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Delta Air Lines, Inc.
S&P 500
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$53.4B
Market Cap
9.1
P/E
1.28
PEG
12.7%
ROCE
27.7%
ROE
0.91
D/E
9.2%
OPM
-11.1%
% from 52W High
68
α RS
🔍 DAL is showing a high-conviction setup because it matches 5 of 37 tracked screener presets, RS Rating is 68, and it's within 11.1% of its 52-week high. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating 52W High
Sources
Conviction 5/37 · RS Rating 68 · 11.1% from 52W high
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🌏 Global Investor Returns
Currency-adjusted total returns for DAL including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding DAL
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Manager Shares Value % of Fund Period
Warren Buffett Berkshire Hathaway Inc 39.81M $2.6B 1.01% Mar 2026
Steve Cohen Point72 Asset Management 294.2K $19.6M 0.03% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue (non-GAAP)
$17.7B
+14% YoY
Operating Income (non-GAAP)
$1.6B
Not stated
Operating Margin (non-GAAP)
8.8%
Not stated
EPS (adjusted)
$1.56
Not stated
What Went Right
  • Record Q2 revenue of $17.7B, up 14% YoY on just ~1% capacity growth, driving TRASM up 12.4%.
  • Beat guidance on EPS ($1.56), pre-tax profit ($1.4B) and operating margin (8.8%) despite the highest quarterly fuel expense in company history.
  • Diversified revenue streams reached 61% of total revenue, with premium and loyalty revenue both up nearly 20% and Amex remuneration expected to hit $9B in 2026, up 10% YoY.
What to Watch
  • Fuel remains a major pressure point: total fuel expense rose nearly $2B YoY to $4.4B, and Q3 fuel is guided higher at ~$3.15/gal with total fuel expense up ~40% YoY.
  • Non-fuel unit costs rose 6.8% YoY in Q2 partly because capacity growth came in several points below plan; management expects only modest improvement in Q3 before normalizing in Q4.
  • Management flagged lingering softness in Mexico/short-haul Latin markets, a refinery outage that will weigh on Q3 by $0.05-$0.07/gal, and cargo growth moderating from the 39% Q2 pace.
Management Guidance
  • Q3 total revenue expected to grow mid-teens YoY.
  • Q3 operating margin guided to 11%-13% and EPS of $2.00-$2.50.
  • Full-year 2026 EPS reaffirmed at $6.50-$7.50, free cash flow of $3B-$4B, with gross leverage targeted at ~2x by year-end.
Investor Lens
The thesis is stronger after this call: Delta absorbed a multibillion-dollar fuel headwind, beat its own Q2 guidance, and reaffirmed full-year earnings growth of 20%. Pricing power is holding thanks to industry-wide fuel recapture, a disciplined capacity plan, and a highly diversified revenue base led by premium, loyalty and Amex. Management also reinforced balance-sheet strength with adjusted net debt declining to $13.6B and a path back to double-digit operating margins in the second half. If fuel moderates as the forward curve implies, Delta appears well positioned to exit 2026 with momentum into 2027.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 beats guidance with record revenue, EPS $1.56 despite record fuel
Revenue
Q2 revenue was a record $17.7B, up 14% YoY on roughly 1% capacity growth, with total unit revenue up 12.4%. Domestic unit revenue rose 12%, international grew 8% led by Latin America, and diverse revenue streams accounted for 61% of total revenue.
Profitability
Delta delivered pre-tax profit of $1.4B and adjusted EPS of $1.56, ahead of initial guidance, with GAAP EPS of $2.44. The company expects Q3 EPS of $2.00-$2.50, up from $1.70 in the prior-year quarter.
Margins
Non-GAAP operating margin was 8.8%, roughly 9% per the CEO and better than guidance. Total fuel expense was $4.4B, up nearly $2B YoY at an all-in price of $3.93/gal, while non-fuel unit costs rose 6.8% YoY due to muted capacity growth.
Balance Sheet
Adjusted net debt ended Q2 at $13.6B, down from year-end, and gross leverage is targeted at about 2x by year-end. Free cash flow for the first half was $1.4B, with full-year guidance of $3B-$4B; Delta also announced a 15% dividend increase.
Key Risks
Fuel volatility remains the key swing factor, compounded by a temporary refinery outage that will clip Q3 results. Management also flagged elevated non-fuel cost growth from slower-than-planned capacity, softer Mexico/short-haul Latin demand, and the risk that cargo growth normalizes from its exceptional 39% Q2 pace.
Outlook
For Q3, Delta expects revenue up mid-teens YoY, operating margin of 11%-13%, and EPS of $2.00-$2.50, assuming ~$3.15/gal all-in fuel. Full-year 2026 EPS guidance is reaffirmed at $6.50-$7.50 with free cash flow of $3B-$4B.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-10
Record revenue and profit growth driven by strong demand, premium and loyalty revenue, and operational excellence. Guidance for full-year EPS and free cash flow affirmed despite fuel headwinds, with continued investment in fleet, technology, and customer experience.
Q1 2026 Q1 2026 2026-04-08
Earnings rose 40% year-over-year on record revenue, with strong demand across all segments and robust premium and loyalty growth. Despite a $2B fuel headwind, capacity is being reduced and margins protected, with June quarter revenue expected to grow low teens percent.
Q4 2025 Q4 2025 2026-01-13
Record revenue and free cash flow were achieved, with premium, loyalty, and diversified revenue streams driving margin expansion. 2026 guidance calls for 20% EPS growth, robust free cash flow, and continued investment in premium products and fleet renewal.
Q3 2025 Q3 2025 2025-10-09
Third-quarter revenue rose 4% to $15.2 billion, with strong premium, corporate, and loyalty growth. Operating margin reached 11.2%, and full-year EPS is expected at $6, with free cash flow guidance raised to $3.5-$4 billion. Premium products and loyalty continue to drive outperformance.
Q2 2025 Q2 2025 2025-07-10
Pre-tax income reached $1.8B with record revenue and strong free cash flow. Premium and loyalty segments outperformed, while main cabin softness prompted capacity cuts. Full-year EPS is guided at $5.25-$6.25, with $3B-$4B free cash flow and continued debt reduction.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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