Delta Air Lines, Inc. (DAL): A Bull Case Theory

We came across a bullish thesis on Delta Air Lines, Inc. on Investing With Purpose’s Substack. In this article, we will summarize the bulls’ thesis on DAL. Delta Air Lines, Inc.'s share was trading at $59.47 as of September 18th. DAL’s trailing and forward P/E were 8.55 and 8.11 respectively according to Yahoo Finance.

Delta Air Lines (DAL) reported strong June-quarter results that exceeded expectations, highlighting the company’s operational resilience and growth potential. Revenue reached a record $15.5 billion, up 1% year-over-year on a 4% capacity increase, marking the highest June quarter in company history. Adjusted EPS came in at $2.10, slightly above analyst estimates, while GAAP EPS was $3.27, reflecting robust margins and one-time items.

Operating margins stood at a solid 13.2% on a non-GAAP basis, impressive given ongoing fuel and labor headwinds. The company also restored full-year EPS guidance to $5.25–$6.25 and raised free cash flow expectations to $3–$4 billion, reinforcing its ability to manage debt and maintain financial flexibility. Looking ahead to Q3, revenue growth is projected at 0–4% with EPS of $1.25–$1.75, in line with prior guidance, suggesting steady operational momentum.

The market reacted positively, with shares climbing 10–12%, making DAL one of the top performers on the S&P 500, signaling renewed investor confidence after a choppy 2025. The stock’s breakout above $51 triggered near-term trading opportunities, with partial profits taken around $55 and potential upside toward $60 if volume remains supportive. Retests of $54–$55 could offer additional entry points, while dips to $52–$53 may serve as fallback opportunities. For long-term investors, pullbacks to $45–$47 provide an attractive free-cash-flow yield near 8% and a forward dividend yield exceeding 2%, underpinned by Delta’s focus on premium products and operational efficiency.

Overall, Delta’s combination of record revenue, strong earnings, and restored guidance positions it for both near-term trading gains and long-term accumulation, with multiple catalysts supporting sustained upside in the stock.

Previously we covered a bullish thesis on Delta Air Lines, Inc. (DAL) by jaunty_quant in September 2025, which highlighted strong technical indicators, solid fundamentals, and potential upside to $56. The stock has appreciated approximately 17% since our coverage, as the thesis played out with improving investor confidence. Investing With Purpose shares a similar view but emphasizes record results, restored guidance, and strong free cash flow as key catalysts.

Delta Air Lines, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held DAL at the end of the second quarter which was 67 in the previous quarter. While we acknowledge the potential of DAL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.