Delta Stock (NYSE:DAL)
Third-quarter earnings for Delta Air Lines (NYSE:DAL) were strong, and the airline is bullish about the future of flying. Delta stock has risen by as much as 5% due to at least one upgrade from Wall Street in response to the findings.
What’s the Reason?
With mainly positive news, Delta Air Lines (NYSE:DAL) began the airline earnings season on Thursday. The company’s revenue was more than projected, indicating that demand, both domestically and internationally, is still robust, even though profits were lower than expected owing to Hurricane Ian. Thus, Delta stock anticipates a favorable free-cash-flow position by the year 2022.
Investors were relieved to hear this, as they had been concerned that the Federal Reserve’s efforts to combat inflation might slow down travel in the months ahead. Airline tickets are a costly luxury item that many people put off buying when times are tough. However, Delta said that October metrics are outpacing September’s, and November revenue also shows positive trends.
Helene Becker of Cowen was pleased enough to raise her price objective on Delta stock from $48 to $54. The airline sector took a significant blow during the epidemic, but according to a letter written by Delta’s Becker, the company is certain it has the resources to fully restore its network, with an eye on enhancing operations and expanding market share at its higher-margin core hubs.
Becker increased her profits forecast for 2022 to $2.84 per share and her forecast for 2023 to $7.00 per share, both of which are higher than the guidance provided by management.
What’s Next?
Though the airline industry has had a difficult go of it in recent years, pent-up demand due to the epidemic is still helping to drive profits.
We’ve said for a long that Delta is a best-in-class business with the management, assets, and labor structure to bounce back from the pandemic faster than its competitors. Recent findings and recommendations haven’t thrown any doubt into that conclusion.
From now, Delta stock can only go up in the air.
Featured Image- Unsplash @ sixty7pixels
Author Shariq Khan 
