Stock Report: Delta Air Lines

Delta Air Lines is an American airline company that fulfills over 5,400 flights daily. The company was founded on May 30, 1924 and belongs to the SkyTeam airline alliance. The company is valued at $35.89 billion, a large cap stock, with a 1.70 percent dividend yield. It competes with companies like Southwest, Continental, JetBlue and so on. Warren Buffett has turned much attention to this company when he announced that he invested.

Recent News

11/2/16: Delta Airlines is Looking to AirBnb to Boost Business

Under a marketing agreement with AirBnb, Delta customers can earn award miles toward free flights when booking stays with Airbnb. Delta is the world’s second largest airline in passenger traffic and will compete with Virgin America. Airbnb will pay Delta for the miles its airline customers accrue through bookings, just like hotels do, a spokesman for the Atlanta-based carrier said. AirBnb hopes to draw in new customers with this marketing agreement.

11/20/16: Delta Introduces an App to Keep Track of Luggage

 “Travelers are able to check a map in their app to see the last scanned location of their bags, providing peace of mind they’ll be waiting for them on the carousel when they land,” the company wrote in a statement announcing the app and a chip tag.

When loading bags, a light will flash green if everything is on track or red to alert a handler that  a bag may need more attention. This technology can prevent, or help minimize, the loss or mishandling of luggage in an airport.

http://www.nbcnews.com/tech/tech-news/delta-introduces-chip-tags-tracking-app-so-you-know-exactly-n635976

Stock

Delta’s stock price is very fairly valued at a 7.93 P/E ratio. The price for one share of Delta Airlines is $49.24. I think DAL is a buy because of the rise in airline use as well as the recent investment by Warren Buffett’s company, Berkshire Hathaway, which purchased$249.3 million worth of Delta shares. The investment is not at all risky considering that the airline business isn’t going anywhere. In my opinion, if a billionaire’s company invests $250 million in ONE company, private investors should follow. On top of the bright future for Delta, it provides its investors with a 1.65 percent dividend annually. Invest in Delta Airlines with confidence and hold for a while!

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