Unknown Billionaire Phill Gross’ 10 Stock Picks with Huge Upside Potential

2. Delta Air Lines, Inc. (NYSE:DAL)

Number of Hedge Fund Holders as of Q4: 84

Adage Capital Management’s Equity Stake: $184.78 Million 

Upside Potential as of May 2: 44.58%

Delta Air Lines, Inc. (NYSE:DAL) is one of the leading U.S. airlines, operating nine hubs with Hartsfield–Jackson Atlanta International Airport as its largest in passenger volume and flight departures. In the face of shifting economic conditions during the first quarter of 2025, the airline managed to deliver steady profitability, aligning with results from the previous year. Delta reported operating revenue of $14.0 billion and an operating income of $569 million, reflecting a 4.0 percent operating margin. Earnings per share stood at $0.37, while the company generated $2.4 billion in operating cash flow. Delta also made significant progress on its financial obligations, with $531 million in payments toward debt and finance lease obligations, bringing total outstanding debt to $15.8 billion at the quarter’s end.

CEO Ed Bastian acknowledged the quarter’s unexpected challenges but praised the workforce’s dedication, emphasizing Delta Air Lines, Inc. (NYSE:DAL)’s position of strength moving forward. He projected a June quarter profitability between $1.5 billion and $2 billion. However, he noted the economic uncertainty makes it premature to revise the full-year outlook. Despite the cautious tone, Bastian expressed confidence in Delta’s capacity to deliver solid profitability and free cash flow for the remainder of the year, citing the company’s proactive strategy, improved cost environment from declining fuel prices, and a focus on financial durability and differentiation in the competitive airline industry.

Although Delta Air Lines, Inc. (NYSE:DAL) expects total revenue in the June quarter to range from 2% below to 2% above the same period last year, the airline sees continued resilience in premium, loyalty, and international segments. This strength is helping offset some softness in domestic and main cabin performance. Hauenstein noted that while 2025 is unfolding differently than initially expected, Delta Air Lines, Inc. (NYSE:DAL) remains focused on long-term strategic goals while adapting to evolving market conditions.