Is DAL a good stock to buy? We came across a bullish thesis on Delta Air Lines, Inc. on r/ValueInvesting by HaywardUCuddleme. In this article, we will summarize the bulls’ thesis on DAL. Delta Air Lines, Inc.’s share was trading at $81.83 as of June 11th. DAL’s trailing and forward P/E were 11.16 and 13.97 respectively according to Yahoo Finance.
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. DAL is presented as a materially undervalued airline whose share price continues to reflect an outdated perception of the business as a low-growth, highly cyclical carrier with fragile earnings and elevated balance-sheet risk. Trading at approximately $67 per share, Delta offers an estimated intrinsic value of $114, implying roughly 71% upside, while the market appears to assume long-term revenue contraction, modest profitability, and a persistent risk discount.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
The bullish thesis argues that Delta has evolved into a higher-quality business supported by a premium network, strong corporate travel relationships, industry-leading loyalty economics, and several ancillary businesses that diversify revenue beyond ticket sales. A key driver is the SkyMiles ecosystem, which generated $8.2 billion from its partnership with American Express in 2025 and continues to provide recurring, high-quality revenue.
Additional contributions from TechOps, cargo, vacation services, and refinery operations further strengthen revenue durability. The investment case also rests on margins, with the market pricing Delta as if long-term net margins will settle around 4.8%, while the company’s premium positioning, network scale, loyalty earnings, and disciplined cost structure support a more sustainable margin profile. Delta generated approximately $63.4 billion in revenue, $5.0 billion in operating income, and $4.6 billion in free cash flow during 2025, demonstrating substantial earnings power.
Improving liquidity, manageable debt maturities, and ongoing deleveraging efforts could further reduce the risk premium applied to the stock. Even a partial re-rating toward peer valuation multiples suggests meaningful upside, while stronger premium demand, corporate travel recovery, and continued loyalty monetization could drive even greater value creation.
Although risks remain from weak fares, rising costs, and macroeconomic pressures, the current valuation already reflects a pessimistic scenario, creating an attractive risk-reward profile for long-term investors.
Previously, we covered a bullish thesis on Delta Air Lines, Inc. (DAL) by jaunty_quant in October 2024, which highlighted undervaluation, technical momentum, and premium airline strength. DAL’s stock price has appreciated by approximately 61.11% since our coverage. HaywardUCuddleme shares a similar view but emphasizes stronger structural earnings power, SkyMiles-driven revenue durability, and higher intrinsic value.
Delta Air Lines, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held DAL at the end of the first quarter which was 67 in the previous quarter. While we acknowledge the risk and potential of DAL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DAL and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
