Tomahawk, WI 9/10/2013 (BasicsMedia) – Delta Air Lines (NYSE:DAL) would move to replace the stock of BMC Software (NASDAQ:BMC) in the S&P 500 Index after the market closes for trading on Tuesday September 10, 2013. This recent change in the broader index is due to the acquisition of BMC Software by Bain Capital LLC, a deal that is expected to be completed on or about that date. Delta is operating as one of the largest passenger airlines across the globe with its headquarters in Atlanta, GA and the company would be added to the S&P 500 GICS (Global Industry Classification Standard)  Airlines Sub Industry Index.

This inclusion into the major index of S&P 500 would prove to be a big boost to the investor confidence in the stock and the shares are already moving to higher level of prices. Such an increase in the share price is primarily due to the purchase made by investors who aim to track the portfolio of the broader index and as the stock of Delta would form a part of this index from Tuesday, there is a recent hype in the investor attraction towards this airline services company.

Aircraft order by Delta

Delta followed up the fleet additions made by United Continental Holdings Inc earlier this year with the placement of an order for 40 new Airbus aircraft which are to be delivered between 2015 and 2017. Such an order placed by the leading player in the airlines industry presents a proof that the sector would move on to report consistent growth in earnings in the near future. In addition, the companies operating in the airlines services sector including that of Delta are also presenting evidences to resume on the growth trajectories.

The recent order placed by Delta for the purchase of aircrafts is evidence to this growth in the sector. Further, if the positive conditions in the sector continue to stay, then it is possible that this new order would not serve fleet replacements, but would move on to serve for new fleet additions. In addition, 75% of the deliveries of Airbus would be in the A321s segment and would be utilized on the domestic routes, which further presents signals that Delta is eyeing on growth and expansion in the US markets. Remaining 25% of the fleet order which would be of A330s segment is expected to serve the company’s overseas markets.

Prospects for growth

Investors could thereby expect that Delta would present stronger growth prospects in its operations in another span of three to four years with the addition of new aircraft to expand its fleet operations in the domestic and international markets. In addition, the growth prospects witnessed in the airlines industry would also add on to this performance boost of Delta in the near future. Investors may always keep an eye on this stock of the airlines firm to grab their earnings at the right time.

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