How to Buy Delta Stock (DAL)

Delta Air Lines (NYSE: DAL) has proven to be a resilient corporate entity throughout its long history. From bankruptcies to mergers and acquisitions, the company has endured in good times and bad times, in wartime and in peace. Delta rebounded even after its stock was delisted in 2005 after a tough period and relisted in 2007 — and even had its best 12-year stretch in its history.

Delta shares didn't fare so well during the pandemic, but the business has recovered. Delta recently reported its highest earnings and revenue due to the booming demand for travel, but is the stock right for you? This guide will explore how to buy Delta stock along with the pros and cons.

Delta Company and Stock History

Delta is one of the premier commercial airline carriers in the world. Collett E. Woolman founded the company in 1928, but passenger transport was not the initial focus. Huff Daland Dusters, the precursor to Delta, began as a crop-dusting operation, primarily eliminating pesky insects from Georgia peach orchards and cotton fields in neighboring southeastern states. It was the first commercial aerial agricultural company in existence.

The rebranded company transported its first passengers, going from Texas to Mississippi. The company later began transporting mail for what was then known as the Post Office Department. After legislation turned over mail delivery to private businesses, Delta's service stalled. With a new Post Office contract in 1934, the company resumed passenger service and began operating as Delta Air Lines.

Delta later served in the war effort and the years following had several firsts in the industry. During the 1950s, the company spearheaded the use of airline hubs — a centralized airport for passengers to connect to other Delta flights.

Several mergers and acquisitions occurred over the next 50 years, including with Chicago and Southern Air Lines in 1953, Northeast Airlines in 1972 and Northwest Airlines in 2007. Each transaction expanded the company's reach and fueled its growth. That growth includes servicing nearly 200 million passengers each year on more than 15,000 daily flights, with its 80,000 worldwide employees overseeing it all. It also services 304 worldwide destinations in 52 countries.

Delta's growing business hasn't come without major stumbling blocks. In 2005, the company filed for Chapter 11 bankruptcy. It cited increased fuel costs, legacy payments and competition from low-fare carriers as the predominant reasons. Its domestic competitors — Northwest Airlines, United Airlines, and US Airways — also filed during that period. The post-September 11, 2001 economic environment wreaked havoc on the airline industry.

On October 13, 2005, the New York Stock Exchange (NYSE) delisted Delta Air Lines stock. The company stock had listed at under $1 per share for 30 consecutive days, falling short of the Exchange's listing standards.

It wasn't until April 2007 that the NYSE relisted Delta stock. It closed at $20.91 on its debut, just as the global economy began its descent courtesy of the great recession. But by March 2008, Delta stock was trading just above $4. The per-share price stayed below its relisted debut for the next five years, failing to close above $20 until July 2013. Delta stock experienced a steady climb in stock price until the pandemic. The company's market cap decreased considerably, but the stock is now on the path to recovery. Delta recently began to pay its dividend again and is up so far in 2023.

Future Outlook for Delta

Delta Air Lines has posted impressive numbers as the demand for travel returns. Delta has shaken off the lockdown woes and is back to reporting record-breaking operating revenue. The company also recently reinstated its dividend.

Delta remains well removed from its pre-pandemic price point. Shares traded in the mid-$50s during that time. A summer rally brought shares close to $50/share, but a drop has expanded the gap between the current market price and the pre-pandemic price.

Delta seems poised to continue delivering quality earnings and revenue as it did before the pandemic. Macroeconomic forces can make traveling out of more people's budgets in the future, and that is a risk investors have to keep in mind when assessing the future outlook for Delta.

Why Delta Stock?

Delta Air Lines is a global brand with nearly a century of business history. Those observations alone make the company's stock an intriguing option. Here are several reasons why you should consider purchasing Delta stock.

International Alliances 

Agreements and joint ventures with foreign carriers, including Air France-KLM, Virgin Atlantic, Virgin Australia, and Korean Air, among others, help strengthen Delta's global reach while accessing international markets in a way that adds long-term value to the brand.

