Latest news with #DeltaAirLinesInc
Mint
4 days ago
- Business
- Mint
Delta Sees Demand Ticking Up Again After ‘Choppy' First Months
(Bloomberg) -- Delta Air Lines Inc. Chief Executive Officer Ed Bastian said he's more confident about demand in the second half of the year after price-sensitive passengers in the US showed restraint in recent months amid a worsening economic climate. Demand should 'tick up a bit' in the period, Bastian said in an interview with Bloomberg Television in New Delhi on Sunday. That's after Delta suffered weakness in bookings predominantly in the US market and among leisure travelers in its main cabin earlier this year, he said. 'There's no question in the short term, with what we've seen coming out of Washington and the challenges of the trade negotiations, it's choppy at the moment,' Bastian said. 'I don't think that's going to be long lasting. We are pushing through and getting to a place of some stability.' Bastian said that travel on the North Atlantic route is doing well, and while there's some weakness in the main coach cabin, yields in the front end of the aircraft remain strong. In March, Delta slashed its first-quarter profit guidance and reduced its outlook for revenue growth and operating margin, in a sharp reversal from the start of the year, when Bastian trumpeted a steady demand environment. The company is due to report earnings in early July. The aviation industry has been thrust into uncharted territory with the risk of tariffs, because airlines and manufacturers were long insulated from any levies given the global nature of the business. Delta has said that it doesn't want to absorb the cost of tariffs on aircraft that it's taking from Airbus SE, putting it on a possible collision course with the European manufacturer, which has also said it won't pay for the duties. 'We're very close partners with Airbus,' Bastian said. 'This time will pass, and there will be a new world order of some nature.' More stories like this are available on
Yahoo
20-05-2025
- Business
- Yahoo
UBS Upgrades Delta Air Lines (DAL) to Buy, Lifts PT
UBS upgraded Delta Air Lines Inc. (NYSE:DAL) from Neutral to Buy while increasing its price target from $46 to $66 on Monday. Analyst Thomas Wadewitz particularly highlighted improved international revenue prospects for the company. This shift comes from eased trade tensions with China and a favorable agreement with the UK. An aerial view of a commercial aircraft taking off from a coastal hub. UBS analysts are confident in Delta's international and premium flight revenue recovery. This is because the economy seems steadier now, and the US stock market has recently improved. Delta's Q1 2025 results were reported on April 9 and showed pre-tax earnings of $382 million, or $0.46 per share. This totaled $13 billion in revenue, which was a 3.3% increase year-over-year. Delta Air Lines Inc. (NYSE:DAL) provides scheduled air transportation for passengers and cargo in the US and internationally. It operates through two segments: Airline and Refinery. While we acknowledge the potential of DAL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DAL and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-04-2025
- Business
- Yahoo
Delta Air Lines Inc (DAL) Q1 2025 Earnings Call Highlights: Navigating Growth Amidst Economic ...
