DAL stock is taking off

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Delta Airlines is very well known for its cost effectiveness and customer satisfaction strategies. These are the reasons why Delta is considered as a very good company. Last year was a very good year in terms of profits for Delta. It has recorded a pre-tax income of $2.7 billion; this was a 71% increase on a year-on-year basis. This was a substantial increase and was reflected well in DELTA airline stock price. DAL stock outperformed the airline industry by quite a margin. This resulted in a big jump in share price.

In coming year top growth routes would be Middle East-Asia Pacific, within Latin America, within China and within the Asia-Pacific, including China, which are expected to show more than 6% growth. Another Major move that contributed towards the improvement of share price was reducing the debt from $17 billion to $9.3. This was a very positive sign for investors as it reduced the financial risk of the company. The interest was reduced by 35% which resulted in a substantial decrease in cost of capital. Delta Airlines by retiring a substantial amount of debt has gained confidence of its investors and this will definitely add value to the firm.

 

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