Delta Air Lines Shows Strong Turnaround Amid Investor Caution
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: CNBC
- Technical Support Level: Delta recently pulled back to the $63 support level, which capped rallies before breaking higher in late 2025; maintaining this level is crucial for reaching the $80 target price.
- Profitability Improvement: Despite a forward P/E ratio of approximately 9.5x, significantly lower than the industry average of 21.0x, Delta's expected EPS growth of 15.8% indicates a disconnect between its improved profitability and market valuation.
- High-Quality Revenue Source: The partnership with American Express generated over $8 billion in high-margin revenue in 2025, providing a stable earnings stream that materially reduces business risk through economic cycles, enhancing financial stability.
- Debt Reduction: Delta's deleveraging has pushed its debt toward investment-grade territory, expanding capital return options and lowering equity risk, thereby strengthening the company's resilience against economic volatility.
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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 81.36 USD with a low forecast of 69.00 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.
16 Analyst Rating
16 Buy
0 Hold
0 Sell
Strong Buy
Current: 65.830
Low
69.00
Averages
81.36
High
90.00
Current: 65.830
Low
69.00
Averages
81.36
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.
Delta Air Lines Shows Strong Turnaround Amid Investor Caution
- Technical Support Level: Delta recently pulled back to the $63 support level, which capped rallies before breaking higher in late 2025; maintaining this level is crucial for reaching the $80 target price.
- Profitability Improvement: Despite a forward P/E ratio of approximately 9.5x, significantly lower than the industry average of 21.0x, Delta's expected EPS growth of 15.8% indicates a disconnect between its improved profitability and market valuation.
- High-Quality Revenue Source: The partnership with American Express generated over $8 billion in high-margin revenue in 2025, providing a stable earnings stream that materially reduces business risk through economic cycles, enhancing financial stability.
- Debt Reduction: Delta's deleveraging has pushed its debt toward investment-grade territory, expanding capital return options and lowering equity risk, thereby strengthening the company's resilience against economic volatility.
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Delta Air Lines Orders 31 Airbus Widebody Aircraft
- Order Size: Delta Air Lines has placed a firm order for 16 A330-900s and 15 A350-900s from Airbus, with an option for up to 20 additional widebody aircraft, reflecting the company's confidence in future international markets.
- Delivery Timeline: Deliveries of these aircraft will begin in 2029, expanding Delta's widebody fleet to 55 A330neos and 79 A350s, thereby enhancing its operational capacity for international routes.
- Financing Arrangement: Delta has secured long-term financing for a substantial portion of the purchase price of each aircraft, which alleviates short-term financial pressure and ensures liquidity as the company expands its international market presence.
- Strategic Importance: CEO Ed Bastian stated that these new aircraft will enhance Delta's capabilities in long-haul markets and elevate its premium offerings, further solidifying the long-standing partnership with Airbus and yielding operational efficiencies and long-term cost benefits.
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