Delta Air Lines (DAL: NYE) announced a significant step toward an upscale travel experience and potential cost-effectiveness by acquiring 20 Airbus A350-1000 widebody jets. The airline is leveraging opportunities to strategically expand its international fleet and embrace the luxury travel trend.
Stock Target Advisor’s Analysis on Delta Air Lines:
Stock Target Advisor recommends a ” Slightly Bullish ” rating for Delta Air Lines (DAL: NYE) the stock touts a target price of $56.62. In light of a projected 12-month price change of 47.19% and an average analyst target price of $54.75, we remain slightly bullish, citing 9 positive signals and 6 negative signals about the stock.
Industry analysts speculate that Boeing’s recent production woes with the 787 Dreamliner, as evidenced by the Alaska Airlines incident, might have also played a role in Delta’s decision. Regardless of the motivation, the A350-1000 acquisition positions Delta for fierce competition in the premium travel market.
Where Does Delta Air Lines Stand Financially?
In the trailing 12 months, Delta Air Lines (DAL: NYE) 1-year Capital Gain of 0.71% ranks it in the top 85.71% in its sector. Despite a modest 1-year dividend return of 0.52%, the overall yearly total return is 1.23%. The five-year analysis reveals mixed results. A robust revenue growth of 22.96% contrasts with a dismal -58.88% earnings growth.
Conclusion:
Delta Air Lines (DAL: NYE) acquisition of 20 Airbus A350-1000 widebody jets is a significant step towards providing an upscale travel experience and potentially achieving cost-effectiveness. Their strategic expansion of the international fleet and embrace of the luxury travel trend showcase their commitment to satisfying customers’ needs. With the A350-1000 acquisition, Delta is well-positioned to compete fiercely in the premium travel market.
