Relative Strength Index (RSI)
|Bid||27.32 x 1000|
|Ask||27.37 x 900|
|Day's Range||26.52 - 27.85|
|52 Week Range||17.51 - 63.44|
|Beta (5Y Monthly)||1.27|
|PE Ratio (TTM)||4.91|
|Earnings Date||Jul 09, 2020 - Jul 13, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Feb 19, 2020|
|1y Target Est||37.07|
U.S. stocks were mostly higher at the open Wednesday, looking for a second straight session of gains, on growing optimism that governments around the world will be able to loosen lockdown measures in place to combat the coronavirus pandemic. The Dow Jones Industrial Average opened about 351 points, 1.4%, higher, near 25,347, while the S&P 500 jumped about 28 points or .9% to open near 3,019. The Nasdaq Composite Index was about 13 points or 0.1% higher, opening near 9,353. Travel operators like Carnival Cruise Lines and Delta Airlines Inc. roared higher, but tech heavyweights like Amazon.com Inc. sold off as investors looked to beaten-down stocks for better values.
There’s a big debate now about whether Warren Buffett has “lost his touch.” While Buffett’s Berkshire Hathaway (BRK)(BRK) booked substantial losses dumping airlines stocks in the late first-quarter weakness in the sector, insiders at close to half a dozen airlines bought lots of their stock — including the airlines Berkshire sold. In a direct challenge to the Oracle of Omaha, insiders racked up the kind of sector-wide buying I look for to support a bullish industry call in my stock newsletter Brush Up on Stocks.
Shares of Latam Airlines Group (NYSE: LTM) fell 34% on Tuesday after the Latin American airline filed for Chapter 11 protection in New York. The pandemic has created an extraordinarily tough operating environment for airlines, and it seems unlikely the current equity holders of Latam will get much, if anything, from the reorganization. Airlines around the globe have been hard hit by the COVID-19 pandemic, and Latin American airlines in particular have suffered due to bans on international travel.
Shares of airlines took flight Tuesday, amid growing investor optimism over the easing of COVID-19 related lockdown restrictions and as government data showed a continued increase in air travelers.
U.S. stocks closed sharply higher Tuesday as markets focused on evidence of the global economy reemerging from COVID-19 shutdowns and some signs of progress on the race for a vaccine. The Dow Jones Industrial Average rose 530 points, or 2.2% to close around 24,995 and the S&P 500 index gained 36 points, or 1.2% to finish the session near 2,992. The Nasdaq Composite index rose 16 points, or 0.2%, to close at about 9,340. Sentiment was buoyed by news that Novavax Inc. had started human trials of a COVID-19 vaccine. Also fueling gains were recent data showing U.S. air travel has risen and evidence that restaurants and freight trucking were seeing greater demand. Airline stocks surged Tuesday, with the US Global JETS ETF gaining 11.2% on the day, led by shares of Delta Air Lines Inc. , United Airlines Holdings, Inc. and American Airlines Holdings Inc. , all of which posted double-digit gains. The session was also colored by evidence of a rotation out of what has been a defensive technology sector into cyclical names that benefit during economic recoveries. Financial stocks posted the biggest gains on a sector basis, with the Financial Select Sector SPDR Fund rising 5.3% on the day.
Delta stock has been hit hard along with other airline stocks as a result of the coronvavirus outbreak, but is DAL stock near a bottom?
Airline stocks are rocketing higher on Tuesday morning, joining in a broader market rally as investors celebrate signs economic activity is returning to normal and promising developments in the race for the COVID-19 vaccine. Shares of Spirit Airlines (NYSE: SAVE) led the way, up more than 14% as of 10 a.m. EDT, with shares of Southwest Airlines (NYSE: LUV), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Hawaiian Holdings (NASDAQ: HA) all up double digits.
