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Wealth Advisory Sells $15 Million in Delta Stock as Airline Lags Market Rally
The Motley Foolยท 2025-10-20 00:21
Core Insights - J. L. Bainbridge & Co. Inc. sold 258,492 shares of Delta Air Lines for approximately $14.8 million in Q3, reducing its stake to 2.4% of the fund's reportable assets [2][3][7] Company Overview - Delta Air Lines reported a total revenue of $61.9 billion and a net income of $4.5 billion for the trailing twelve months (TTM) [4] - The airline's stock price as of the last market close was $59.64, reflecting an 8% increase over the past year, which is below the S&P 500's nearly 14% gain during the same period [3][4] Business Operations - Delta Air Lines operates a fleet of approximately 1,200 aircraft and provides scheduled air transportation for passengers and cargo, along with aircraft maintenance and vacation packages [9] - The airline generates revenue primarily from passenger ticket sales, cargo transport, and ancillary services through both direct and third-party distribution channels [9] Market Position - Delta's performance has been characterized by a steady post-pandemic recovery, supported by resilient demand and record quarterly operating revenue, although it faces persistent cost pressures and volatile fuel prices [10] - Competitors in the airline sector have shown varied performance, with American Airlines down 9%, Southwest Airlines up 10%, and United Airlines up 34% over the same period [10] Investment Strategy - The reduction in Delta's stake by J. L. Bainbridge aligns with its focus on financially resilient companies while maintaining a diversified portfolio, which includes significant holdings in Microsoft, Apple, and Alphabet [11]