Buffett Reinvests in Delta Airlines After Six Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 18 2026
0mins
Source: Fool
- Buffett's Return to Airlines: Under new CEO Greg Abel, Berkshire Hathaway's first 13F filing reveals a $2.65 billion investment in Delta Airlines, making it the 14th largest holding with a 6.1% stake, indicating a renewed confidence in the airline sector.
- Delta's Revenue Growth: In Q1 2026, Delta's adjusted operating revenue reached a record $14.2 billion, up 9.4% year-over-year, with high-margin premium products and loyalty revenue growing by 14% and 13% respectively, showcasing the company's successful transformation into a brand with significant value.
- Fuel Cost Challenges: Despite facing a doubling of fuel prices due to Middle East conflicts, leading to over $2 billion in additional costs expected in Q2, Delta is responding by trimming capacity and raising fares to recover 40% to 50% of the increased costs.
- Long-Term Growth Potential: Delta's management projects adjusted earnings per share for 2026 to be between $6.50 and $7.50, implying about 20% growth at the midpoint, with the current stock price around $72 trading at approximately 10 times earnings, presenting a favorable investment opportunity.
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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: 79.510
Low
77.00
Averages
83.50
High
90.00
Current: 79.510
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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- Debt Level Reduction: The company successfully reduced its debt to $34.7 billion, the lowest in over a decade, which, despite high fuel price pressures, lays a foundation for future profitability growth according to analysts.
- Earnings Beat Expectations: American Airlines exceeded earnings expectations in Q1 2026, demonstrating that its efforts to enhance customer loyalty and increase premium demand are yielding results, even as its stock fell nearly 8% this week.
- Complex Market Environment: While airline stocks showed mixed performance and face challenges from fluctuating oil prices, American Airlines' growth potential and strong market demand may support its long-term recovery.
See More
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See More
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- Divergent Business Models: Joby is pursuing a vertically integrated, direct-to-consumer model, planning to own and operate its own air taxi network, while Archer adopts an asset-light approach, leveraging partnerships with Stellantis to achieve efficient production and rapid market expansion.
- Enhanced Production Capacity: Joby's facilities in California and Ohio can produce up to 500 eVTOL aircraft annually, while Archer's high-volume manufacturing facility in Georgia aims for 650 aircraft per year, showcasing the competitive advantages in production capabilities for both companies.
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- Earnings Expectations Downgraded: Wall Street analysts have lowered their adjusted EPS estimates for airlines for 2026, with United Airlines' forecast dropping from $13.33 to $9.46, and similar declines for Delta and Southwest, reflecting a cautious outlook on future profitability.
- Sustained Market Demand: Despite rising costs, airlines are maintaining strong demand, with Delta and United successfully increasing fares in the current environment, suggesting they are likely to benefit from future capacity constraints and demonstrating relative resilience against the industry's cyclical nature.
See More
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