Delta Air Lines, Inc.: (NYSE:DAL) THE ORANGE VALUE FUND Daniel Brenner | Senior Analyst Delta Air Lines Inc. Airline th October 27 , 2015 Buy DAL Equity Delta Air Lines Inc. DAL Statistics as of 10/26/2015 Exchange: NYSE Security Ticker: DAL Share Price as of 10/26/15 $51.32 Initiating Coverage 52 Week Range $34.61-$51.47 Daniel Brenner | Senior Analyst Anisa Khalouf | Junior Analyst Market Cap $40.11B
[email protected] [email protected] Revenue $40.2B Net Income $659M EBITDAR $8.11B Business Description Enterprise Value $45.10B Delta Airlines Inc. (DAL) provides air transportiation for passengers EV/EBITDAR 5.56x and cargo worldwide, operating on its global route network. Delta is among the top six airlines in the United States, accounting for 17% domestic market share, and maintains a major international presence as it provides service to over 334 destinations among 64 countries. DAL operates in two business segments, Airlines and Refinery. DAL’s global route network allows them to operate in every major market, both domestic and international, and is centered around a network of hub and international gateway airports. The airports within this network that DAL operates out of include Amsterdam, Atlanta, Detroit, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle, and Tokyo-Narita. Delta’s network is supported by a fleet of aircraft that varies in size and capabiliti$es, thus allowing Delta to adjust aircraft to the demand of the network Investment Thesis • Based on a simplified cash flow model DAL is currently trading at roughly a 20% discount.