Delta Air Lines (DAL) Slid Over Declining Consumer Confidence

Scout Investments, Inc., an affiliate of Carillon Tower Advisers, released the “Carillon Scout Mid Cap Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the Russell Midcap Index posted negative returns. Significant policy uncertainty, signaled by aggressive tariff announcements, reversed the positive sentiment prevailing in the domestic market at the start of the year, turning it negative. The first-quarter macroeconomic environment showed signs of slowdown but not recession. The economy seems okay, but downside risks are rising. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Carillon Scout Mid Cap Fund highlighted stocks such as Delta Air Lines, Inc. (NYSE:DAL). Headquartered in Atlanta, Georgia, Delta Air Lines, Inc. (NYSE:DAL) is an airline company. The one-month return of Delta Air Lines, Inc. (NYSE:DAL) was 0.69%, and its shares lost 2.33% of their value over the last 52 weeks. On June 23, 2025, Delta Air Lines, Inc. (NYSE:DAL) stock closed at $48.25 per share, with a market capitalization of $31.505 billion.

Carillon Scout Mid Cap Fund stated the following regarding Delta Air Lines, Inc. (NYSE:DAL) in its Q1 2025 investor letter:

“Delta Air Lines, Inc. (NYSE:DAL), a leading global airline, struggled from declining consumer confidence and slowing corporate travel due to uncertainty about tariffs, economic growth, and broader policy changes under a new administration. Longer term, we believe Delta’s operational and financial leadership versus its legacy peers should continue to benefit from corporate demand, international growth, a leading premium offering, a strong loyalty program, and a more disciplined airline industry.”

An aerial view of a commercial aircraft taking off from a coastal hub.

Delta Air Lines, Inc. (NYSE:DAL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Delta Air Lines, Inc. (NYSE:DAL) at the end of the first quarter, which was 84 in the previous quarter. While we acknowledge the potential of Delta Air Lines, Inc. (NYSE:DAL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Delta Air Lines, Inc. (NYSE:DAL) and shared the list of most undervalued industrial stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. 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. This article is originally published at Insider Monkey.