Delta Air Lines (NYSE:DAL) Shares Gap Down Following Weak Earnings

Posted by Brian Himes on Oct 9th, 2026

Shares of Delta Air Lines, Inc. (NYSE:DAL – Get Free Report) gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $82.14, but opened at $79.68. Delta Air Lines shares last traded at $80.7020, with a volume of 4,652,399 shares traded.

The transportation company reported $1.72 EPS for the quarter, missing the consensus estimate of $1.77 by ($0.05). The company had revenue of $17.59 billion for the quarter, compared to the consensus estimate of $17.65 billion. Delta Air Lines had a return on equity of 17.52% and a net margin of 5.79%.Delta Air Lines’s quarterly revenue was up 21.1% compared to the same quarter last year. During the same quarter last year, the business earned $1.71 EPS. Delta Air Lines has set its Q4 2026 guidance at 1.150-1.650 EPS and its FY 2026 guidance at 5.100-5.600 EPS.

Delta Air Lines Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 5th. Shareholders of record on Thursday, October 15th will be issued a dividend of $0.2150 per share. The ex-dividend date of this dividend is Thursday, October 15th. This represents a $0.86 dividend on an annualized basis and a dividend yield of 1.1%. Delta Air Lines’s dividend payout ratio (DPR) is presently 14.26%.

Key Stories Impacting Delta Air Lines

Here are the key news stories impacting Delta Air Lines this week:

Positive Sentiment: Delta said broad travel demand, healthy yields and its premium business remained strong. Third-quarter revenue increased 21.1% year over year to $17.59 billion, while CEO Ed Bastian reported no meaningful cracks in demand and suggested fares could continue rising. Delta Air Lines cuts 2026 forecast on fuel surge, but CEO says demand is still strong
Positive Sentiment: Management said Delta can absorb approximately $6 billion in additional fuel costs through pricing, operational strength and cost controls. The company also expects about $2.5 billion in 2026 free cash flow and plans to repay more than $2 billion of debt, supporting its balance-sheet recovery. Delta Air Lines Announces September Quarter 2026 Financial Results
Neutral Sentiment: Many analysts continue to support DAL, with most maintaining Buy ratings despite reducing estimates. That reflects confidence in Delta’s premium strategy and long-term competitive position, although near-term earnings expectations have weakened.
Neutral Sentiment: Delta is still evaluating whether to launch its planned Riyadh service later this month because of security concerns following attacks near the airport. Management said safety will determine the decision, creating a potential but uncertain route-related impact. Delta CEO: Safety is going to make the call on launching Saudi Arabia flight
Negative Sentiment: Adjusted third-quarter EPS was $1.72, below the approximately $1.77–$1.80 analyst consensus, while revenue also narrowly lagged estimates. Fuel expense reportedly climbed 62% from a year earlier, squeezing margins despite higher fares and strong demand. Delta Air Lines cuts profit forecast as fuel costs outpace fare gains
Negative Sentiment: Delta reduced 2026 EPS guidance to $5.10–$5.60, with the midpoint below prior expectations. Fourth-quarter EPS guidance of $1.15–$1.65 and revenue guidance of $17.5 billion also trail consensus estimates, keeping fuel prices and margin pressure as the main risks for DAL investors.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the stock. BMO Capital Markets dropped their target price on shares of Delta Air Lines from $105.00 to $100.00 and set an “outperform” rating for the company in a research report on Monday, September 28th. TD Cowen dropped their price objective on shares of Delta Air Lines from $105.00 to $101.00 and set a “buy” rating for the company in a report on Friday, October 2nd. JPMorgan Chase & Co. lifted their target price on shares of Delta Air Lines from $85.00 to $114.00 and gave the company an “overweight” rating in a research note on Monday, July 13th. Bank of America boosted their target price on Delta Air Lines from $93.00 to $100.00 and gave the stock a “buy” rating in a report on Wednesday, July 1st. Finally, Weiss Ratings raised Delta Air Lines from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, July 21st. Twenty-three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Delta Air Lines has a consensus rating of “Moderate Buy” and a consensus target price of $99.01.

Get Our Latest Stock Report on Delta Air Lines

Insider Activity

In other news, EVP Alain Bellemare sold 35,000 shares of the business’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $92.72, for a total transaction of $3,245,200.00. Following the completion of the sale, the executive vice president owned 95,025 shares in the company, valued at $8,810,718. The trade was a 26.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, President Peter W. Carter sold 39,900 shares of the company’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $92.98, for a total value of $3,709,902.00. Following the transaction, the president directly owned 424,704 shares in the company, valued at $39,488,977.92. This trade represents a 8.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 356,726 shares of company stock worth $33,081,037. 0.80% of the stock is owned by company insiders.

Institutional Trading of Delta Air Lines

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Markowski Investments bought a new position in shares of Delta Air Lines in the 2nd quarter valued at about $27,000. Timbuktu Capital Management LLC bought a new stake in shares of Delta Air Lines during the second quarter worth approximately $31,000. Elevation Wealth Partners LLC lifted its holdings in Delta Air Lines by 195.9% in the second quarter. Elevation Wealth Partners LLC now owns 358 shares of the transportation company’s stock valued at $34,000 after buying an additional 237 shares during the period. Atlas Wealth LLC acquired a new position in Delta Air Lines in the first quarter valued at approximately $35,000. Finally, Main Street Group LTD bought a new position in Delta Air Lines in the first quarter valued at approximately $36,000. 69.93% of the stock is currently owned by institutional investors and hedge funds.

Delta Air Lines Trading Down 1.8%

The business’s 50 day simple moving average is $83.61 and its 200-day simple moving average is $79.82. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.42 and a quick ratio of 0.35. The stock has a market capitalization of $53.07 billion, a P/E ratio of 13.38, a PEG ratio of 1.36 and a beta of 1.34.

Delta Air Lines Company Profile

(Get Free Report)

Delta Air Lines, Inc is a major U.S. airline that provides scheduled passenger and air freight transportation. The company serves destinations throughout the United States and connects customers to international markets across Europe, Asia, Latin America, Canada, Africa and the Caribbean through its own operations and regional airline partners.

Delta offers multiple classes of passenger service, including premium cabins and its main cabin, along with travel-related products such as vacation packages and loyalty benefits through the SkyMiles program.