What are your thoughts on Delta Airlines (DAL)?

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They seem to be getting good results and are paying down their Covid debt bubble. Would they make a good investment at this point in time? I will be retiring in 6 years at which point I will trim it down over time (reverse dollar cost averaging?) if is stable or sell it off to re-invest if it has proven to be volatile. Thanks.

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Asked on February 12, 2025 9:06 am
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AIrlines have proven to be very poor investments over the long-term. The business is hyper competitive, margins are relatively thin, and it's just not something I'd ever look to buy with a long-term mentality.

Delta is doing a reasonable job of paying down debt and repairing the balance sheet, and as a result free cash flow is improving, but ultimately I do believe there are higher quality companies out there with higher margins and substantially lower risks of disruptions due to material events, like a shock in the economy, rising fuel prices, another pandemic, etc.

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Posted by Dan Kent
Answered on February 12, 2025 10:46 am
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