How International Expansion Turned From a Growth Opportunity to a Liability for Delta Stock
Over the last decade, Delta Air Lines (NYSE: DAL) gained a reputation as an innovator in the airline business. Since emerging from bankruptcy in 2007, it kicked off a round of consolidation that helped stabilize the industry while pioneering a more dynamic pricing structure to help legacy carriers better compete with discounters.
The airline has also been a bit of a risk taker, making the unusual move of buying an oil refinery to help ensure adequate jet fuel supplies. Delta has also used its capital to build out its empire, spending billions to acquire stakes in airlines around the globe.
Given current market conditions, that empire building is open to question. The COVID-19 pandemic has sapped global demand for air travel, leaving Delta and airlines around the world scrambling for added liquidity and trying to avoid financial disaster.
Source Fool.com
