Delta Air Lines: We Think Delta Can Weather Pratt & Whitney Engine Recall; Valuation Unaffected

For the time being we are leaving our $41 fair value estimate of no-moat Delta Air Lines unchanged, but we will continue to evaluate potential impacts on the airline of the engine recall announced by Pratt & Whitney parent company RTX on Sept. 11. Delta operates approximately 100 airplanes powered by the recalled PW1100 engines, a mix of A220 and A320neos, the largest such fleet in North America (American Airlines flies more Airbus planes, but these have different engines). Delta's overall fleet numbers almost 1,000 planes.