Key Stats for Delta Air Lines Stock
- Price Change for Delta Air Lines stock: -2.4%
- $DAL Share Price as of Jan. 13: $69.33
- 52-Week High: $73.16
- $DAL Share Price Target: $79.83
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What Happened?
Delta Air Lines (DAL) stock moved lower on Tuesday as it beat revenue expectations in its fourth quarter earnings report. The airline reported revenue of $16 billion, higher than the $15.69 billion estimate. Adjusted earnings per share of $1.55 billion were also in line with estimates.
The revenue beat came as Delta reported strong performance in premium cabins. Premium ticket revenue jumped 9% to $5.7 billion in the fourth quarter, overtaking main cabin revenue for the first time.
Main cabin revenue dropped 7% to $5.62 billion as budget-conscious travelers pulled back on spending.
CEO Ed Bastian struck a cautious tone about 2026, acknowledging risks from tariffs and geopolitical uncertainty.
The company expects revenue growth of 5% to 7% in the first quarter, with earnings per share projected to grow 20% for the full year.
However, Delta trimmed its initial 2026 guidance after the government shutdown and tariff uncertainty disrupted bookings late last year.
Given our stock valuation model, DAL stock could return 7% annually over the next two years.
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What the Market Is Telling Us About DAL Stock
The market’s muted reaction to Delta’s revenue miss suggests investors are focused on the bigger picture. DAL stock is betting that the airline’s premium strategy will pay off over time, even as economic headwinds create near-term turbulence.
Delta’s premium revenue now exceeds main cabin revenue, a milestone the company didn’t expect to hit until later this year.
CEO Bastian made it clear that virtually all of Delta’s seat growth in 2026 will come from premium cabins, not economy class. This strategy caters to higher-spending business travelers and affluent leisure customers who continue to prioritize travel despite economic uncertainty.
The airline also announced plans to purchase 30 Boeing 787-10 Dreamliners with deliveries starting in 2031, signaling confidence in long-term international growth.
With Delta’s partnership with American Express and its SkyMiles loyalty program, which generated $8.2 billion in revenue last year, the company is building multiple revenue streams beyond ticket sales.
Still, investors should watch whether main cabin revenue can stabilize. If budget travelers stay on the sidelines and premium demand softens, DAL stock could face pressure.
For now, the airline is navigating a “K-shaped economy” where wealthy customers keep spending while everyone else pulls back.
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How Much Upside Does DAL Stock Have From Here?
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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!
