Delta Could Offer New Shares in May

Like Jerry Grinstein says, timing is everything.

In one of the final decisions of Grinstein's three-year run as CEO of Delta(DALRQ Quote), the airline has apparently selected a good time to emerge from bankruptcy and issue new shares.

The third-largest carrier said Wednesday that it has applied to list its new common stock on the New York Stock Exchange. Delta expects the shares to begin trading in early May under its old DAL ticker symbol.

The timing is good, said Credit Sights analyst Roger King. "In general, there is more demand for airline securities then there is supply," he said.

Grinstein, who will step down after Delta's board selects a successor, displayed a strong awareness of when other carriers chose to take major steps during an investor conference Webcast on Tuesday. He noted Virgin America's plans to begin transcontinental service from a San Francisco hub, just as the six legacy carriers are concluding the process of cutting costs in bankruptcy. "Virgin's timing, I think, is more than a little off," he said.

By contrast, he said, JetBlue(JBLU Quote) showed good timing when it began flying in 2000, before the legacy carriers began restructuring. "I thought there was a certain genius behind JetBlue's timing," he said. "Whether that was chance or design, who knows? But it was perfectly timed for the market."