Friday, September 5, 2014

Update: Delta Air Lines' August '14 Traffic Report


Summary

  • Delta released disappointing August traffic numbers.
  • Stock remains a strong buy.
  • The original investment thesis anticipated hiccups from Russia and Ebola.
Delta Air Lines (NYSE:DAL) plunged on Wednesday following the release of traffic and operational numbers for August. While the numbers were at the low-end of previous guidance, the market should've already adjusted for an expected impact from the ongoing hostilities in Ukraine and the Ebola outbreak in Africa. With the expected headwinds and a stock trading sideways during the strong summer travel season, the sell-off suggests the market over reacted.

Read the full update here.


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