Delta Air Lines (DAL) shares pushed higher on Tuesday after the U.S. airline raised its revenue guidance for the first quarter to high-single-digit growth. As investors reacted to the positive financial update, DAL rallied past its 200-day moving average (MA), indicating shifting momentum in favor of the bulls.
Versus its year-to-date high, Delta Air Lines stock remains down roughly 13%, reinforcing that there’s still time to build a position in it at a discount.
Why Delta Air Lines Stock Is Worth Buying Today
DAL’s update is bullish, given it suggests the air carrier is strongly positioned to weather higher jet fuel prices amid continued escalations between the U.S. and Iran.
Recent geopolitical tensions in the Middle East have raised fuel costs by a significant $400 million already, but Delta Air Lines continues to see earnings coming in at $0.70 in the current quarter.
This ability to maintain profitability amid external shocks demonstrates its industry-leading pricing power and operational resilience.
At a JPMorgan conference on March 17, the management cited “accelerated trends” in both consumer and corporate demand, essentially making DAL shares more compelling for long-term investors.
DAL Shares Are Historically Cheap to Own in 2026
Delta Air Lines shares are currently going for less than 8.5x earnings, a forward multiple that makes it cheaper to own compared not only to the broader market but to its own historical average as well.
The airline stock remains attractive also because it forecasts up to $4 billion in free cash flow for 2026, which it plans on splitting between debt reduction and shareholder returns.
DAL’s high-margin premium seat revenue and its lucrative American Express partnership continue to diversify income away from volatile “back-of-the-plane” fares.
Meanwhile, its maintenance, repair, and overhaul (MRO) business is a hidden gem — expected to grow revenue by a whopping 150% this year.
Wall Street Remains Constructive on Delta Air Lines
Investors can also take heart in the fact that Wall Street remains bullish as ever on DAL stock.
The consensus rating on Delta Air Lines sits at “Strong Buy” currently, with the mean price target of about $81 indicating potential upside of more than 25% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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