Delta Air Lines, Inc. provides air transportation for passengers
and freight throughout the United States and around the world.
As of February 1, 2001, Delta (including its wholly owned
subsidiaries, Atlantic Southeast Airlines, Inc. and Comair, Inc.)
served 201 domestic cities in 45 states, the District of Columbia,
Puerto Rico and the U.S. Virgin Islands, as well as 50 cities in
32 countries. With its domestic and international codeshare
partners, Delta's route network covers 218 domestic cities in 48
states, and 131 cities in 58 countries.
Based on calendar 2000 data, Delta is the largest U.S. airline in
terms of aircraft departures and passengers enplaned, and third
largest as measured by operating revenues and revenue passenger
miles flown. Delta is the leading U.S. airline in the
transatlantic, offering the most daily flight departures, serving
the largest number of nonstop markets and carrying more passengers
than any other U.S. airline.
Delta is a Delaware corporation headquartered in Atlanta, Georgia.
Delta is subject to government regulation under the Federal
Aviation Act of 1958, as amended, as well as many other federal,
state and foreign laws.
Reasons To Invest
Delta recently reported a huge loss for its most recent quarter.
The company lost $397 million on sales of $3.10 billion. Sales
dropped by about 20 percent from the year ago period. Obviously
the events of September 11 exacerbated the already poor
business conditions last quarter. But the skies may be clearing
for the nation's number 3 carrier.
Company officials said that the losses would continue into the
sector quarter, but that the rate would decline. Going out into
the second half of this year, Delta expects to return to
profitability. The company expects to achieve its return to
profitability through continued cost cutting efforts, along with
help from a rebounding economy.
The renewed bullish outlook for the airline industry has
certainly been reflected in the market this year. The Airline
Sector Index (XAL.X) is flying higher, better by more than 17
percent year to date. Given the multi-year bear market of the
airline industry, there's plenty of upside left over the coming
Investors looking to accumulate shares of Delta for the long
term might do well to monitor the price action of the XAL.X
through this year. A break above the September 10 level, for
example, would confirm the rebound in the business and portend
further strength in some of the majors, such as Delta. That
level is at the 117 mark in the XAL.
Shares to Qualify = 1 Accept Foreign Accounts: No
Auto-reinvestment = No Temper Enrollment Serv: Yes
Min/Max Investment = $25 to $10,000 per year
Reinvestment Fees -
Div : 0
First Chicago Trust
Industry Group: Airline 52-week high=$48.05
Annual Dividend Per Share= 0.10 52-week low =$20.00
Last earnings 02/20 est = -2.87 actual = -2.90
Next earnings 06-18 est = -0.71 versus = -1.03
P/E = N/A
Strong Buy = 3
Moderate Buy = 3
Hold = 4
Moderate Sell = 0
Strong Sell = 0