Delta Air Lines, Inc. (DAL): Is More Cash On The Way?

American will also enter into $17 billion of aircraft lease commitments over the same period (and these figures don’t include US Airways aircraft purchases). In other words, while United Continental Holdings Inc (NYSE:UAL) and American are only slightly larger than Delta, on average they will spend more than twice as much as Delta on aircraft each year.

Furthermore, United Continental Holdings Inc (NYSE:UAL) and American do not have a track record of consistent profitability to back up their capital spending plans. In fact, on a GAAP basis, both lost money in 2012. This shaky financial foundation means that United and American will need to significantly improve their profitability and balance sheets before they can return cash to shareholders. This process could take many years to play out.

Foolish conclusion
With Wednesday’s announcement, Delta showed again how it is the only one of the legacy carriers to have put its house in order. Delta Air Lines, Inc. (NYSE:DAL) shareholders deserve to be rewarded for their patience and the company’s steady execution. By contrast, United and the new American may not have learned from their past mistakes. Shareholders hoping for cash return plans at those carriers could be in for a long wait.

The article Are Airline Investors About to Get a Boatload of Cash? originally appeared on Fool.com and is written by Adam Levine-Weinberg.

Motley Fool contributor Adam Levine-Weinberg is short shares of United Continental Holdings (NYSE:UAL) and has the following options: Long Sep 2013 $33 Puts on United Continental Holdings. The Motley Fool recommends Southwest Airlines.

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