Key Stats for Delta Air Lines Stock
- 1- Year Price Change for DAL stock: -7%
- $DAL Share Price as of Jan. 16: $70.43
- 52-Week High: $73.16
- $DAL Stock Price Target: $81.41
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What Happened?
Delta Air Lines (DAL) stock moved lower even as Bank of America reaffirmed its “buy” rating despite Delta lowering its 2026 earnings guidance.
The airline now expects earnings of $6.50 to $7.50 per share for the year, below the Street consensus of about $7.30.
The revised guidance came during Delta’s fourth-quarter earnings call earlier this week. But analysts at Bank of America say the pullback doesn’t change their bullish view on the stock.
After a follow-up call with CFO Dan Janki and investors, they highlighted Delta’s strong cash generation and focus on premium travel as key reasons to stay positive.
“The call reinforced our thesis that DAL is a key structural leader in the airline industry given its premium revenue focus, strong cash generation, low leverage, and diversified revenue streams,” analyst Andrew Didora wrote in a note to clients.
Delta reported record revenue of $58.3 billion in 2025, up 2.3% year over year, with an operating margin of 10%.
The company generated $4.6 billion in free cash flow, the highest in its history.
CEO Ed Bastian said on the earnings call that Delta has delivered $10 billion in free cash flow over the past three years, allowing the airline to cut leverage by more than 50%.
The airline also announced it will pay out $1.3 billion in profit sharing to employees in February, one of the largest payouts in company history.
Meanwhile, premium revenue grew 7% in 2025, and Delta’s co-brand partnership with American Express grew remuneration 11% to $8.2 billion.
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What the Market Is Telling Us About DAL Stock
DAL stock is getting support from investors who believe the airline’s premium strategy sets it apart from competitors.
About 60% of Delta’s total revenue now comes from diversified sources like loyalty, cargo, and maintenance services rather than just ticket sales.
Bank of America noted that Delta “remains positive on fundamentals,” especially as its premium customers prove resilient to macroeconomic volatility.
The airline guided for first quarter revenue growth of 5% to 7%, well ahead of its 3% capacity growth, which suggests strong pricing power.
Delta is also investing heavily in its premium offerings.
- DAL announced an order for 30 Boeing 787-10 aircraft with options for 30 more, with deliveries starting in 2031.
- Those planes will be used to expand international routes while offering more premium seating and better fuel efficiency.
For now, DAL stock appears to have the backing of analysts who see the airline’s cash flow generation and low leverage as major advantages.
The company expects to generate $3 billion to $4 billion in free cash flow in 2026, supporting further debt reduction and potential shareholder returns.
The conservative guidance might reflect caution about macro uncertainty, but Delta’s structural advantages seem to be keeping investors on board.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
