A glance over some of the key developments taking place at the company along with the stock update
Given Delta Air Lines Inc.’s (NYSE:DAL) strategy, it appears that the carrier intends to stay operational in most of the routes. Recently, the company stated that it wants to keep flying the Lagos-Atlanta route.
According to Delta, the travel market in Nigeria is still positive despite the effects of the recession. It stated that there is high potential for growth in the region.
The airline mentioned receiving huge support from the federal government in terms of repatriating the funds back to the country. The region has been known for giving trouble to airlines in terms of repatriating funds, which the countries consider as operational capital.
Donald Trump and Delta Air Lines
Although the new president elect, Donald Trump, is yet to take charge of the Oval office, positive air has begun surrounding Delta Air Lines. The company can benefit a lot in term of its pension plan, which currently remains highly underfunded. With interest expected to rise next month, it is expected to reduce pension liability. In other words, Delta will have more money to return to its shareholders.
It is important to note that the company’s pension liability is now higher than its debt. By the end of September, its unfunded pension and post-employment benefits liabilities stood at $12.6 billion; a huge burden. However, analysts related to the industry expect things to turn around and produce improved results as soon as Trump Administration becomes operational; the reason being Mr. Trump who announced growth and infrastructure plans in his pre-election campaign.
The DAL stock traded at $49.21 at the closing bell on Wednesday, surging 0.65%. It currently trades in the 52-week range of $32.60-52.77. Delta Air Lines has a market capitalization of $37.07 billion, which has increase 0/92% year-over-year (YoY).