Delta(DAL) ZACKS·2025-05-07 17:20Expansion Plans - Delta Air Lines (DAL) plans to introduce nonstop flights to Copenhagen and Stockholm, along with over 35 destinations in Scandinavia, through its partnership with Scandinavian Airlines System (SAS) [1] - Nonstop flights from Minneapolis–St. Paul to Copenhagen will operate three times a week starting May 22, and daily flights from New York–JFK to Copenhagen and Stockholm will commence on April 14 [2] Financial Performance - DAL's international revenues increased by 7% year over year in Q1 2025, indicating strong demand for long-haul travel despite tariff uncertainties [3] - Over the past 30 days, DAL shares gained 24.9%, outperforming the Zacks Transportation-Airline industry's 23.1% increase and American Airlines' 15% gain [4] Market Conditions - Easing trade tensions have positively impacted DAL stock, with indications that tariffs on Chinese goods may be reduced [8][10] - The airline industry has faced challenges due to trade tensions, but recent developments have contributed to a rebound in airline stocks [7][10] Cost Management - Declining oil prices have led to a 7% year-over-year decrease in aircraft fuel expenses in Q1 2025, benefiting DAL's profitability [11] - High labor costs, however, have increased by 11% in 2024, posing challenges to the bottom line [18] Shareholder Initiatives - DAL's management has approved a 2 billion to shareholders over the next three years, reflecting confidence in cash flow and future prospects [12] Valuation Metrics - DAL stock is considered attractively valued, trading at a forward price-to-sales multiple of 0.47, lower than the industry average and competitors like American Airlines and United Airlines [13] - The Wall Street average target price for DAL stock is $59.73, suggesting an upside of more than 33% from current levels [16]