Who owns Delta Airlines?

  • Jul 09, 2024
Who owns Delta Airlines?

Who Owns Delta Airlines?

Delta is among the biggest international airlines globally, it serves about 180 million plus passengers annually before the COVID-19 outbreak. This company established in Atlanta provides a wide coverage of hubs for the domestic and international network that has more than 300 destinations in more than 50 countries. But who is the real owner of this aviation titan, let alone the proprietor of the planes that fly through the sky?

Publicly Traded Company

While other large commercial airlines based in America have some sort of affiliation to a single company or a person, Delta Airlines is not such company. Delta is a common stock corporation, therefore it not owned by a specific group of people or individuals, but the shares of Delta stock can be purchased by any person, firm or other corporations. Delta airline is listed in the New York Stock Exchange market with the share symbol DAL.

In this regard, Delta is a public company, and it has many shareholders: investors from different investment companies, banks, hedge funds, and millions of shareholders who invest in the company. However, some of these shareholders may hold relatively bigger stakes than the others in the firm.

Top Institutional Shareholders

According to Delta’s 2022 proxy statement, the company’s top institutional shareholders as of December 2021 included:According to Delta’s 2022 proxy statement, the company’s top institutional shareholders as of December 2021 included:

- Vanguard Group Inc – 66 036 164 or 10. 4 % of the total shares.

- BlackRock Inc. , – More than 42,517,680 (6. 6%)

- One of the largest shareholders of GOG is State Street Corp. , which owns 32,064,774 shares, which is 5. 1% of the total.

These investment management superpowers are major shareholders in Delta, but there are over 60 other large institutional shareholders with major stakes in the company. In other words, over 60% of the total shares of Delta are owned by institutional investors.

The BlackRock and Vanguard stakes are index funds meaning they have no active management and are associated with an index. However, State Street also invest on behalf of a number of clients and is listed as having one of the biggest securities lending programs on its books.

Berkshire Hathaway Stake

Another significant stakeholder in Delta is the giant investment company of Warren Buffett namely, the Berkshire Hathaway. Buffett first started investing in the airline in 2016 and kept buying stakes till 2020, and it currently holds about 11% of Delta.

Nevertheless, after significant pandemic losses, in the airline industry, Buffett sold off all of the $2. 1 billion Delta stake in Berkshire in 2020. This lead to Berkshire’s loss of approximately $3 billion as a result of the decline in GE shares. However, in the company’s filings with the Security and Exchange Commission, Buffett said, “The world has changed” because of COVID-19.

I recall that until recently, Berkshire Hathaway was actually Delta’s biggest shareholder, but now, Buffett is out of all airline investments.

Management Ownership

Major Wall Street institutions also retain ownership stakes in Delta, but the management team and board members are not the major shareholders as compared to airline companies.

Delta’s current chief executive officer is Ed Bastian who indirectly controls approximately five hundred thousand shares with an approximate market value of twenty million US dollars as of the first half of 2022. Company president Glen Hauenstein own 196,400,000 shares worth $8,000,000 Some of the company’s influential officials are; This way, the Delta’s executive leadership continues to own these share investments to ensure that their goals are in synergy with those of shareholders.

Schedules A and B of the insider and 5% ownership reports contain the full information on any stock bonuses and transactions made by the company executives. The insiders of the Delta have ownership of less than one percent.

Employee Stock Ownership

Other benefits which are also available include the Employee stock purchase plan, 401k plan and other compensation schemes which make Delta employees partial owners in the company. Such practices embraced at Delta show that the company promotes the employee shared rewards programs where more than 80% of the staff are involved.

Thus, as with many other large companies and corporations, no one person or organization outright owns Delta Airlines, but the company has a broad base of shareholders. Large institutional investors such as those based on Wall Street and mutual funds have large blocks of this company’s securities and this is followed by the index mutual funds while insiders and employees also own small portions of the company’s securities. As Delta had an enormous loss during COVID-19, the company wants to reconstruct and recover the profit post-COVID on this type of ownership.