Why Delta Is Virgin America’s Most Likely Suitor

But that someone or more likely some thing might be tempted to buy Virgin America shouldn’t come as a surprise, nor should any of us be surprised if the ultimate suitor is Delta. Virgin America is starting to make money. Doubters can take a step back, and any prospective buyers are would be starting off on good footing. As Bloomberg reported, Virgin America stated 2015 adjusted net income of $201.5 million—a historic high. It’s growing its fleet and adding capacity. This would make Virgin America an attractive prospect for many buyers, but we believe it’s particularly attractive to Delta. One of the factors we consider is Virgin America’s slots in Love Field. A strong position in Dallas is strategically advantageous and Delta has been fighting Southwest over slots at Love Field for a while. While Delta won a small victory earlier this year, the airline wants more. Delta had originally bid against Virgin America for slots at Love and lost.