DAL – Market expectations are for declining Uniform ROA, but management is excited about business pricing and their Boston terminal, and is confident about volume

• Delta Air Lines, Inc. (DAL:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 13.7x Uniform P/E, implying bearish expectations for the firm. However, management generated multiple excitement markers when discussing business class pricing and their Boston terminal, and are confident about their volume investments
• Specifically, management generated an excitement marker when saying that in individual markets, the additional amount customers are willing to pay for business class may be greater than at a market basket level. In addition, they generated an excitement marker when saying they took back their terminal in Boston that was constructed and opened almost 15 years ago. Moreover, they are confident that heightened load factor expectations and 737 MAX delays created an environment where they had to reinvest to make sure they can handle volume from market share gains.