With summer travel season now in full swing, people are considering just who to buy their tickets from and how to get to their destinations of choice. The good news is they have plenty of options, and airline company Delta (NYSE:DAL) has made a point of pushing to become the “luxury” class provider of United States air travel. But investors aren’t exactly pleased about this approach and sent shares down fractionally in Tuesday afternoon’s trading.
Currently, Delta is the most profitable airline in the United States, and it’s working frantically to hold its position amid all the competition out there. It’s looking to boost its free cash flow by 50% to between $3 billion and $4 billion and even looks to improve its credit rating back to investment grade.
A connection between itself and American Express (NYSE:AXP) hasn’t hurt either, as Delta sets itself up to be the top provider by pushing for the “splurging” traveler.
Delta to Open Its Largest Lounge Yet
Delta is making it a little easier to fly. It’s poised to bring back a nonstop route from Cleveland to Salt Lake City that shut down in 2020 with the rise of the COVID-19 pandemic. Now, it’s giving area residents one more reason to go to Cleveland. Beyond this, Delta is poised to open its largest lounge yet and really cement its reputation for luxury service.
The lounge, at JFK Airport in New York, measures 40,000 square feet and offers a full-service restaurant with dishes like wagyu steak frites and a dark chocolate souffle. There’s even a full spa service with an eye treatment featuring “cryotherapy ice globes.”
Is Delta Stock a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DAL stock based on 17 Buys assigned in the past three months, as indicated by the graphic below. After a 15.67% rally in its share price over the past year, the average DAL price target of $60.74 per share implies 23.1% upside potential.
