Delta Airlines Executive Summary

Delta (DAL) is one of the oldest and leading firms operating in international arena, its business involves air transportation and cargo throughout the United States and around the world. The company has its headquartered in Atlanta, Georgia. The global route network serves the majority domestic and international market. The airline serves over 180 million customers in 64 countries with industry leading customer support and operational excellence. By ensuring positive economic performance. Delta also has the highest profit share in air transportation industry by taking approximately 57% of the entire industry profits. K. Yamanouchi (2017) stated that Delta’s IOS also has the second highest market share in the transportation OS sector.
Delta has been able to maintain its margin because of its on time scheduled flight performance, respectable customer service and faithful customer base which are ready

to pay high prices for its worth product and services.
Delta also has provided reliable return on equity of approximately 35.59% to its shareholders, according to the website Stock Analysis on Net.com. Delta has smaller amount debt responsibility in its capital structure which makes it free from haphazard risk which is allied with financial agony that is the risk of company being bankrupt. Overall, the company is solvent and has lower debt than industry average. Delta has rigorous financial health and it has provided good return to the stockholders. The company provides motivation to make long term investment to have higher returns.
Risk and return are the two most important pieces evaluating any financial mechanism.

Return on financial mechanism is calculated by considering both cash flows received on instrument and capital appreciation on it, whereas risk is measured as standard deviation on those returns.
Most analysts agree Delta (DAL) is air transportation sales. Penetration into new markets, particularly the success of its new venture in Asia namely Seoul, Korea in June 2017 and Shanghai, China in July 2018. The mayor of Atlanta, Karim Reed stated that “This new direct route will open new business and cultural opportunities between Shanghai and Atlanta, and will support our thriving tourism industry. Currently, China ranks second for visitor volume to Atlanta, and we welcome the new travelers who will be able to come to our city or through our airport with this new direct route.”
This will largely determine if the company is able to produce strong year-over-year growth due to potential of open trade in these markets. The company can also explore new arenas, such as tourism and business

trade.
. In May 2014, the company announced a large capital return program in the form of share repurchases and dividend increases that rewarded shareholders. The expectation is that will be another similar announcement in 2015.
Delta’s trailing price-to-earnings ratio is 2.2x (just slightly above the Standard & Poor’s valuation) with expected growth to outpace the market’s, making it an extremely attractive valuation. “Global Ratings said it affirmed its ratings on Delta Air Lines Inc. (NYSE: DAL), including affirming its 'BB+' corporate credit rating, and revised the outlook to positive from stable.” According to Moody’s reporting agency, “Moody's Investors Service upgraded most of its debt ratings of Delta Air Lines, Inc. ("Delta"), including the Senior Unsecured to Baa3 from Ba3.”
A strong cash position on the balance sheet are cited as a catalyst for growth, or at the very least, continued share repurchases.
It is hard to compete with strong stock appreciation and anticipated continued strong growth, but there may be risks investors are overlooking.