Why Shares Of Delta Air Lines Are Up By 5% Today?

Delta Air Lines Video 15.03.21.

Delta Air Lines Stock Moves Higher Amid Signs Of Recovery

Shares of Delta Air Lines have reached multi-month highs today after various  airlines told analysts that bookings were rising as travellers became more confident thanks to vaccination efforts. Other airline stocks like JetBlue Airways or Southwest Airlines are also moving higher today.

Delta Air Lines stated that its first-quarter revenue would decline by about 60% compared to the first quarter of 2019, an improvement from the previous forecast which called for a decline of 60% – 65%. The company’s CEO added that cash burn could soon end which will free up cash for asset purchases in the second quarter.

Other airlines also expect to report better results, so the whole segment enjoys traders’ interest in today’s trading session.

What’s Next For Delta Air Lines?

Delta Air Lines stock is currently trying to settle above the $52 level which means that the company’s shares are already close to pre-pandemic levels. The stock managed to rebound from the low at $17.51 which was reached in May 14, 2020 as traders bet that mass vaccination will ultimately boost travelling.

Right now, things are moving in the right direction for Delta Air Lines, and the market continues to push the stock higher, expecting that major improvements are around the corner.

Analysts expect that Delta Air Lines will finish the current year with a loss of $2.76 per share but estimates vary widely. The company is projected to report a profit of $3.83 per share in 2022 as the world gets back to normal thanks to vaccination programs.

At current levels, the stock is trading at less than 14 forward P/E which is cheap by today’s market standards. At the same time, airlines do not enjoy high multiples like tech stocks, and it remains to be seen whether the market will be ready to pay higher prices for shares of Delta Air Lines if analyst estimates do not move higher.

For a look at all of today’s economic events, check out our economic calendar.