Delta Air LinesDAL +4.24%79 Interest Coverage is 3.32 as of Mar. 2026, which is 61% below its 10-year median of 8.57. GuruFocus rates DAL with a GF Score™ of 79/100 and a GF Value™ of $54.11 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 846 Transportation companies, Delta Air Lines ranks better than 62.77% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Delta Air Lines's
Operating Income
for the
three
months ended in Mar. 2026 was $501 Mil. Delta Air Lines's Interest Expense for the
three
months ended in Mar. 2026 was $-151 Mil.
Delta Air Lines's interest coverage for the quarter that ended in Mar. 2026 was 3.32.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Delta Air Lines's Interest Coverage or its related term are showing as below:
DAL'
s Interest Coverage Range Over the Past 10 Years
Min: 1.47 Med: 8.57 Max: 21.99
Current: 8.83
DAL's Interest Coverage is ranked better than 62.77% of 846
companies
in the Transportation industry
Industry Median: 5.67
vs DAL: 8.83
Delta Air Lines (NYSE:DAL) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Delta Air Lines Interest Coverage Related Terms
Delta Air Lines Interest Coverage Historical Data
* Premium members only.
The historical data trend for Delta Air Lines's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
DAL vs UAL, LUV, AAL: Interest Coverage Comparison
For the Airlines subindustry, Delta Air Lines's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Delta Air Lines Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, Delta Air Lines's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Delta Air Lines's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Delta Air Lines (DAL) has a Interest Coverage of 3.32 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Delta Air Lines and its competitors. This is 61% below median its historical median of 8.57. Over the past decade, Delta Air Lines' Interest Coverage has ranged from 1.47 to 21.99. According to the industry distribution chart, Delta Air Lines ranks #315 out of 846 companies in the Transportation industry, placing it in the top 37.2%.
Is Delta Air Lines' Interest Coverage too high?
Delta Air Lines' current Interest Coverage of 3.32 is 61% below median its 10-year median of 8.57. Over the past 10 years, this metric has ranged from a low of 1.47 to a high of 21.99. The Transportation industry median Interest Coverage is 5.67. Delta Air Lines' value of 3.32 is 41.4% below this industry median. Based on the distribution chart, Delta Air Lines ranks #315 out of 846 companies in the Transportation industry, which is above the industry midpoint. Overall, Delta Air Lines has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Delta Air Lines' Interest Coverage compare to UAL and LUV?
According to the Transportation industry distribution chart, Delta Air Lines ranks #315 out of 846 companies for Interest Coverage. This puts Delta Air Lines in the upper half of its industry. The industry median Interest Coverage is 5.67. Delta Air Lines' value of 3.32 is 41.4% below this benchmark. Historically, Delta Air Lines' own Interest Coverage has ranged from 1.47 to 21.99 over the past decade. While the company's 10-year median is 8.57 vs. the industry median of 5.67, Delta Air Lines has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.67, based on 846 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Delta Air Lines's current Interest Coverage of 3.32 is 41.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Delta Air Lines and its competitors. For the Transportation industry, the median Interest Coverage is 5.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Delta Air Lines's current Interest Coverage is 3.32, which is 61% below median its own 10-year median of 8.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Delta Air Lines stock overvalued right now?
Based on GuruFocus' analysis, Delta Air Lines (DAL) is currently considered Significantly Overvalued. The stock's GF Value™ is $54.11, compared to a current price of $90.40 — trading 67.1% above its estimated fair value. The current Interest Coverage is 3.32, which is 61% below median its 10-year median of 8.57 and 41.4% below the Transportation industry median of 5.67. Delta Air Lines' overall GF Score™ is 79/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Delta Air Lines (DAL), the current Interest Coverage is 3.32 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Delta Air Lines (DAL) Overvalued in 2026?
Based on GuruFocus' analysis, Delta Air Lines stock appears to be overvalued.
The current stock price of $90.40 is trading 67.1% above its estimated GF Value™ of $54.11.
GuruFocus considers Delta Air Lines to be Significantly Overvalued.
Key valuation signals for DAL:
Interest Coverage: 3.32 (61% below median its 10-year median of 8.57)
GF Value™: $54.11 vs. price of $90.40 (67.1% above fair value)
Industry Position: 41.4% below the Transportation median (#315 of 846)
No single metric tells the full story. See the DAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Atlanta-based Delta Air Lines is one of the world's largest airlines, with a network of over 300 destinations in more than 50 countries. Delta operates a hub-and-spoke network, where it gathers and distributes passengers across the globe through its biggest hubs in Atlanta, New York, Salt Lake City, Detroit, Seattle, and Minneapolis-St. Paul. Delta has historically earned most of its international revenue and profits from flying passengers over the Atlantic Ocean.
79GF Score
Get the complete analysis for DAL
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