Berkshire Acquires Delta Airlines Stock Amid Oil Price Shock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2026
0mins
Source: NASDAQ.COM
- Oil Price Shock Context: The first quarter of 2026 saw the U.S. go to war with Iran, causing a spike in oil prices that pressured airlines with high fuel costs, yet Delta Airlines demonstrated relative resilience, making it a target for Berkshire's investment.
- Berkshire's Investment Decision: Following Warren Buffett's delegation of investment decisions to Greg Abel, Abel established a $2.65 billion position in Delta during Q1, reflecting confidence in the airline's long-term prospects amidst market volatility.
- Refinery Advantage: Delta's acquisition of an oil refinery in 2012 provides a competitive edge against high fuel prices, with the refining segment generating $38 million and $157 million in operating income in 2024 and 2025, respectively, offsetting some fuel costs.
- Market Consolidation Expectations: CEO Ed Bastian anticipates that rising fuel prices will lead to significant structural reforms in the industry, potentially forcing weaker competitors out of the market, thereby enhancing Delta's market share and leadership position.
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Analyst Views on DAL
Wall Street analysts forecast DAL stock price to rise
18 Analyst Rating
18 Buy
0 Hold
0 Sell
Strong Buy
Current: 82.490
Low
77.00
Averages
83.50
High
90.00
Current: 82.490
Low
77.00
Averages
83.50
High
90.00
About DAL
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company has hubs and markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon, and Tokyo. Its segments include Airline and Refinery. Its airline segment is managed as a single business unit that provides scheduled air transportation for passengers and cargo throughout the United States and around the world and includes its loyalty program, as well as other ancillary businesses. Its refinery segment operates for the benefit of the airline segment by providing jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third parties. The refinery's production consists of jet fuel as well as non-jet fuel products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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