BELLEMARE ALAIN sold $2.0M of DAL

Delta Air Lines (DAL) has risen 10% this year, trading at less than 12 times earnings. Despite guidance, fuel costs increased by $4B in 2026, lowering EPS estimates. Demand remains strong, and the company has reduced cyclical exposure. Management has slowed capacity growth in response to fuel prices.

Delta Air Lines (DAL) rose 13% year-to-date, beating Q2 EPS estimates and raising its dividend 15%. Las Vegas Sands (LVS) fell 32% after missing Q2 EPS due to low Macau rolling chip hold. Royal Caribbean (RCL) slipped 5%. Delta affirmed full-year guidance of $6.50-$7.50 EPS. Airlines show mixed performance, with Delta and United outperforming.

Frontier (ULCC) reported Q2 revenue of $1.28B, up 37.7% YoY, beating estimates. Despite strong results, its stock fell 10.4%. Other travel and vacation providers showed mixed Q2 results, with Target Hospitality (TH) up 9.4% and Hilton Grand Vacations (HGV) down 19.9% post-earnings. The sector's stocks are down 10.5% on average since earnings.

Delta Air Lines (DAL) and Grupo Aeroméxico (AERO) secured a regulatory win, preserving their cross-border partnership. Delta reported Q2 2026 revenue of $17.7B, a 9.4% operating margin, and $1.9B in operating income. Aeroméxico reported $1.5B in revenue but faced higher fuel costs, resulting in a 4.6% operating margin. Delta's stronger financial performance and institutional backing make it a better investment choice, according to the analysis.

Aeroméxico and Delta Air Lines won a U.S. court ruling allowing their joint venture to continue, preserving their ability to coordinate schedules, pricing, and routes. The decision overturns a U.S. Department of Transportation order seeking to end their cooperation agreement and antitrust immunity. Both airlines are reviewing the ruling and plan to provide updates on future developments.

Berkshire Hathaway increased its stake in Delta Air Lines (DAL) by 44% in Q2, now owning 8.7% of the company. Delta's revenue reached a record $17.7B, with an 8.8% operating margin. Analysts cut price targets to ~$105, citing slowing growth, but maintain positive ratings. DAL trades at 9.9x next-twelve-month earnings. Berkshire's investment contrasts with Warren Buffett's past airline skepticism.