a refinery benefit of approximately $0.40 per gallon, nonfuel unit cost growth to improve 1 to 2 points sequentially, earnings of $1.15 to $1.65 per share, and an operating margin of 7% to 9%; for the full year, it expects pretax profits of roughly $4.5 billion, earnings of $5.10 to $5.60 per share, free cash flow of approximately $2.5 billion, debt reduction of more than $2 billion, a refinery benefit of more than $700 million, and a fuel bill increase of 60%, or $6 billion, while looking to next year it remains on track for low single digit unit cost growth, and MRO is expected to deliver really good double digit revenue growth with at least 100 basis points in a year of margin expansion.Delta Air Lines Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 71.80B | 63.36B | 61.64B | 58.05B | 50.58B | 29.90B |
| Gross Profit | 21.46B | 14.47B | 16.56B | 15.52B | 11.16B | 2.13B |
| EBITDA | 7.38B | 8.03B | 7.92B | 8.78B | 5.05B | 3.67B |
| Net Income | 3.29B | 5.00B | 3.46B | 4.61B | 1.32B | 280.00M |
Balance Sheet | ||||||
| Total Assets | 86.05B | 81.19B | 75.37B | 73.64B | 72.28B | 72.47B |
| Cash, Cash Equivalents and Short-Term Investments | 3.79B | 4.31B | 3.07B | 3.87B | 6.53B | 11.32B |
| Total Debt | 18.84B | 21.08B | 22.77B | 27.28B | 30.61B | 34.68B |
| Total Liabilities | 63.53B | 60.43B | 60.08B | 62.54B | 65.71B | 68.57B |
| Stockholders Equity | 22.51B | 20.75B | 15.29B | 11.11B | 6.58B | 3.89B |
Cash Flow | ||||||
| Free Cash Flow | 5.68B | 3.84B | 2.88B | 1.14B | -2.00M | 16.00M |
| Operating Cash Flow | 8.00B | 8.34B | 8.03B | 6.46B | 6.36B | 3.26B |
| Investing Cash Flow | -4.81B | -4.19B | -3.74B | -3.15B | -6.92B | -897.00M |
| Financing Cash Flow | -2.30B | -3.08B | -4.26B | -3.39B | -4.54B | -3.85B |
Delta Air Lines Technical Analysis
Negative
83.62
Price Trends
82.08
Negative
83.87
Negative
75.85
Negative
Market Momentum
-1.17
Positive
33.70
Neutral
10.33
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 83.62 is above the 20-day moving average (MA) of 81.80, above the 50-day MA of 82.08, and above the 200-day MA of 75.85, indicating a bearish trend. The MACD of -1.17 indicates Positive momentum. The RSI at 33.70 is Neutral, neither overbought nor oversold. The STOCH value of 10.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $49.59B | 14.95 | 15.40% | 1.07% | 14.11% | -29.50% | |
70 Outperform | $31.19B | 8.96 | 22.50% | ― | 8.48% | 6.74% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $19.32B | 23.80 | 11.27% | 1.82% | 9.46% | 137.74% | |
48 Neutral | $3.92B | -22.23 | -4.50% | 2.16% | 9.79% | -161.50% | |
46 Neutral | $7.86B | -24.24 | 8.29% | 1.41% | 7.53% | -157.37% | |
45 Neutral | $1.11B | -1.22 | -45.51% | ― | 3.99% | -119.13% |
* Industrials Sector Average
DAL
Delta Air Lines
75.37
14.27
23.36%
ALK
Alaska Air
35.13
-13.37
-27.57%
JBLU
JetBlue Airways
2.93
-1.74
-37.26%
LUV
Southwest Airlines
39.50
5.67
16.77%
UAL
United Airlines Holdings
96.10
-5.19
-5.12%
AAL
American Airlines
11.88
-0.29
-2.38%
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.