Group 1 - Delta Air Lines (DAL) stock is trading at a discount with a forward 12-month P/S of 0.67X compared to the industry's 1.29X, making it attractive to investors [2] - The recovery of air travel demand post-pandemic is supporting the growth of airline stocks like Delta, with strong demand noted particularly in leisure travel and a notable comeback in business travel [3][4] - Delta's CEO expects 2025 to be the carrier's most successful financial year, with adjusted earnings projected to exceed $7.35 per share, indicating over 19% year-over-year growth [4] Group 2 - Revenue growth and margin expansion are anticipated to drive profitability, with Delta expecting to generate over $4 billion in free cash flow in 2025, supporting debt reduction efforts [5] - Analysts are becoming optimistic about DAL stock, with upward revisions in earnings estimates [6] - DAL shares have outperformed its industry peers and the S&P 500 index over the past six months, driven by strong air travel demand [8] Group 3 - Delta's management resumed quarterly dividends of 10 cents per share last year and announced a 50% increase in June 2024, raising the quarterly dividend to 15 cents per share [10] - The airline ended Q4 2024 with cash and cash equivalents of $3.1 billion, significantly higher than its current debt level of $2.2 billion, indicating a strong liquidity position [11] - The Wall Street average price target for DAL is $81.88 per share, suggesting a 26.5% upside from current levels [14] Group 4 - Despite facing high labor costs, DAL is well-positioned to navigate challenges due to upbeat air travel demand and shareholder-friendly initiatives [15] - DAL stock is characterized by a mix of value, growth potential, and resilience, making it a compelling addition to investment portfolios [16]

Fuel Costs - Fuel costs represented 19%, 21%, and 24% of operating expenses in 2024, 2023, and 2022, respectively[121]. - The average fuel price per gallon ranged from a high of $4.25 in June 2022 to a low of $2.29 in November 2024[121]. - A one cent increase in jet fuel cost per gallon results in approximately $40 million of additional annual fuel expense[325]. Debt and Interest Rates - As of December 31, 2024, the company had $14.5 billion of fixed-rate debt and $0.9 billion of variable-rate debt[327]. - A 100 basis point increase in average annual interest rates would decrease the estimated fair value of fixed-rate debt by $620 million[327]. - As of December 31, 2024, total debt amounted to $15,347 million, a decrease from $18,610 million in 2023[441]. - The company extinguished $844 million in debt during 2024, resulting in a $39 million loss on extinguishment recorded in non-operating expenses[442]. - The fair value of outstanding debt as of December 31, 2024, was $15,300 million, compared to $18,400 million in 2023[446]. - Scheduled maturities of debt for 2025 total $1,798 million, with future maturities reaching $6,624 million thereafter[449]. Financial Performance - Total operating revenue for 2024 reached $61,643 million, an increase of 6.0% from $58,048 million in 2023[350]. - Net income for 2024 was $3,457 million, a decrease of 25.0% compared to $4,609 million in 2023[350]. - Basic earnings per share for 2024 were $5.39, down from $7.21 in 2023, reflecting a decline of 25.2%[350]. - Operating income for 2024 was $5,995 million, an increase of 8.6% from $5,521 million in 2023[350]. - Comprehensive income for 2024 was $4,323 million, a slight decrease from $4,565 million in 2023[353]. - Cash flows from operating activities increased to $8,025 million in 2024, compared to $6,464 million in 2023, a growth of 24.2%[356]. Assets and Liabilities - Total assets increased to $75,372 million in 2024, up from $73,644 million in 2023, representing a growth of 2.3%[347]. - Total current liabilities rose to $26,670 million in 2024, compared to $26,418 million in 2023, an increase of 1.0%[347]. - Total noncurrent liabilities decreased to $33,409 million in 2024 from $36,121 million in 2023, a reduction of 7.5%[347]. - Total lease liabilities decreased to $7,424 million in 2024 from $8,671 million in 2023[458]. Revenue Streams - Total passenger revenue for 2024 reached $50,894 million, an increase of 4% from $48,909 million in 2023 and a significant rise of 26.5% from $40,218 million in 2022[388]. - Ticket revenue alone amounted to $45,096 million in 2024, up from $43,596 million in 2023, reflecting a growth of 3.4%[388]. - Loyalty travel awards revenue increased to $3,841 million in 2024, compared to $3,462 million in 2023, marking an 11% rise[388]. - Travel-related services generated $1,957 million in revenue for 2024, up from $1,851 million in 2023, indicating a growth of 5.7%[388]. - The balance of loyalty program deferred revenue at the end of 2024 was $8,826 million, an increase from $8,420 million in 2023[405]. - Total other revenue for 2024 was $9,927 million, up from $8,416 million in 2023, reflecting an increase of 18%[407]. Operational Challenges - The company experienced a global outage in July 2024, resulting in approximately 7,000 flight cancellations and impacting 1.4 million customers[119]. Investments and Commitments - Future aircraft purchase commitments totaled approximately $18.3 billion as of December 31, 2024, with commitments spread across 2025 to 2029 and beyond[505]. - The company has 294 aircraft purchase commitments, including 100 Boeing 737-10 and 72 A220-300 aircraft[506]. - The company entered into a purchase agreement for 20 A350-1000 aircraft, with deliveries scheduled to begin in 2026[507]. Pension and Benefits - The defined contribution pension plans costs were approximately $1.3 billion, $1.2 billion, and $1.0 billion for the years ended December 31, 2024, 2023, and 2022, respectively[476]. - The benefit obligation for pension benefits at the end of 2024 was $14,967 million, down from $15,911 million in 2023[480]. - The funded status for pension benefits improved to $938 million at the end of 2024, compared to a deficit of $145 million in 2023[481]. - The weighted average discount rate for benefit obligations increased to 5.71% in 2024 from 5.31% in 2023[483]. Marketing and Advertising - Advertising expenses rose to $438 million in 2024, up from $347 million in 2023 and $302 million in 2022, indicating increased marketing efforts[385].

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Delta Air Lines (DAL) .Delta currently has an average brokerage r ...

After its 71% increase over the last year, investors could be forgiven for wondering whether there's room for Delta Air Lines (DAL -0.54%) stock to run. I think the answer to that question is yes, and after a slew of analyst price target upgrades, it's clear that Wall Street analysts feel the same way. Here's why Delta Air Lines is an excellent stock for a long-term investor portfolio.What the market is worried about with Delta Air LinesIt's not difficult to run a stock screener over the market and find low ...

ATLANTA, Jan. 15, 2025 /PRNewswire/ -- Delta Air Lines' (NYSE:DAL) board of directors today announced Judith McKenna as its newest member, effective February 7, 2025. Ms. McKenna most recently served as President and Chief Executive Officer of Walmart International until her retirement in January 2024, where she was responsible for all aspects of Walmart's business outside the United States. "We look forward to welcoming Judith to the Delta board of directors," said David Taylor, Delta's non-executive Chair ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental a ...

Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Delta Air Lines (DAL) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.Delta Air Lines is one of 131 individual stocks in the Transportation sector. Collective ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Delta Air Lines (DAL) .Delta currently has an average brokerage recommendation (ABR) of 1.00, o ...