Delta Airlines DAL

Delta Airlines has demonstrated a remarkable turnaround, reporting a record Q1 2026 revenue of $14.2 billion and a significant 42% rise in pre-tax income, exceeding analysts' expectations. This resurgence comes despite challenges such as rising fuel costs and a massive debt load of $35.55 billion. Berkshire Hathaway's recent $2.6 billion investment further underscores confidence in Delta's recovery and growth potential, as the airline projects earnings per share between $6.50 and $7.50 for 2026. However, Delta faces ongoing operational challenges, including flight cancellations and the potential impact of an ITC investigation on its partnership with Joby Aviation for eVTOL aircraft. Overall, analysts maintain a positive outlook due to Delta's strategic initiatives and strong market position.