Delta Air Lines and United Airlines Project Strong 2026 Earnings Growth
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Earnings Recovery: Delta Air Lines is projected to rebound with a 23% increase in EPS to $7.17 in 2026, despite a dip to $5.82 in 2025, indicating strong potential during economic recovery.
- Sales Growth: Delta's sales are expected to rise by 2% in 2025 and another 3% to $65.19 billion in 2026, reflecting its sustained competitiveness and market share enhancement in the airline sector.
- Cash Flow Performance: United Airlines boasts an impressive free cash flow conversion rate of 130%, significantly above the 80% industry benchmark, indicating high earnings quality and better resilience against economic fluctuations while supporting shareholder returns.
- Valuation Appeal: Both Delta and United stocks trade around the industry average forward P/E of 9x, showcasing long-term investment value despite their standout performance in a highly competitive airline market.
Analyst Views on DAL
Wall Street analysts forecast DAL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DAL is 73.64 USD with a low forecast of 65.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
14 Buy
0 Hold
0 Sell
Strong Buy
Current: 71.290
Low
65.00
Averages
73.64
High
90.00
Current: 71.290
Low
65.00
Averages
73.64
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.
