How Delta Air Lines and Lower Fuel Costs Could Equal Huge Returns
When reviewing the numbers of Delta Airlines (NYSE: DAL ) , you might be shocked that it's, well, an airline. The domestic airline with the largest market cap is starting to act like a real corporate citizen: paying down debt, paying a dividend, and actually buying back company stock. And amazingly, it's achieved this success despite stubbornly high oil prices.
Just last year, Delta bought a refinery in an attempt to dramatically reduce the costs of jet fuel. What originally looked like a desperate, ill-conceived move has become almost an afterthought, with Delta and other airlines reporting strong profits despite the high price of fuel. Even bankrupt AMR (NASDAQOTH: AAMRQ) and its prospective partner US Airways (NYSE: LCC ) are generating huge gains, despite fuel costs and a merger blocked by the Department of Justice.
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