Schroder Investment Management Group Reduces Investment in Delta Air Lines

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Schroder Investment Management Group, one of the world’s leading asset managers, recently announced that it has reduced its investment in Delta Air Lines ($NYSE:DAL), Inc. This news caused Delta’s share prices to drop significantly in the New York Stock Exchange. Delta Air Lines, Inc. is a major American airline and one of the world’s largest airlines by total operating revenue. It is headquartered in Atlanta, Georgia and operates a large domestic and international route network, with an extensive presence in the Asia-Pacific region. Furthermore, it is one of the “Big Four” legacy carriers alongside American Airlines, United Airlines and Alaska Airlines.

Market Price

On Wednesday, Schroder Investment Management Group announced their decision to significantly reduce their investment in Delta Air Lines. This decision caused the stock to open at $38.2 and close at $38.9, up by 3.5% from the previous closing price of 37.6. This change in the stock price indicates that the market is not too worried about the reduction of Schroder’s stake in Delta Air Lines. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for DAL. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for DAL. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for DAL. More…

Key Ratios Snapshot

Some of the financial key ratios for DAL are shown below. More…

Analysis

GoodWhale conducted an analysis of the wellbeing of DELTA AIR LINES. Upon examination of Star Chart, we found that DELTA AIR LINES has an intermediate health score of 6/10 with regard to its cashflows and debt. This indicates that DELTA AIR LINES is likely to be able to pay off debt and fund future operations. We classified DELTA AIR LINES as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given the intermediate health score, investors who are looking for a high-growth opportunity may be interested in DELTA AIR LINES. However, investors should be aware that the company is strong in cash flow and debt, medium in growth and profitability, and weak in asset and dividend. As such, it is important to consider the risk involved before investing. More…

Peers

Delta Air Lines Inc. is an American airline that operates over 5,400 flights daily and serves 325 destinations in 52 countries on six continents. As of 2018, Delta ranked as the world’s second-largest airline in terms of passengers carried and operated the largest fleet of Boeing and McDonnell Douglas aircraft. Its headquarters are in Atlanta, Georgia. Southwest Airlines Co. is an American airline headquartered in Dallas, Texas that operates more than 4,000 flights daily. The airline was established in 1967 by Herb Kelleher as Air Southwest Co. and adopted its current name in 1971. The airline has a long history of profitability and has been referred to as “the darling of Wall Street”. American Airlines Group Inc. is a major American airline headquartered in Fort Worth, Texas, within the Dallas–Fort Worth metroplex. It is the world’s largest airline when measured by fleet size, scheduled passengers carried, and revenue passenger mile. American, together with its regional partners, operates an extensive international and domestic network with an average of nearly 6,700 flights per day to nearly 350 destinations in more than 50 countries. SAS AB is the holding company for the Scandinavian Airlines System, more commonly known as SAS. It is a leading airline group in Scandinavia with its main hub at Copenhagen Airport, Denmark. The group also has a significant presence at Stockholm Arlanda Airport and Oslo Airport, Norway.

– Southwest Airlines Co ($NYSE:LUV)

Southwest Airlines Co is a domestic airline company in the United States. It has a market cap of 19.65B as of 2022 and a ROE of 10.01%. The company provides air transportation services in the United States and around the world. It has a fleet of over 700 aircraft and operates more than 3,800 flights a day.

– American Airlines Group Inc ($NASDAQ:AAL)

American Airlines Group Inc has a market cap of 9.09B as of 2022, a Return on Equity of 5.3%. American Airlines Group Inc is an airline company that operates through its subsidiaries. The company was founded in 1934 and is headquartered in Fort Worth, Texas. American Airlines Group Inc operates in two segments: Airline and Cargo. The Airline segment includes passenger and cargo operations. The Cargo segment includes cargo operations. American Airlines Group Inc offers a variety of services, including scheduled passenger and cargo transportation, vacation packages, and other ancillary services.

– SAS AB ($LTS:0O1W)

SAS AB is a Swedish-based software company that provides analytics software. The company has a market cap of 3.89B as of 2022 and a ROE of -199.67%. SAS AB’s software is used by companies to make decisions about marketing, pricing, and other strategic decisions.

Summary

Delta Air Lines, Inc. is a major American airline with strong financials and global presence. Recently, Schroder Investment Management Group has trimmed its stake in Delta Air Lines, Inc., with the stock price moving up the same day. This shift in ownership indicates a positive outlook from the investment group, suggesting better than expected returns for investors.

It also offers investors the opportunity to diversify their portfolios, as it is a relatively stable stock with a large capital base. Overall, Delta Air Lines, Inc. looks to be an attractive option for investors looking for long-term gains in a stable market.