Delta Air Lines (DAL) Shares Skyrocket, What You Need To Know
What Happened?
Shares of global airline Delta Air Lines (NYSE:DAL) jumped 5.4% in the morning session after fellow carrier, United Airlines (NASDAQ:UAL) reported strong third-quarter earnings results that exceeded analysts' revenue and EPS expectations. UAL called out improved sales trends signaling that the industry may be at a turning point as unprofitable capacity dwindled. This reduction suggests that airlines are scaling back on underperforming flights or routes, amid improving competitive pressure. Overall, the results bode well for air travel as the industry rebounds from the pandemic-induced downturn.
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What The Market Is Telling Us
Delta Air Lines’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Delta Air Lines is up 37% since the beginning of the year, and at $55.41 per share, has set a new 52-week high. Investors who bought $1,000 worth of Delta Air Lines’s shares 5 years ago would now be looking at an investment worth $1,042.
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