DAL - Delta Air Lines Inc.

Delta has high debt, thin profit margins, and significant cyclical risks. The host's valuation shows only a 10.7% return including dividends, which he finds uncompelling given the risks and the airline industry's historical volatility.

Berkshire Hathaway added to its Delta Air Lines position during the quarter.

Berkshire made its biggest new investment in Delta. The company benefits from strong travel demand, premium revenue, and the SkyMiles/American Express partnership generating high-margin recurring revenue. However, airlines are sensitive to fuel prices and economic slowdowns.

Same as UAL: airlines likely to fall further due to high oil.

Showed strength today. If Delta breaks above $72.20, watch for continuation to the upside.

A $5.1 million big money trade in June 18, 2026 $65 strike put options suggests the trader believes Delta's rebound is overextended. Jet fuel prices have nearly doubled since the war began, and Delta's fuel bill could increase by over $2 billion through June. The stock failed to break recent highs around $76.

Earnings report tomorrow. Expected to see pressure from rising energy costs. Short-term sell-off possible if energy costs hurt results.

Earnings report on Wednesday will be interesting given massive increase in fuel costs from oil price surge.

Delta reports earnings Wednesday pre-market. Will be a key update for cruise lines and airlines given high oil and energy prices.

Analysts have a $76 fair value, 24 analysts call it a strong buy. Projecting 20% earnings growth in 2026. Shift toward premium travel and SkyMiles loyalty program are positives. However, the host has concerns about debt levels and cyclicality. Host personally prefers Southwest over Delta due to debt concerns.