Pre-Tax Earnings: $382 million or $0.46 per share, flat compared to last year. Revenue: $13 billion, a 3.3% increase from the previous year. Operating Margin: Approximately 5% for the March quarter. Free Cash Flow: $1.3 billion generated during the quarter. Return on Invested Capital: Double-digit return reported. Profit Sharing Payout: $1.4 billion distributed to employees. American Express Remuneration: Grew 13% to $2 billion. Cargo Revenue: Increased 17% year over year. International Revenue Growth: 7% increase, with specific growth in Transatlantic (5%) and Pacific (16%). Fuel Prices: $2.45 per gallon, slightly higher than initial expectations. Debt Repayment: $530 million repaid, with gross leverage at 2.6 times. Credit Rating Upgrade: Moody's upgraded Delta's rating, marking the third upgrade in eight months. June Quarter Outlook: Expected operating margin of 11% to 14% and earnings of $1.70 to $2.30 per share. Net Aircraft Additions: Expected to be less than 1% for the year. Debt Repayment Target: At least $3 billion for the year. Warning! GuruFocus has detected 4 Warning Sign with DAL. Release Date: April 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Delta Air Lines Inc (NYSE:DAL) reported a record revenue for the March quarter, with a 3.3% increase compared to the previous year. The company achieved a pre-tax income of $382 million and delivered free cash flow of $1.3 billion. Delta Air Lines Inc (NYSE:DAL) maintained strong operational performance, leading in on-time performance and system completion factor among network peers. The company celebrated a $1.4 billion profit-sharing payout to employees, recognizing their contributions to 2024's performance. Delta Air Lines Inc (NYSE:DAL) secured a 10-year agreement with UPS for its maintenance, repair, and overhaul business, supporting long-term revenue diversification. Delta Air Lines Inc (NYSE:DAL) faced a challenging macro environment, with demand softness in the domestic main cabin and both consumer and corporate travel. The company experienced a decline in unit revenues by 1% during the March quarter. There is broad economic uncertainty around global trade, leading to stalled growth and impacting domestic demand. Delta Air Lines Inc (NYSE:DAL) is not providing an updated full-year outlook due to macroeconomic uncertainties. The company is reducing expected capacity growth in the second half of the year to align supply with demand, reflecting a cautious approach to market conditions. Q: Can you provide context on the high and low end of the second quarter guidance, especially regarding the price-sensitive US domestic market and its potential impact on international and premium segments? A: Glen Hauenstein, President, explained that while there is concern about the domestic market's weakness affecting international and premium segments, they have not yet seen this impact. The affluent cohort's wealth remains significantly higher than in 2019, and strong cash sales continue, particularly for long-haul travel. Delta is closely monitoring demand trends. Q: How are the capacity cuts planned for the second half of the year, and what regions or fleet types will be most affected? A: Glen Hauenstein stated that capacity cuts will begin in August, focusing on domestic main cabin and off-peak times, particularly in the Southeast where schools return earlier. Older aircraft retirements will be accelerated, targeting high recapture and improved profitability. Q: In a recessionary environment, how do different demand cohorts perform, particularly corporate, premium, main cabin, and international? A: Glen Hauenstein noted that premium demand has been more resilient than main cabin demand. The premium segment is larger than ever, and Delta has expanded ways for customers to access premium cabins, which has helped maintain demand even in a downturn. Q: How is Delta managing costs in light of reduced capacity growth, and what areas are being targeted for cost reductions? A: Daniel Janki, CFO, explained that Delta is focusing on direct flying costs, maintenance cycles, and aligning labor hours with new volume levels. They are also aggressively managing their supplier base and discretionary spending to protect margins and cash flow. Q: What is Delta's stance on paying tariffs on new aircraft deliveries, and how is this affecting discussions with Airbus? A: Edward Bastian, CEO, stated that Delta will not pay tariffs on aircraft deliveries. They are working closely with Airbus to address this issue, emphasizing that the aerospace industry significantly benefits the US economy through exports, and they hope for a resolution through trade discussions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
20-03-2025
- Politics
- Bloomberg
Taliban Frees US Citizen Glezmann After More Than Two Years
A US citizen detained by the Taliban in Afghanistan for more than two years has been released, as the Trump administration continues to exert pressure on foreign governments to release detained Americans, the State Department said Thursday. George Glezmann, a Delta Air Lines Inc. mechanic, was released after two and a half years of captivity and is on his way home to be reunited with his wife, Secretary of State Marco Rubio said in a statement, without commenting on anything the US might have offered in return.
Bloomberg
20-03-2025
- General
- Bloomberg
Delta Pilots Warned on Rapid Descent Before Toronto Jet Flipped
The Delta Air Lines Inc. plane that flipped over as it landed in Toronto last month was warned about its rate of descent, according to a preliminary report released Thursday by the Transportation Safety Board of Canada. The CRJ-900 regional jet arriving from Minneapolis received a 'sink rate' alert 2.6 seconds before touching down at Toronto Pearson International Airport on Feb. 17, the report found.
