Delta Air Lines: A Financial Analysis and Corresponding Recommendations for Delta Air Lines, Inc.

Bush, Emily (2016) Delta Air Lines: A Financial Analysis and Corresponding Recommendations for Delta Air Lines, Inc. Undergraduate thesis, under the direction of Victoria Dickinson from Accountancy, The University of Mississippi .

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Abstract

This alternative thesis project is a financial analysis of Delta Air Lines, Inc. Utilizing the 10-K Financial Statements from 2009 to 2013, along with some correlating outside resources, a full business and financial analysis was completed. Starting with the business background and operations, and then working into analysis of the Financial Statements, corresponding recommendations were created for tax, audit and advisory planning strategies.. The bulk of the analysis utilized the 10-K data provided by the SEC, only using minimal other resources for background research. The research found that since filing Chapter 11 bankruptcy Delta Air Lines has improved substantially. Delta’s largest issues to overcome in the coming years are finding ways to continue growing while keeping costs low. The company has already had to file for bankruptcy once in the last decade; they do not need a repeat. Looking at the current financials, Delta is on the right track for success but needs to consider implementing strong controls for property, plant, equipment, and inventory. The company also needs to ensure that taxes remain low, seeing that right now they have a large tax benefit due to carry forward losses and other tax credits. Future tax expenses could cause a negative impact on net income, so the company should seek tax-planning strategies to ensure future deductions. Finally the company may want to consider utilizing better methods for flight times and online payments, and increasing the capacity of their fuel segment. These recommendations and corresponding financial analysis is outlined throughout the contents of the paper.

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