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Wednesday, 04/17/2002

DAL - Delta

Company Description

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.

(Source: Delta)

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 years.

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.

DRIP Information:
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 
Cash: 0
Auto: N/A

Transfer Agent:

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
Analyst Ratings:
Strong Buy    = 3
Moderate Buy  = 3
Hold          = 4
Moderate Sell = 0
Strong Sell   = 0


Copyright 2003

Do not duplicate or redistribute in any form.
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