Bernstein SocGen Reiterates Outperform Rating on Delta Air Lines (DAL)

Bernstein SocGen Group analyst David Vernon reiterated an Outperform rating and $81.00 price target on Delta Air Lines (NYSE: DAL).

The analyst commented: "Updating estimates and lowering FY26 on fuel; We update our DAL estimates to reflect the latest company guidance update from March, new fuel price assumptions, and stronger MRO top line performance. Our out-year estimates, $81 PT, and Outperform rating are all unchanged, as the solid long-term outlook remains intact and may get stronger as the Iran conflict squeezes out capacity.

What changed in our model / where we stand vs. consensus. We trim 1Q26 capacity and have CASM-ex a bit worse than guide midpoint (Exhibit 2) as TSA mayhem / LGA incident likely worsened things a bit since DAL’s last update. Fuel prices are also creating downside to our 1H26 numbers vs. the street’s (Exhibit 4, Exhibit 5). A 1H26 likely weaker than we previously anticipated weighs on our unchanged 2H26 outlook (which includes moderating fuel prices vs. 1H), and results in our FY26 estimate coming down by 7%. At $6.05, we now sit below the Jan. guide of $6.50-$7.50, which wasn’t reiterated at the March conference and seems likely to shift down (Exhibit 3). Nonetheless, we’re still ahead of the street’s $5.94 (+2%) with a stronger 2H outlook, and ~6% ahead of consensus in FY27."

For an analyst ratings summary and ratings history on Delta Air Lines click here. For more ratings news on Delta Air Lines click here.

Shares of Delta Air Lines closed at $66.78 yesterday.

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