Advantages and disadvantages of investing in Delta Air Lines stock
On the positive side, Delta is a major player in the airline industry with a well-established brand and a significant market share. Like other airlines, Delta generates revenue from various sources, including premium cabin tickets and loyalty programs, but it also benefits from lucrative partnerships with companies like American Express (AXP +0.96%).
Delta has been actively reducing its debt, which is improving its financial flexibility. Despite some fluctuations, demand for air travel, particularly in premium cabins and on international routes, remains strong.
Now for the cons: The airline industry is highly cyclical, meaning Delta's performance is closely tied to the overall economic cycle. During economic downturns, travel demand typically declines, hurting airline revenues and profits. Fuel price volatility, which is influenced by global events and geopolitical instability, further adds to the cyclicality.
Delta carries a substantial amount of debt, which can be a concern during periods of economic uncertainty or rising interest rates. However, strength in its premium and first-class ticket categories, as well as continued business travel, has helped offset some of those headwinds.
ETFs with exposure to Delta Air Lines
If you don't want to buy whole shares of Delta Air Lines, there are other ways to gain exposure to this company without purchasing the individual stock. One option can be to purchase an exchange-traded fund (ETF), which can allow you to put your capital into numerous stocks across various sectors at one time. Some ETFs are structured to track the returns of a particular index or sector, while others are designed to exceed that performance.
ETFs that offer exposure to Delta Air Lines include:
- iShares Core S&P 500 ETF (IVV +0.25%)
- SPDR S&P 500 ETF Trust (SPY +0.25%)
- U.S. Global Jets ETF (JETS -0.25%)
- SPDR S&P Transportation ETF (XTN +0.88%)
Will Delta Air Lines stock split?
Delta Air Lines has split its stock a few times in its company history. These splits include a 2-for-1 split in December 1981 and a 2-for-1 split in November 1998. As of mid-2026, Delta hadn't made any announcements of a pending or expected stock split. And considering Delta hasn't traded above $100 a share since it was relisted nearly 20 years ago, a stock split doesn't seem likely either.
The bottom line on Delta Air Lines
Delta Air Lines has adjusted and persisted through the last few years despite cyclicality and ongoing macro headwinds. The company remains profitable and is steadily expanding revenue, while its cash position looks to be in good shape.
While it takes a certain level of risk appetite to invest in the airline industry, whether you want to buy individual shares of Delta Air Lines stock or own it through an ETF, becoming part-owner of this airline industry behemoth could turn out to be a good move five to 10 years down the line.
