Delta Air Lines Stock Looks Attractive

Delta Air Lines Stock Looks Attractive

ATLANTA, GEORGIA, UNITED STATES - 2019/11/08: Delta Airlines logo seen at Hartsfield-Jackson Atlanta ... [+] International Airport. (Photo by Alex Tai/SOPA Images/LightRocket via Getty Images)

The shares of Delta Air Lines (NYSE: DAL) continue to trade 25% below pre-Covid levels despite a sizable recovery in domestic air travel demand. The domestic business contributes almost 78% of total revenues and currently passenger numbers at TSA checkpoints are 20% below 2019 figures. Moreover, the third round of payroll support from the U.S. government is assisting employee salaries and mitigating losses through September 30, 2021. During this pandemic period, the company reported $3.1 billion of operating cash outflow - much lower than the $10 billion fall in DAL stock's market capitalization. Thus, Trefis believes that the stock can observe strong gains as investors overlook pandemic losses. Our prior analysis, Pick Delta Over Southwest Airlines Stock To Extend Gains, highlights the key aspects in favor of an upside in DAL stock. Our interactive dashboard highlights Delta Air Lines stock performance during the current crisis with that during the 2008 recession.