American Airlines Vs. Delta Airlines

Paper Summary:

This paper looks at the performance and income of American Airlines and Delta Airlines and shows how, while American Airlines has a far superior track record to that of Delta Airlines, Delta has significantly superior gross profit. The paper then relates that American Airlines has not maintained dominance, but Delta's net income fared far worse than that of American Airlines. Figures that show a universal decrease in share valuation are also examined and the very real problems the airline industry is currently facing are illustrated. In addition, the paper compares which company is more liquid, solvent and profitable and which is the better investment choice. The paper notes that the airline industry in general is not necessarily the best choice for investment today.

Outline:
The Strength of the Two
Strengths in Particular Areas
The Trend of Dominance
Industry Comparisons
The More Liquid, Solvent, and Profitable Company
The Conclusive Choice of Investment

From the Paper:

"American Airlines has a far superior track record to that of Delta Airlines. Their assets have experienced relatively continuous growth, however were reduced slightly in '07. This reduction however is sharply contrasted by the income of the company. The company's gross profit has remained consistently high, never dipping into the red over the past four years. The company's net income, while at $504 Millions in '07, was positive in '06 as well, and while the company was negative between '03-'05, the numbers never went below -$1,228, in comparison to Delta's low-point of -$6,203 Millions."

Sample of Sources Used:

• "Airlines Companies Shares Down at the Close of Trading." Yahoo Finance. Final Glance: Airlines Companies. Retrieved on 20 November 2008, from: Quote.yahoo.com. Provided Materials.
• My.zacks.com. Provided Materials.

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• Case Study # 106316 : "Delta Airlines Strategic Analysis"

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