Without a doubt, and for all I share my viewpoint. The premier airline in its class and best of breed is Delta! In all the other classes delta ranks in the top 3. Delta is a winner for all, bears make money and bulls make money. Investor's are and will be rewarded. Just hold to your shares as you are riding a winner. Delta was a 60ish a share in Feb-Mar and now with pax counts up and will get continue rising facing a quick uptick to 40 before Delta's 2nd quarter's result. My research indicates revenue on the rise and cost cutting measures are down. Add passengers now rising and additional flights to make up for the unoccupy middle seat strategy. Additional 1000 flights for newly open routes, no doubts Delta is leading the pact. Enjoy your shares as monetary blessings are on your way.
d
Hey did a bit more research on DAL, and I thought I'd post my analysis. I think given the data we have that this will be another solid earnings quarter, and I think that the current analyst consensus for Q4 and next year appears VERY conservative, likely due to concerns over operating costs and the impending return of 737 and airbus tariffs:
The past 3 quarters Delta has smashed expectations. Revenue has grown over 5% over last year, resulting in large increases in operating profit and EBITDA of over 20% due to their large fixed costs. This quarter appears no different to me from the 2 operating reports we have. The first one from October had exceptional passenger growth of 5.8% over last year, this latest November one growth was more moderate at 1.7% and there was concern about a dip in load factor, but keep in mind that Delta has been expanding their fleet and that we are comparing to an exceptional 2018 November, where passenger growth was abnormal over 2017 at +4%. Add to this that we already know oil prices stayed pretty low until just a few days ago, so fuel costs will be low for Q4 again as Delta has likely already filled their orders for crude for the year and beyond to use in their refineries, and also add to this the fact that share repurchases over the past year have been over 6% of all outstanding shares. Delta is buying a lot of their own stock at these levels when it dips, and likely did again this quarter when it dipped to $51-53 range. Also, the recent announcements that the Boing 737 will continue to be grounded until Q2 of 2020 bodes will for Delta continuing to take market share and experience record passengers. And then we have the upcoming expansions and capital investments: expansions of multiple terminals, many new plane orders, new routes to Europe/Asia, LATAM partnership going live this December...Delta is on track to capitalize well in this market of growing air demand.
However...analysts appear extremely mixed on earnings growth. Their revenue consensus projections seem in line with what Delta has demonstrated at 5% growth for next 2 quarters and 3.8% for next year, but their eps projections are very low, indicating nearly flat expectations with last year and in 2020, showing analysts expect a very large increase in operating costs even while Delta continues to expand and take significant market share. Now, we do know that Delta raised wages and airbus tariffs are in effect, but it is debatable if operating costs will rise to this extreme degree imo. For instance, analysts currently project this Q4 will show 5.5% increase in revenue over 2018 Q4, but only a mere 6.2% increase in eps. Given that share repurchases over the past year have actually also been a bit over 6% as well, this indicates they think net profits will be flat, indicating an expected huge increase in operating costs. Similar projections are made in 2020 as well. I think this is unlikely for several reasons, but here are a few: airbus tariffs are being mitigated by the Mobile plant in Alabama, and airbus is expanding capacity there. There is also no reason to believe they will be in effect indefinitely. The point of the tariffs was to bring Europe to the negotiating table regarding subsidies to airbus and other tariff issues. It may take a while, but it will eventually be resolved imo. Also, with Delta having already demonstrated earlier in the year that they think this level is undervalued enough for substantial share repurchases, I am fairly sure that if they continue to trade at 7-8 PE they will keep buying shares at an accelerated rate. This alone will lift eps, but I am also doubtful management would be so profligate with ramping up capital costs that they won't be able to capitalize at all on a 5%+ revenue increase on the bottom line. This has not been their MO in the past, which is focused on returning value to both employees and shareholders. I expect moderate continued earnings growth, though not as great as the past 2 quarters which benefitted from rock bottom crude prices. When this is demonstrated, Delta should also eventually return to its historical PE evaluation, which is more like 10 from my research, not the 7-8 they have been trading at this fall. The only reason they would trade here while making record profits and revenues is if people expect their current performance to be transient. So these next 2 quarters will be key in demonstrating that they can keep up the momentum. Regardless, I feel very good holding long here. There are large potential capital gains if DAL returns to historical evaluations. Airline business is expected to continue to grow over the next few years and DAL is a strong player actively taking market share and expanding. Also, they have an excellent recent track record with raising the dividend substantially every summer for several years and conducting share repurchases. This is an excellent entry point and nice dividend while you wait!
J
Investors will rotate into airlines again, have patience. Major bullish catalysts are coming in July.. -Data is showing July 4th weekend will break post-pandemic TSA travel numbers by a decent margin. - United States will loosen international travel restrictions in July or early August. - Highly anticipated airlines earnings mid July. - Transatlantic routes will most likely open end of July as UK reopens - July on average is the busiest travel month of the year. - Increase in oil prices are being countered by higher demand for tickets and ticket prices.
