A Work Project presented as part of the requirements for the Award of a Master Degree in Finance from the NOVA – School of Business and Economics. DELTA AIR LINES, INC. FLYING HIGH IN A COMPETITIVE INDUSTRY an Equity Research Report on Delta Air Lines, Inc. (DAL: NYSE) FRANCISCO SEQUEIRA DE PAIVA MARTINS DA SILVA STUDENT NUMBER 33897 PEDRO MANUEL CORREIA PEREIRA STUDENT NUMBER 33968 A Project carried out on the Master’s in Finance Program, under the supervision of: Professor Rosário André January 3rd, 2020 Abstract This equity research report will first be focusing on the North American Arline industry, analyzing its current form, as well as looking at industry’s opportunities and threats ahead. On top of this, an outlook over the airline industry will also be presented in order to give the investors an accurate view of the present and the future. A further analysis will then be conducted with regards do Delta Air Lines Inc. (DAL:NYSE), applying the previous research to provide a fair valuation for the group, resulting in an sustained recommendation of whether an investor should consider invest in DAL, or not. Keywords Delta Air Lines, Inc.; Airline; Equity Research; Valuation This work used infrastructure and resources funded by Fundação para a Ciência e a Tecnologia (UID/ECO/00124/2013, UID/ECO/00124/2019 and Social Sciences DataLab, Project 22209), POR Lisboa (LISBOA-01-0145-FEDER-007722 and Social Sciences DataLab, Project 22209) and POR Norte (Social Sciences DataLab, Project 22209). MASTERS IN FINANCE EQUITY RESEARCH DELTA AIR LINES, INC. COMPANY REPORT AIR TRANSPORTATION - AIRLINES JANUARY 3RD, 2020 STUDENTS: FRANCISO SILVA / PEDRO PEREIRA
[email protected] /
[email protected] Flying High In A Competitive Industry During the first 9-months of 2019, solid demand for air travel supported a 6.4% Recommendation: STRONG BUY growth of passenger revenue for Delta Air Lines, Inc.