Berkshire Hathaway's investment in Delta Air Lines has gained $789,421,512.48 since the end of the first quarter, marking a significant win for new CEO Greg Abel. The stake, which consists of 39,809,456 shares, was valued at $2,646,532,634.88 at the close of the first quarter and has since risen to $3,435,954,147.36. This move contrasts with the strategy of Warren Buffett, who historically avoided airline stocks, once calling the sector a "bottomless pit" in 2007 due to its capital-intensive nature and low returns.

Abel's Strategic Shift

Abel's purchase of Delta stock was one of his first major moves after taking over the CEO role. While the exact purchase price remains undisclosed, shares traded between $55.28 and $76.34 during the first quarter. The position ranks as the 13th largest in Berkshire Hathaway's investment portfolio. Buffett had previously invested in major airlines in the 2020s before selling at a loss, making Abel's successful bet a notable departure from past performance.

Delta's Financial Performance

Delta Air Lines has demonstrated strong operational momentum, beating analyst estimates for earnings per share in seven consecutive quarters. The company has also surpassed revenue expectations for over 20 straight quarters, driven by robust demand despite industry challenges such as rising fuel prices linked to Middle East tensions.

Portfolio Valuation and Future Disclosures

The table below details the performance of Berkshire Hathaway's Delta Air Lines holding:

Berkshire Hathaway is scheduled to submit its second-quarter 13F filing by Aug. 14. This document will reveal whether the conglomerate has maintained, increased, or reduced its position in Delta during the quarter, providing further insight into Abel's investment strategy.

Delta Air Lines Inc reported second-quarter 2026 results that topped Wall Street estimates for adjusted earnings and revenue, driven by robust summer travel demand, though profitability faced pressure from record fuel costs. Adjusted earnings came in at $1.56 per share, topping the $1.47 estimate, while GAAP diluted earnings fell 25% year over year to $2.44 per share. Operating revenue rose 19% to $19.76 billion, exceeding the $17.53 billion estimate, while adjusted operating revenue increased 13.9% to a record $17.67 billion on about 1% capacity growth. Despite the revenue surge, the company navigated a 77% increase in adjusted fuel expenses to $4.41 billion, which impacted operating margins.

Financial Performance Breakdown

Delta's ability to exceed revenue estimates highlights effective capacity management, but rising costs, particularly fuel, weighed on earnings. Adjusted operating income declined 24% to $1.56 billion, while the adjusted operating margin narrowed to 8.8% from 13.3% in the prior year. Adjusted net income fell 26% to $1.03 billion. The airline absorbed the highest quarterly fuel expense in its history, with the adjusted fuel price rising 75% to $3.93 per gallon.

Revenue Streams and Operational Metrics

Passenger revenue increased 13% to $15.61 billion, supported by a 17% rise in premium-product revenue to $6.92 billion and an 8% increase in main-cabin revenue to $6.85 billion. Domestic revenue climbed 15%, while Atlantic revenue rose 8%, Latin America revenue increased 4%, and Pacific revenue advanced 15%. Adjusted unit revenue grew 12.4%, while passenger yield increased 12%. Diversified revenue streams accounted for 61% of adjusted revenue, up from 59% a year earlier, with cargo revenue rising 39%, MRO revenue increasing 32%, and loyalty revenue growing 19%.

Balance Sheet and Outlook

Delta ended the quarter with $4.67 billion in cash and $7.7 billion in liquidity. Debt and finance lease obligations totaled $13.95 billion, down 7% year over year, while adjusted net debt fell by $709 million from the end of 2025 to $13.59 billion. The company affirmed its full-year adjusted EPS guidance of $6.50 to $7.50, compared with the $5.93 estimate, and maintained free cash flow guidance of $3 billion to $4 billion. For the third quarter, Delta forecasts adjusted earnings of $2.00 to $2.50 per share, versus market estimates of $1.99, and an operating margin of 11% to 13%. The company also announced a 15% dividend increase beginning in the September quarter.

Analyst Reactions

Following the earnings announcement, several analysts adjusted their price targets for Delta Air Lines. Citigroup analyst John Godyn maintained the stock with a Buy rating and raised the price target from $106 to $110. JP Morgan analyst Jamie Baker maintained the stock with an Overweight rating and raised the price target from $85 to $114. Morgan Stanley analyst Ravi Shanker maintained the stock with an Overweight rating and boosted the price target from $115 to $125.