Delta Air Lines Cautious on 2026 Outlook, Strong Cash Flow Highlighted
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Should l Buy DAL?
Source: Benzinga
- Strong Cash Flow: Delta Air Lines generated $4.6 billion in free cash flow in 2025 and expects to maintain $3 to $4 billion in 2026, showcasing its robust cash generation capabilities amid economic volatility, which bolsters investor confidence.
- Cautious Earnings Guidance: Management issued a 2026 EPS forecast of $6.50 to $7.50, below the market's $7.30 expectation, reflecting a cautious stance due to macroeconomic uncertainties, even as demand from high-income travelers remains resilient.
- MRO Business Growth Potential: Delta's MRO segment is projected to grow by 20%, targeting over $200 million in operating profit by 2028, significantly up from $76 million in 2025, demonstrating the company's strategic success in diversifying revenue sources.
- Analyst Support Continues: Bank of America Securities analyst Didora reiterated a Buy rating on Delta with an $80 price target, based on a 6.0x 2026E EBITDAR valuation, indicating market confidence in Delta's long-term growth potential despite a cautious short-term outlook.
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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: 71.110
Low
77.00
Averages
83.50
High
90.00
Current: 71.110
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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