Delta Air Lines, Inc. (NYSE:DAL) Destined For Greatness

by Tom Kelly | Wednesday, Mar 26, 2014 | 4832 views

Boston, MA, 03/26/2014  (usastockreports)- Delta Air Lines, Inc. (NYSE:DAL) is destined for greatness, having gone past the economic turmoil of 2009 that had brought the whole industry into its knees. The airline has been buoyed by a resurgence in revenue growth and net income that has greatly bolstered its free cash flow.

Delta Airlines shareholders continue to benefit from strong growth in the aviation industry, something that has had an impact on an increase in earnings per share as well as dividend offers.

Delta Air Lines revenue grows as debt drops

Delta Air Lines, Inc. (NYSE:DAL) reported market topping revenue for its recent quarter thanks to an impressive growth in domestic and international operations complimented by a drop in fuel prices. The company debt has been on a low seen by the recent dividend and share repurchase program.

The airline expects to generate a cash flow of at least $5 billion this year. The airline in 2013 reached the milestone having generated $5 billion in operating cash flow as well as $2.1 billion in free cash flow.

Delta Air Lines passenger revenue up

Last year was one of the best years for Delta Air Lines as it was able to generate an increase of 4% in passenger revenue per available seat mile. This was despite incurring thousands flight cancellations due to the winter storm.

The increase in passenger revenue was heavily bolstered by a 21% increase in midwinter travel to various Latin America destinations. The company’s bottom line is expected to receive a major boost in the current year as fuel prices are expected to drop by a further 8%. Passenger revenues could go even higher as the airline continues to face out 50 seats airlines and replacing them large and cost effective airplanes.

Delta Air Lines, Inc. (NYSE:DAL) has already set its path for greatness in the current year with its stock continuing to surge in the market. They closed at a high of $34.43 on Tuesday trading session having moved up by 3.33%.

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