$DAL $AAL $UAL $SAVE $JETS $JBLU $ALK $LUV
M
This makes no sense at all. Never seen a stock take a dive on information that we really don't have yet. I mean 12 dollars a share down in 2 weeks.
Marriott increased profits by 75%. Travel is increasing, good for airlines. $LUV $DAL
A
500K+ passing through TSA yesterday. A new record high or roughly 20% increase compared to Thursday last week. This number will keep climbing!
D
I’m in as a long in Delta. DAL serves over 300 destinations in over 50 countries. China is not the only market they serve and this recent sell off, though understandable, is a bit overdone. Let’s put this in perspective. Given that oil prices, the major driver to jet fuel costs, have come down from $59 to $52 per barrel during this coronavirus outbreak, all of the airlines will see a large cost savings which may very well exceed the lost revenues from discontinued China flights. As long as the coronavirus is contained in large part within China, world travel demand will see just a minor impact. People will simply go to other places to vacation or do business. The world pauses to these types of disease epidemics, agencies react and confidence to continue normalcy is eventually restored.
A
"break even by next year" is a conservative estimate. At the rate customers are coming back based on TSA daily numbers, it might be sooner than that.
R
Dont trust the news. Big boys missed this run, and not just airline stocks. They have been waiting for the 2nd dip (DOW to drop below 19000) which doesnt seem to happen, to buy. So when there is an oportunity like this, they will trash the stocks. We just have to play along with them, let them do the work for us. Watch for the next couple days. There will be tons of bad news. They will push the market down as much as they can. You just read for fun and get your cash ready. When all of the sudden there is no more good/bad news, that is when you buy. One, two weeks later , all of the sudden a bunch of good news come back. I call it the WAVE theory and it has been proven to work for me.
H
Delta Air Lines will receive 20% of new shares of Aeromexico under the Mexican carrier's Chapter 11 bankruptcy restructuring plan, according to a U.S. court document filed late on Friday.
The travel demand is very high right now, and it will continue all the way until end of next year, the only thing that pull back all airlines stock is just the fuel price - it's more like an excuse for the analyst to cast a gloomy future for airlines stock, airlines company will hedge fuel price for sure, they are not first day in business. Besides, fuel price is something that government can interfere, this is not pandemic, OPEC has to do something about it. $AAL $UAL $DAL are all in bargain price now, buy at this price and just hold on to it, and you will have handsome return next year.
A
Will be my first long term. Don't plan to sell without %100 return
a
Such mixed sentiments about airline stocks. Some are going short, some long. Chart on support level, ready to bounce, ready to break support to $39! What’s going on? Airports are packed, flights are full, ticket prices are soaring, oil is slowly dropping, major airlines will be profitable in July. Let’s go long people. Let’s break through all the way to $56. Has to happen next month!
J
On Friday’s broadcast of the Fox News Channel’s “Fox News @ Night,” Rep. Chip Roy (R-TX) said that Georgia’s election law requires identification the same way Major League Baseball, Delta Airlines, and American Airlines require people to show ID.
Roy said, “It requires voter identification to be able to be used in voting. The same kind of [photo] identification, by the way, that Major League Baseball requires when you pick up tickets, whether it’s in Atlanta or, by the way, in Fenway Park in Boston or Yankee Stadium in New York. They have no problem with [photo] ID. Of course, neither does Delta Airlines or American Airlines have a problem with [photo] ID.”
A
544,046 passing through TSA yesterday. New record high or 10% increase compared to last Sunday.
C
Well... that was exceptionally encouraging. I bought in at $26.41 and within 24 hours i'm up over $2 per share. My younger self would've taken the money and ran but i'm a bit past those habits. One reason I was hanging back was because I travel internationally a lot - with the coronavirus pandemic being the exception of course - and I was waiting to see if it would affect DAL stock when EU countries reopened their borders to travel. That starts today, and there has been a great deal of press coverage about it this past week so I took the plunge - and to quote George Peppard: "I love it when a plan comes together". DAL has a lot of affiliate partners in the Eu so I expected their stock to jump if the June 3 plan was enacted and luckily for me (us) it was. Here's to all of us in this and mad props to DAL for the best possible start to the recovery. And yes, international travel is going again with anumber of resrictions in place depending on the country of origin; Brasil, China etc. of course being a no-go. It is perfectly possible to travel outside the US now if you have your affairs in order and manage the trip ahead of time.
H
Deutsche Bank analyst Michael Linenberg has launched a "short-term catalyst call buy" on Delta Air Lines Inc.'s stock Friday, saying he believes the underperformance so far this year will flip to outperformance in the coming months.
An analyst that makes sense rare to find nowadays lol
W
pre market for ALL the airlines looks gloomy. What is the deal?
M
Analysis of DELTA’s Balance sheet, income statements, cash flow and audit reports. Its by far most strongest and well positioned than any other airlines. Brand name is recognized all around the world. Southwest might be strong in terms of balance sheet and low EBITDA and leverage advantage but No comparison with delta. All forces in airlines industry are betting on delta.
