Should You Consider Delta Air Lines in Your Portfolio?

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With shares of Delta Air Lines (NYSE:DAL) trading around $33, is DAL an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

Delta Air Lines provides scheduled air transportation for passengers and cargo in the United States and internationally. Its route network is centered around a system of hub and international gateway airports. The company also provides aircraft maintenance, repair, and overhaul services for other aviation and airline customers as well as offers staffing services, professional security, and training services. As air transportation is becoming increasingly more popular, Delta Air Lines is poised to capitalize into the future.

Delta Air Lines is making fundamental changes to its frequent flier program and will reward those who buy its priciest tickets, as opposed to those who fly the most miles. It will be the first major carrier to make such a change and other airlines will certainly be watching to see how travelers react to the change. Delta said Wednesday that the 2015 SkyMiles program will better recognize frequent business travelers and leisure customers who buy premium fares. It’s a bid to lure the much-sought-after business traveler, but it will affect everyone who flies with the carrier and uses the program. Delta had been moving in the direction of a revenue-based program. In January 2013, the company said that its 2014 frequent fliers would need to spend at least $2,500 to qualify for the lowest level of elite status. Previously, they could qualify on miles alone.

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