Delta Air Lines Inc. (NYSE:DAL) comes back S&P 500 with a bang
Good news continues for the once beleaguered US airline, Delta Air Lines Inc. (NYSE:DAL). According to news coming-in from Standard & Poor, the second-largest airline flying US skies will take its place in its Index for Tuesday’s trading. Revenues rose by 6.7 percent for Delta by end of morning’s trading.
Delta emerges from almost-bankruptcy
Eight years ago, it was different story for this airliner. Now with steady performance, several portfolio managers have marked a buy on this company’s shares allowing it to be placed in the S&P 500. The Sub-Industry Index that will see Delta listed is S&P 500 GICS or Global Industry Classification Standard Airlines. The company has replaced BMC Software Inc.
Delta placed on BUY mode
In the past year Delta has seen 77-percent improvement in its finances and commenced dividend payment again. Delta will be in the company of one other airline carrier on S&P, the Southwest Airlines which saw a slide of 0.6-percent after announcement of Delta’s ascendancy in the Index.
Several fund managers across categories have been placing a buy on Delta presumably for its strong stock performance, and per share earnings growth. The shares have actually doubled in value in early 2011. These are expected to work as trade-off against the yet sluggish profit margins for this carrier.
Besides, it is just not the fund managers who have been expecting Delta to breach the Index. The continued lack of airline representation in the S&P 500 meant a carrier was soon to be included and Delta appears to be in the right place at the right time. Market analysts believed that the inclusion would be announced only later next year or in the last quarter of this year, but Delta has arrived nearly six months earlier.