← Back to All US Stocks

DAL Stock Analysis - DELTA AIR LINES, INC. AI Rating

DAL NYSE Air Transportation, Scheduled DE CIK: 0000027904
Recently Updated • Analysis: Mar 23, 2026 • SEC Data: 2025-12-31
AI Rating
BUY
72% Confidence

📊 DAL Key Takeaways

Revenue: $63.4B
Net Margin: 7.9%
Free Cash Flow: $3.8B
Current Ratio: 0.40x
Debt/Equity: 0.64x
EPS: $7.66
AI Rating: BUY with 72% confidence

Investment Thesis

Delta demonstrates strong operational profitability with 9.2% operating margins and impressive 44.8% YoY net income growth, indicating effective cost management and revenue optimization in a cyclical industry. The company maintains healthy cash generation with $3.8B free cash flow and a robust 57.1x interest coverage ratio, though liquidity constraints and elevated leverage require monitoring.

DAL Strengths

  • + Strong earnings growth with 44.8% YoY net income increase and 7.9% net margin demonstrates operational leverage
  • + Excellent interest coverage ratio of 57.1x indicates very strong debt servicing capability
  • + Solid free cash flow generation of $3.8B with 6.1% FCF margin supports capital investments and shareholder returns
  • + Healthy ROE of 24.0% shows efficient use of shareholder capital

DAL Risks

  • ! Critically low liquidity with current ratio of 0.40x and quick ratio of 0.38x raises concerns about short-term obligations coverage
  • ! Substantial long-term debt of $13.3B creates refinancing risk if interest rates remain elevated
  • ! Cyclical airline industry exposure makes earnings vulnerable to economic downturns, fuel price volatility, and capacity discipline
  • ! Capital expenditure of $4.5B annually limits flexibility and leaves modest cushion after debt service

Key Metrics to Watch

DAL Financial Metrics

Revenue
$63.4B
Net Income
$5.0B
EPS (Diluted)
$7.66
Free Cash Flow
$3.8B
Total Assets
$81.3B
Cash Position
$4.3B

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

DAL Profitability Ratios

Gross Margin N/A
Operating Margin 9.2%
Net Margin 7.9%
ROE 24.0%
ROA 6.2%
FCF Margin 6.1%

DAL vs Default Sector

How DELTA AIR LINES, INC. compares to Default sector averages

Net Margin
DAL 7.9%
vs
Sector Avg 12.0%
DAL Sector
ROE
DAL 24.0%
vs
Sector Avg 15.0%
DAL Sector
Current Ratio
DAL 0.4x
vs
Sector Avg 1.8x
DAL Sector
Debt/Equity
DAL 0.6x
vs
Sector Avg 0.7x
DAL Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

DAL Balance Sheet & Liquidity

Current Ratio
0.40x
Quick Ratio
0.38x
Debt/Equity
0.64x
Debt/Assets
0.0%
Interest Coverage
57.08x
Long-term Debt
$13.3B

DAL 5-Year Financial Trend

DAL 5-year financial data: Year 2021: Revenue $47.0B, Net Income $4.8B, EPS $7.30. Year 2022: Revenue $50.6B, Net Income -$12.4B, EPS $-19.49. Year 2023: Revenue $58.0B, Net Income $280.0M, EPS $0.44. Year 2024: Revenue $61.6B, Net Income $1.3B, EPS $2.06. Year 2025: Revenue $63.4B, Net Income $4.6B, EPS $7.17.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: DELTA AIR LINES, INC.'s revenue has grown significantly by 35% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.17 reflects profitable operations.

DAL Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
6.1%
Free cash flow / Revenue

DAL Quarterly Performance

Quarterly financial performance data for DELTA AIR LINES, INC. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $15.7B $37.0M $1.97
Q2 2025 $16.6B $37.0M $2.01
Q1 2025 $13.7B $37.0M $0.06
Q3 2024 $15.5B $37.0M $1.72
Q2 2024 $15.6B $37.0M $2.01
Q1 2024 $12.8B $37.0M $0.06
Q3 2023 $14.0B -$363.0M $0.76
Q2 2023 $13.8B -$205.0M $-0.32

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

DAL Capital Allocation

Operating Cash Flow
$8.3B
Cash generated from operations
Capital Expenditures
$4.5B
Investment in assets
Dividends Paid
$440.0M
Returned to shareholders

DAL SEC Filings

Access official SEC EDGAR filings for DELTA AIR LINES, INC. (CIK: 0000027904)

📋 Recent SEC Filings

Date Form Document Action
Mar 17, 2026 8-K delta_8k.htm View →
Mar 5, 2026 8-K delta_8k.htm View →
Feb 27, 2026 4 xslF345X05/ownership.xml View →
Feb 13, 2026 8-K delta_8k.htm View →
Feb 13, 2026 4 xslF345X05/ownership.xml View →

Frequently Asked Questions about DAL

What is the AI rating for DAL?

DELTA AIR LINES, INC. (DAL) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are DAL's key strengths?

Strong earnings growth with 44.8% YoY net income increase and 7.9% net margin demonstrates operational leverage. Excellent interest coverage ratio of 57.1x indicates very strong debt servicing capability.

What are the risks of investing in DAL?

Critically low liquidity with current ratio of 0.40x and quick ratio of 0.38x raises concerns about short-term obligations coverage. Substantial long-term debt of $13.3B creates refinancing risk if interest rates remain elevated.

What is DAL's revenue and growth?

DELTA AIR LINES, INC. reported revenue of $63.4B.

Does DAL pay dividends?

DELTA AIR LINES, INC. pays dividends, with $440.0M distributed to shareholders in the trailing twelve months.

Where can I find DAL SEC filings?

Official SEC filings for DELTA AIR LINES, INC. (CIK: 0000027904) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is DAL's EPS?

DELTA AIR LINES, INC. has a diluted EPS of $7.66.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 23, 2026 | Data as of: 2025-12-31 | Powered by Claude AI