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Here's Why You Should Retain Delta Air Lines Stock Now
Delta Air Lines' (NYSE: DAL) top line is bolstered by robust air travel demand. Shareholder-friendly actions and fleet upgrade efforts are commendable. However, DAL is grappling with elevated fuel costs and labor costs.
Factors Favoring DAL
Strong domestic air travel demand is boosting DAL's top line. This positive trend is reflected in DAL's share price, which has seen significant gains so far in 2024. Capitalizing on this buoyant market, Delta Air Lines' management is projecting a 5-7% year-over-year increase in adjusted total revenues for the second quarter of 2024.
Delta Air Lines ended the first quarter of 2024 with cash and cash equivalents of $4.46 billion, much higher than the current debt level of $2.81 billion. This implies that the company has sufficient cash to meet its current debt obligations and reflects a robust financial position.
DAL's management resumed quarterly dividends last year after a COVID-19-induced pause, which highlights its shareholder-friendly stance. The most recent quarterly payout ...