5 Airline Stocks to Sell to Now

Airline Stock #3 – Delta Air Lines (DAL)

On the surface, the acquisition of Northwest Airlines was strategically wise. The deal eliminated another large competitor and provided Delta (DAL)
with more leverage in negotiations with unions.

Indeed, DAL has been one of the best performers this year with a loss of only 50% as compared with much larger losses across the airline industry.
But factor in the threat of the swine flu, and the deal may not look so good and shares may be vulnerable. Northwest’s global routes would suffer
tremendously if an outbreak were to occur.

Irrespective of swine flu, Delta is feeling some pain. In the current quarter, Delta lost $257 million and withdrew its forecast of a profit for
the year. Management stated that it did not expect a material recovery anytime soon. Now, add swine flu to the mix, and you have a very significant
problem.

I would sell Delta now taking advantage of relative strength as compared to its rivals.

NEXT: Airline Stock #4