Delta Not Out Of Turbulent Skies Yet.

Delta Air Lines, Inc. is one of the top five airline companies in U.S today. Delta’s stock share symbol is DAL registered in the New York Stock Exchange with a market capital of a staggering 27.62 Billion. Deltastock share price today is $32.52 per share and has declined by 1.48%. Delta stock chart shows an immense increase in price from the end of 2013 continuing towards 2014 as it increased from roughly $10 per share to $35 per share. The price of Delta stock had risen, because at the end of 2013 the company recorded a profit of $2.7 Billion, resulting from a 2% increase in passenger traffic which grew over the last three months of 2013. This benefited DAL stocks since the end of the year brings with it the time of festivities due to the winter holidays; this is also the time where overseas students have to return to their homes as well as the labor force that evidently has to do the same. Apparently it seems as if most of these people want to travel with Delta Air Lines, Inc.

Now then, how ironic would it be for an airline company to fall victim to Pteromerhanophobia, in other words fear of flying. On 10th April 2014 a statement was released that U.S government is subsidizing The Boeing Company’s non-U.S customers and since Delta Air Lines, Inc. are located in the States, it is a safe bet to say that Delta Air Line, Inc. are not thrilled. From 10th April to date Delta stocks have suffered by $2 which is exponential considering that only 2 days have passed. Delta Air Lines, Inc. is quite concerned over this fact and already is trying to rectify the foreseeable problems which lie ahead for DAL stocks.

Plans towards rectification include the buying of 50 new long-haul jets from Boeing, as well as Airbus who are Boeing’s direct competitors. This is somewhat astounding to see as Delta Air Lines, Inc. were always considered to be penny-pinching as it has been some time since they have invested as they plan to invest now. Whether this materializes or not is still what remains to be seen. Delta Air Lines, Inc. operates in a colluded market coming on most part close to the economic model known as Oligopoly. Delta Air Lines, Inc. had already expanded in 2008 when they acquired Northwest. They will grow if they occupy these 50 new long-haul jets.

The curiosity takes hold over one’s mind: As airlines grow do they actually get better, especially now in Delta’s current predicament. Delta Air Lines, Inc. who are currently ranked 4th on the Airline Quality Rating 2013, may find themselves victimized over the law of diminishing marginal returns. However looking at the current scenario Delta have more than outperformed what at a time, one thought would be their demise as Wichita State marketing professor Don Headley states “Bigger hasn’t always been better, but in Delta’s case we are seeing a large airline at levels usually only seen by smaller low-fare carriers”. So there are turbulent skies ahead for Delta but if what they are going for materializes, they may have smooth sailings ahead.