D
I only invested $92 dollar a month ago in this stock and I make back $44 dollars this was my first time investing and I'm making moves
The past 3 quarters Delta has smashed expectations. Revenue has grown over 5% over last year, resulting in large increases in operating profit and EBITDA of over 20% due to their large fixed costs. This quarter appears no different to me from the 2 operating reports we have. The first one from October had exceptional passenger growth of 5.8% over last year, this latest November one growth was more moderate at 1.7% and there was concern about a dip in load factor, but keep in mind that Delta has been expanding their fleet and that we are comparing to an exceptional 2018 November, where passenger growth was abnormal over 2017 at +4%. Add to this that we already know oil prices stayed pretty low until just a few days ago, so fuel costs will be low for Q4 again as Delta has likely already filled their orders for crude for the year and beyond to use in their refineries, and also add to this the fact that share repurchases over the past year have been over 6% of all outstanding shares. Delta is buying a lot of their own stock at these levels when it dips, and likely did again this quarter when it dipped to $51-53 range. Also, the recent announcements that the Boing 737 will continue to be grounded until Q2 of 2020 bodes will for Delta continuing to take market share and experience record passengers. And then we have the upcoming expansions and capital investments: expansions of multiple terminals, many new plane orders, new routes to Europe/Asia, LATAM partnership going live this December...Delta is on track to capitalize well in this market of growing air demand.
However...analysts appear extremely mixed on earnings growth. Their revenue consensus projections seem in line with what Delta has demonstrated at 5% growth for next 2 quarters and 3.8% for next year, but their eps projections are very low, indicating nearly flat expectations with last year and in 2020, showing analysts expect a very large increase in operating costs even while Delta continues to expand and take significant market share. Now, we do know that Delta raised wages and airbus tariffs are in effect, but it is debatable if operating costs will rise to this extreme degree imo. For instance, analysts currently project this Q4 will show 5.5% increase in revenue over 2018 Q4, but only a mere 6.2% increase in eps. Given that share repurchases over the past year have actually also been a bit over 6% as well, this indicates they think net profits will be flat, indicating an expected huge increase in operating costs. Similar projections are made in 2020 as well. I think this is unlikely for several reasons, but here are a few: airbus tariffs are being mitigated by the Mobile plant in Alabama, and airbus is expanding capacity there. There is also no reason to believe they will be in effect indefinitely. The point of the tariffs was to bring Europe to the negotiating table regarding subsidies to airbus and other tariff issues. It may take a while, but it will eventually be resolved imo. Also, with Delta having already demonstrated earlier in the year that they think this level is undervalued enough for substantial share repurchases, I am fairly sure that if they continue to trade at 7-8 PE they will keep buying shares at an accelerated rate. This alone will lift eps, but I am also doubtful management would be so profligate with ramping up capital costs that they won't be able to capitalize at all on a 5%+ revenue increase on the bottom line. This has not been their MO in the past, which is focused on returning value to both employees and shareholders. I expect moderate continued earnings growth, though not as great as the past 2 quarters which benefitted from rock bottom crude prices. When this is demonstrated, Delta should also eventually return to its historical PE evaluation, which is more like 10 from my research, not the 7-8 they have been trading at this fall. The only reason they would trade here while making record profits and revenues is if people expect their current performance to be transient. So these next 2 quarters will be key in demonstrating that they can keep up the momentum. Regardless, I feel very good holding long here. There are large potential capital gains if DAL returns to historical evaluations. Airline business is expected to continue to grow over the next few years and DAL is a strong player actively taking market share and expanding. Also, they have an excellent recent track record with raising the dividend substantially every summer for several years and conducting share repurchases. This is an excellent entry point and nice dividend while you wait!
-Data is showing July 4th weekend will break post-pandemic TSA travel numbers by a decent margin.
- United States will loosen international travel restrictions in July or early August.
- Highly anticipated airlines earnings mid July.
- Transatlantic routes will most likely open end of July as UK reopens
- July on average is the busiest travel month of the year.
- Increase in oil prices are being countered by higher demand for tickets and ticket prices.
$DAL $AAL $UAL $SAVE $JETS $JBLU $ALK $LUV
$LUV $DAL
Don't plan to sell without %100 return
Roy said, “It requires voter identification to be able to be used in voting. The same kind of [photo] identification, by the way, that Major League Baseball requires when you pick up tickets, whether it’s in Atlanta or, by the way, in Fenway Park in Boston or Yankee Stadium in New York. They have no problem with [photo] ID. Of course, neither does Delta Airlines or American Airlines have a problem with [photo] ID.”
An analyst that makes sense rare to find nowadays lol
Its by far most strongest and well positioned than any other airlines. Brand name is recognized all around the world. Southwest might be strong in terms of balance sheet and low EBITDA and leverage advantage but No comparison with delta. All forces in airlines industry are betting on delta.