Demand for international
travel is at record highs in the US, according to a consumer survey conducted
by the Conference Board, despite the lingering conflict in Ukraine and
burgeoning conflict between Israel and Hamas.
Delta Air Lines (DAL) CEO Ed
Bastian expects the trend to continue.
"I think it's going to
continue to stay strong," Bastian said. "Some of the risks around
European travel into the next year I'd say is something that we're guarded
around. But we're not seeing any reductions in anticipated travel."
Delta has reported record
revenue in its quarterly results this year.
Bastian said he expects
fourth quarter revenue to set another record for Delta, even as he says the
industry is seeing signs of a more "normalized" pricing environment.
"We've got a very
healthy mix of revenue streams that are all contributing to that record
performance," he said.
Delta is planning for a new pocket of international
travel to be unlocked in China as well, and it recently announced a partnership
with China Eastern Airlines for 260 codeshare flights per week.
Why the DAL Weekly Options Trade was Originally
Holiday air travel bookings are expected to cap off a strong year for Delta Air Lines, Inc. (NYSE:DAL).
Delta estimates that 6.2 million to 6.4 million passengers will fly
using its service during the Thanksgiving holiday travel period between Nov. 17
and Nov. 28. For comparison to pre-pandemic demand, the airline carried 6.3
million passengers during the same period in 2019.
“I expect our fourth quarter to be a record for the company both in
revenues as well as in demand,” Delta Air Lines CEO Ed Bastian said.
Delta has reported record earnings in recent quarters, and the catalysts
have been multifaceted, as passengers seek premium travel experiences, embark
on journeys to international destinations, and exercise hybrid work policies in
locations away from the office.
“As a full-service carrier, whether it's international, business,
premium, we have a healthy mix of revenue streams all contributing to the
record performance,” Bastian said, echoing Southwest CEO Bob Jordan's comments.
TSA passenger throughput in 2023 so far has outpaced the travel numbers
in 2019 year to date. Volumes have surged as passengers travel for corporate
events, vacations, and Taylor Swift and Beyoncé concerts.
The DAL Weekly
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Lines Inc. is a major airline providing domestic and international air travel
services. Based in Atlanta, Georgia, Delta is one of the largest airlines in
the world, operating a fleet of over 900 aircraft that serves more than 325
destinations across six continents. Delta has a long history in the airline
industry. It is known for its exceptional customer service, operational
reliability and industry-leading innovation.
As of the
end of the fourth quarter of 2022, Delta Air Lines Inc. had a market
capitalization of $24.5 billion, with over 720 million outstanding shares. The
company has a strong financial position, with total revenue for the full year
2022 reaching $38.6 billion, an increase of 20% compared to the previous year.
Delta's net income for the same period was $2.7 billion, up from $1.2 billion
strong financial performance comes from several factors, including its
strategic focus on customer service, operational efficiency and technological
innovation. The company has invested heavily in its fleet and infrastructure
and is committed to delivering passengers a safe and comfortable travel
experience. Delta has also made significant investments in technology, such as
its Fly Delta app and biometric boarding, which have helped to streamline the
travel experience and improve customer satisfaction.
also committed to sustainable business practices, focusing on reducing its environmental
impact. The company has set ambitious goals to reduce carbon emissions by 50%
by 2050 and has invested in fuel-efficient aircraft and sustainable aviation
fuel. In addition, Delta has a comprehensive recycling program and has
implemented measures to reduce waste in its operations.
strong brand recognition, customer loyalty and strategic partnerships support
its competitive position in the airline industry. The company has alliances
with several international airlines, such as Air France-KLM and Virgin
Atlantic, enabling it to provide its customers with seamless travel
experiences. Delta also has a strong presence in key markets, such as New York,
Atlanta and Los Angeles, which have helped to drive its growth and
faces significant challenges in the airline industry, including intense
competition from other major airlines and the ongoing impact of the COVID-19
pandemic. The pandemic severely impacted the airline industry, with reduced
demand for air travel and significant disruptions to operations. Delta
responded to these challenges by implementing cost-cutting measures, such as
reducing its workforce, retiring older aircraft and focusing on its core
customer service and operational efficiency strengths.
Further Catalysts for
the DAL Weekly
we're entering the period of the new normal for travel,” Bastian said. “The big
revenge travel, I would say, is behind us, but the big pop has kind of come and
you're looking at pricing, as you're looking at trends, we're coming off a peak
last year, where people just needed to go,” Bastian added. “They didn't care
what they paid or where they went, they just needed to get out. We're now back
into a more normalized pricing environment, but we still have a great outlook
on our revenue.”
softening demand environment for value fares and a late summer market downturn
have created turbulence for air carrier stocks, Delta has managed to slightly
outpace industry competitors.
date, Delta stock is up 1.8%.
According to the issued ratings of 13
analysts in the last year, the consensus rating for Delta Air Lines stock is
Buy based on the current 12 buy ratings and 1 strong buy rating for DAL. The
average twelve-month price prediction for Delta Air Lines is $54.40 with a high
price target of $77.00 and a low price target of $39.00.
Delta Air Lines, Inc. has a
fifty-two week low of $30.60 and a fifty-two week high of $49.81. The company
has a quick ratio of 0.39, a current ratio of 0.44 and a debt-to-equity ratio
of 1.90. The stock has a market capitalization of $22.08 billion, a PE ratio of
6.34, a PEG ratio of 0.17 and a beta of 1.36. The business has a 50-day moving
average of $36.47 and a 200 day moving average of $39.58.