Delta Air Lines vs United Airlines

This page provides a detailed comparison between Delta Air Lines and United Airlines, examining their distinct business models, financial performance, and market context. Investors can explore key differences and similarities to understand the companies' strategic positions within the aviation industry. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

DAL

Metric

UAL

$44.07B

Market Cap

$34.89B

18.13%

Potential Profit

25.27%

Buy

Analyst Rating

Buy

Why It's Moving

Delta Air Lines stock dips amid post-earnings caution despite business travel rebound.

Earnings report last week delivered a downbeat guidance, pressuring shares with a 3.5% drop over the last 7 days as markets digest softer expectations.
Business travel surge at the start of 2026 boosts high-margin corporate fares, positioning Delta and peers like United to capitalize on premium demand.
Valuation models flag DAL as undervalued at current levels around $68, trading at a steep discount to estimated intrinsic value amid recent price weakness.

Sentiment:

⚖️Neutral

United Airlines Stock Surges on Record Q4 Earnings Beat and Bullish 2026 Guidance

Q4 revenue hit record highs with the week ending January 4th as United's strongest ever, driven by surging ticketing and business sales that underscore premium travel strength.
CEO Scott Kirby emphasized sustained momentum, helping United stand out alongside Delta as top U.S. profit generators amid industry recovery.
Analysts upgraded targets like TD Cowen to $138 with buy ratings, betting on capacity discipline, product upgrades, and fuel management despite lingering contract risks.

Sentiment:

🐃Bullish

Delta Air Lines stock dips amid post-earnings caution despite business travel rebound.

Earnings report last week delivered a downbeat guidance, pressuring shares with a 3.5% drop over the last 7 days as markets digest softer expectations.
Business travel surge at the start of 2026 boosts high-margin corporate fares, positioning Delta and peers like United to capitalize on premium demand.
Valuation models flag DAL as undervalued at current levels around $68, trading at a steep discount to estimated intrinsic value amid recent price weakness.

Sentiment:

⚖️Neutral

United Airlines Stock Surges on Record Q4 Earnings Beat and Bullish 2026 Guidance

Q4 revenue hit record highs with the week ending January 4th as United's strongest ever, driven by surging ticketing and business sales that underscore premium travel strength.
CEO Scott Kirby emphasized sustained momentum, helping United stand out alongside Delta as top U.S. profit generators amid industry recovery.
Analysts upgraded targets like TD Cowen to $138 with buy ratings, betting on capacity discipline, product upgrades, and fuel management despite lingering contract risks.

Sentiment:

🐃Bullish

Investment Analysis

Delta Air Lines

DAL

Pros

Delta projects 20% year-over-year earnings growth to $6.50-$7.50 per share in 2026.
Q4 2025 revenue hit record $16.0 billion, surpassing consensus estimates.
Strong balance sheet features gross leverage of 2.4x, $4.6 billion free cash flow, and $35 billion unencumbered assets.

Considerations

Stock tumbled over 6% pre-market due to disappointing 2026 profit guidance.
Q4 revenue growth limited to 1.2% year-over-year amid government shutdown impacts.
Q1 2026 operating margin outlook of 4.5%-6% signals modest near-term profitability.

United Airlines

UAL

Pros

United maintains robust hub network driving consistent premium cabin demand.
Ongoing fleet modernisation enhances fuel efficiency and operational reliability.
Investment-grade balance sheet supports sustained capital returns to shareholders.

Considerations

Intense industry competition pressures fares and erodes yield growth.
High sensitivity to fuel price volatility impacts cost structure.
Cyclical exposure to economic downturns heightens demand fluctuation risks.

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