Delta Air LinesDAL +4.53%79 Operating Margin % is 3.16% as of Mar. 2026, which is 67% below its 10-year median of 9.62. 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 1,007 Transportation companies, Delta Air Lines ranks better than 56.01% on this metric.
Delta Air Lines (NYSE:DAL) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Delta Air Lines Operating Margin % Related Terms
Delta Air Lines Operating Margin % Historical Data
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The historical data trend for Delta Air Lines's Operating Margin % 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.
DAL vs UAL, LUV, AAL: Operating Margin % Comparison
For the Airlines subindustry, Delta Air Lines's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Delta Air Lines's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Delta Air Lines's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Delta Air Lines's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Operating Margin % of 3.16% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Delta Air Lines and its competitors. This is 67% below median its historical median of 9.62. According to the industry distribution chart, Delta Air Lines ranks #443 out of 1007 companies in the Transportation industry, placing it in the top 44%.
Is Delta Air Lines' Operating Margin % too high?
Delta Air Lines' current Operating Margin % of 3.16% is 67% below median its 10-year median of 9.62. The Transportation industry median Operating Margin % is 7.37. Delta Air Lines' value of 3.16% is 57.1% below this industry median. Based on the distribution chart, Delta Air Lines ranks #443 out of 1007 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' Operating Margin % compare to UAL and LUV?
According to the Transportation industry distribution chart, Delta Air Lines ranks #443 out of 1007 companies for Operating Margin %. This puts Delta Air Lines in the upper half of its industry. The industry median Operating Margin % is 7.37. Delta Air Lines' value of 3.16% is 57.1% below this benchmark. While the company's 10-year median is 9.62 vs. the industry median of 7.37, 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 Operating Margin % for a Transportation company?
The median Operating Margin % among Transportation companies is 7.37, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Delta Air Lines's current Operating Margin % of 3.16% is 57.1% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Delta Air Lines and its competitors. For the Transportation industry, the median Operating Margin % is 7.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Delta Air Lines's current Operating Margin % is 3.16%, which is 67% below median its own 10-year median of 9.62. 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 $90.65 — trading 67.5% above its estimated fair value. The current Operating Margin % is 3.16%, which is 67% below median its 10-year median of 9.62 and 57.1% below the Transportation industry median of 7.37. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Delta Air Lines (DAL), the current Operating Margin % is 3.16% 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 $90.65 is trading 67.5% above its estimated GF Value™ of $54.11.
GuruFocus considers Delta Air Lines to be Significantly Overvalued.
Key valuation signals for DAL:
Operating Margin %: 3.16% (67% below median its 10-year median of 9.62)
GF Value™: $54.11 vs. price of $90.65 (67.5% above fair value)
Industry Position: 57.1% below the Transportation median (#443 of 1007)
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
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