Lengthy Corporate History 

With more than 90 years in business, Delta has a long history for investors to scrutinize before making a decision. It creates an informed investor, which should be the ultimate goal whether you purchase Delta stock.

Upward Trajectory 

Delta recently just completed its most successful quarter with revenue totaling $15.6 billion. Operating income came in at a record $2.5 billion. The airline seems well-positioned as it moves toward the future.

Expanding Industry 

Travel demand is strong as people play catch-up after missing time because of the lockdowns. The airline and travel industries are expanding, and that means good news for Delta stock.

The Risks of Delta Stock

Delta's stock has maintained strong momentum over a sustained period. The company has strong financials and it's an industry leader. In spite of those strengths, there are some things you should be mindful of before purchasing Delta stock.

Highly Regulated Industry

The Federal Aviation Administration often issues regulations and policies for maintaining and operating aircraft. Additional operating expenses usually accompany these directives, which can directly affect the bottom line.

Reliance on 3rd-Party Carriers

Delta partners with several 3rd-party carriers to supplement the company's operations. If these providers encounter challenges that ultimately jeopardize their agreement, it can adversely impact Delta's business dealings. If it spans an extended period, these challenges, which are usually out of Delta's control, could potentially increase costs while decreasing revenue.

Negative Publicity From Safety Issues

Like all commercial carriers, Delta puts a strong emphasis on safety. But if one of its aircraft or 3rd-party carriers is involved in an accident, it fuels a negative perception about flying, which could harm the company's reputation and its business.

Labor-Related Disruptions

Roughly 20% of Delta's workforce is unionized. They include pilots, flight attendants and air dispatchers. The airline industry is labor-intensive, and it often relies on a harmonious relationship between the various unions and the airline. If a work stoppage occurs due to contractual disagreements, it will directly affect Delta's ability to conduct business.

How You Can Buy Delta Stock

Gathering information on how to purchase Delta stock is not a difficult step to take, nor is the process of buying the stock itself. It's an easy-to-follow process that puts you in control.

Conduct Your Research

Information-gathering is at the heart of investing wisely. The overused adage that knowledge is power rings true in this case. While it's not altogether necessary to acquire the knowledge of a sage broker, it's important that you gather enough understanding to make sound decisions. With so many online options you can learn at your own pace. Don't limit your research to the basic components of what stock to invest in. Your research should also include how you plan to go about investing.

Choose a Broker

Some investors choose to go about it alone, using online brokers to manage their transactions. Others prefer one-on-one interaction and relationship-building from full-service investment firms. There is no right or wrong answer. And while each has its pros and cons, it's about personal preference and what suits you as an investor. Choose wisely.

Establish and Build a Relationship with a Broker

This is a critical step toward building the kind of investment portfolio that fits your needs. It's important because it allows you to build trust with your broker. It allows them to become familiar with your goals and suggest the kinds of investment vehicles to get you there. Always remember that the brokers work for you and that you make the ultimate decision.

Fund an Account

Interested in an online brokerage? Create an account and link your banking information to transfer funds or wire money into the account. Either way, once you deposit the funds, you're ready to start trading.

Finalize Your Delta Stock Purchase

Delta trades on the New York Stock Exchange under the symbol DAL. You're now ready to purchase the airline stock at the current per-share price, less any fees or related costs using either your online or your neighborhood broker.

Best Brokers for Delta Stock

Is Delta Stock Right for You?

The most enduring corporate brands usually have compelling stories that include overcoming tough times. Delta has stood on the brink on several occasions throughout its lengthy history. But disciplined and principled leadership led the company out of despair, to the point where it is now an industry leader with solid cash flow.

The air transportation company's outlook is positive: It has significant cash on hand and its quarterly earnings are on the uptick. Delta stock has its perks, but investors should consider their risk tolerance and assess the stock's fair value before making a decision.

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