Delta Air Lines and Aeroméxico
Delta Air Lines (DAL) and Aeroméxico have been in partnership for one year as of May 8. After one year, they together offer 1,100 flights per week to 33 cities in the US and ten cities in Mexico with 64 routes. The alliance has served more than 7 million passengers and has improved connectivity between the US and Mexico.
Highlights of operations after one year
- new flights and additional flights for various routes
- an 11% capacity increase
- new customer assistance center in Mexico
- roll-out of branded products
Ed Bastian, Delta’s CEO, said, “Delta and Aeroméxico are natural partners because we share the same values that put our people and our customers first. Our relationship is only getting stronger as we continue to roll out our industry-leading partnership, and customers of both airlines are seeing the benefits as we accelerate the pace in 2018.”
Update on DAL’s stock price
DAL stock rose ~1.1% and closed at $52.9 for the week ended May 11. Despite the gains for the week, DAL was still trading 3.2% lower than its 100-day moving average price of $54.65, indicating weakness in the stock.
On a year-to-date (or YTD) basis, the stock has fallen 5.5%. Southwest Airlines (LUV), American Airlines (AAL), and JetBlue Airways (JBLU) have fallen 19.8%, 19.6%, and 15.2%, respectively, on a YTD basis. DAL’s 14-day relative strength index of 49 indicates that the stock is neither overbought nor oversold.
Investors can indirectly hold DAL via the PowerShares Dynamic Leisure and Entertainment Portfolio ETF (PEJ), which invests 4.9% of its portfolio in DAL as of May 11.