More on Delta

Facts and updates:

1.       As of 12/25/12, Delta is up 46% YTD. As of 4/6/13, Delta is up 21% YTD.

2.       As of 12/10/12, Delta’s price was 11.22 and on Jun 29, 2007 (the date on the new stock) it was 19.70 - about a 40% drop between the two days.  However, today’s (12/10/12) low P/E seems to be very attractive.

3.       The merger of US Air and American Air will have significant impact on Delta. Delta will face a larger company to compete.

4.       However, the number of airlines is decreasing at an alarming rate. If we only have a handful of major airlines, they will monopolize this industry, raise ticket prices as much as the market can bear, and charge every penny they see fit. In this way, their profits will rise as the consumers cannot find a better way to travel for driving distances longer than three hours.

5.       The smaller and minor airlines will specialize on selected, direct-flight routes, and eventually they will be gobbled up by the big airlines with tempting offers or air fare dumping by larger airlines to drive them out of business.