Portfolio Management
Before Wednesday’s opening bell, Delta Air Lines (DAL) released its first quarter financial results. Here’s what the results mean for mutual fund investors.
Inside DAL’s Results
Earnings
The company reported earnings of $746 million, or 90 cents per share, up from $213 million, or 25 cents per share, last year. Excluding special items, EPS was 45 cents per share—above analysts’ view of 44 cents.
Revenue
Revenue rose 5% to $9.39 billion from $8.92 billion last year. Analysts expected to see revenue of $9.39 billion.
Profits Tripled, But DAL is Cutting International Capacity
During the first quarter, profits soared for Delta, primarily due to lower fuel costs. Despite this benefit, the airline has been one of the many companies that has been negatively impacted by the stronger US dollar.
The company said that it will be reducing capacity in international markets that are most impacted by the stronger dollar. Some of the regions included are Russia, Japan, Africa, India and the Middle East.
Mutual Funds to Watch
Investors interested in Delta Air Lines may be interested in the funds listed below. These funds currently have the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| VTSMX | Vanguard Total Stock Market | 1.76% |
| VFINX | Vanguard 500 Index | 1.12% |
| SEEGX | JPMorgan Large Cap Growth Select | 0.78% |
The Bottom Line
The funds listed above allow investors to gain exposure to DAL while remaining diversified. Investors interested in Delta Air Lines may also be interested in American Airlines (AAL) and Southwest Airlines (LUV).
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