It was largely inevitable that once one airline stock sent its bag check fees up, others would follow. The latest to join in the fray is Delta Airlines (NYSE:DAL), who announced a hike remarkably similar to those of other airline stocks. The move was good enough for investors, who sent Delta shares up fractionally as a result.
Starting Tuesday, Delta will raise the price for its per-bag checking fee by $5, though those who have Delta SkyMiles Medallion membership and other such programs will continue to get their bags checked at no charge. Now, in line with other airlines, Delta passengers will have to fork over $35 for the first checked bag and $45 for the second. This is the first time Delta has hiked prices since 2018, reports note, a move that will better allow it to keep up with rising costs by passing them on directly to the customer.
Cutting Back on Service
In terms of bringing revenue in line with costs, it will likely help matters—at least for a while—that Delta is also planning to cut back on service. It’s cutting out the route between Los Angeles Airport and London Heathrow, which was only recently restarted back in summer 2023. Meanwhile, Delta now operates just one gate out of Dallas’ Love Field airport, a five-times-daily flight to Atlanta. Formerly, Delta had flights from Love Field to New York and Los Angeles, but after May, Los Angeles’ flights will be gone, leaving only Atlanta. At least for now.
Is Delta Stock a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DAL stock based on 11 Buys assigned in the past three months, as indicated by the graphic below. After a 8.98% rally in its share price over the past year, the average DAL price target of $53 per share implies 27.77% upside potential.