(Bloomberg) -- Latam Airlines Group SA, Latin America’s largest air carrier, sought bankruptcy court protection in New York after the Covid-19 pandemic grounded flights across the region.The Chapter 11 petition allows Latam to keep operating while the Chilean carrier works out a plan to pay creditors and turn around the business. Latam, whose shareholders include Chile’s Cueto family and Delta Air Lines Inc., is operating on a reduced schedule and has commitments for a bankruptcy loan of as much as $900 million.The money is coming from shareholders including the Cuetos, the Amaro family and Qatar Airways, according to a company statement. Latam also has about $1.3 billion in cash on hand.Airlines the world over -- and those in Latin America in particular -- have been hit hard by the coronavirus outbreak, which triggered travel bans and made people reluctant to fly. Avianca Holdings SA, the largest air carrier in Colombia, filed for Chapter 11 bankruptcy earlier in May, burdened by the sharp drop in fliers and its own onerous debt load.Latam’s affiliates in Brazil, Paraguay and Argentina aren’t part of the bankruptcy case, which was filed in the Southern District of New York.Still, the impact will be felt widely, with Santiago-based Latam previously serving more than 70 million passengers a year on more than 300 aircraft. It also carried more than $7 billion of debt.Latam has already eliminated more than 1,850 jobs in Chile, Colombia, Ecuador and Peru in recent weeks from its global workforce of about 40,000 people, after cutting 95% of its passenger operations. In some bankruptcy scenarios, an airline can reject aircraft leases, and Latam has more than 20 jetliners on order from Airbus SE and half a dozen from Boeing Co.“Exceptional circumstances have led to a collapse in global demand and has not only brought aviation to a virtual standstill, but it has also changed the industry for the foreseeable future,” Chief Executive Officer Roberto Alvo said in a statement.Latam listed assets of more than $21 billion and total liabilities of almost $18 billion in its bankruptcy petition.So far, Latam hasn’t had access to government bailout packages designed help offset virus-related distress. Talks are underway with governments in Chile, Brazil, Colombia and Peru about additional financing and assistance, the airline said.The Chilean government will evaluate the “convenience and opportunity to contribute to the success of Latam’s process,” the Finance Ministry said in a statement Tuesday.Brazilian BanThe task was made more urgent this past weekend by U.S. President Donald Trump’s order to restrict non-U.S. citizens arriving from Brazil to slow the spread of the coronavirus. Brazil accounts for about a third of Latam’s revenue.Latam traces its roots to Lan Airlines, founded in Chile in 1929 and privatized in 1989 during the last years of the Pinochet dictatorship. Latam was born in 2012 after Lan announced plans to merge with Tam for about $3.3 billion two years earlier.The Cueto family -- which is Latam’s largest shareholder and holds two seats on its board of directors -- acquired a stake in 1992 and control of the business in 1994. At that time, another major shareholder was current Chilean President Sebastian Pinera, who sold his own 26% stake early in his first term as president in 2010.Last year, Latam signed a $2.25 billion pact to sell a stake to Delta Air Lines, expanding Delta’s footprint in South America. The Chilean carrier has been planning to gradually ramp up flights over the next two months, with the goal of reaching 18% of pre-crisis capacity in July.Latam retained Cleary Gottlieb Steen & Hamilton as legal counsel, FTI Consulting Inc. as financial adviser and PJT Partners Inc. as investment banker.The case is Latam Airlines Group SA, 20-11254, U.S. Bankruptcy Court for the Southern District of New York (Manhattan)(Updates with Chilean Finance Ministry comment in the 11th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
‘Project Birch’ could see Britain’s Treasury step in to support key British companies whose failure will “disproportionately harm the economy
Shares of airline companies surged in premarket trading Tuesday, amid growing optimism that air travel will resume shortly. The U.S. Global Jets ETF shot up 8.0%, outpacing the gain in futures for the S&P 500 , which rose 1.9%. Among the more active airline stocks ahead of the open, shares of United Airlines Holdings Inc. ran up 7.4%, American Airlines Group Inc. jumped 7.1%, Delta Air Lines Inc. climbed 7.1%, Southwest Airlines Co. rallied 7.1%, JetBlue Airways gained 5.6% and Spirit Airlines Inc. hiked up 7.3%. The rally in travel stocks started in Europe, after a report that Germany-based travel operator TUI said it plans to resume flights at the end of July, and after Spain said it will lift the mandatory two-week quarantine for travelers arriving from overseas starting July 1. The optimism also comes after upbeat travelers data out of the U.S. ahead of the weekend, and as U.S. airlines started detailing safety plans to resume more flights and lure travelers.
Airlines' improved cash flow and cost-control measures helped them with enough capital to tide over the crisis, and now with improved traffic, things are certainly looking up for airliners.
On Tuesday the S&P 500 traded above the 3,000 level for most of the session and the Dow crossed 25,000 for the first time since early March. But one strategist warns a pause and digestion in the markets is likely.
Chile's Latam Airlines Group SA has hired U.S. investment boutique PJT Partners to explore debt restructuring options that may include bankruptcy protection filings in three countries, Brazilian newspaper O Estado de S. Paulo reported late on Monday. According to the paper, which cites sources with knowledge of the matter, Latam is considering filing for Chapter 11 in the U.S. and equivalent bankruptcy protection in Chile and Brazil, where are the company's largest operations. In a statement to Reuters, Latam said it "does not comment on speculation" and that if it had something to report, it would do through official channels with regulators.
Several airline stocks posted spectacular gains last week, but despite some positive data points, investors shouldn't expect a quick recovery in air travel demand.
United will use sneeze guards at check-in counters and hand out wipes; JetBlue will block middle seats on Airbus planes.
The U.S. Transportation Department said late Friday it had granted tentative approval to 15 airlines to temporarily halt service to 75 U.S. airports because of the coronavirus pandemic. Airlines must maintain minimum service levels in order to receive government assistance but many have petitioned to stop service to airports with low passenger demand. Both United Airlines and Delta Air Lines won tentative approval to halt flights to 11 airports, while JetBlue Airways Corp, Alaska Airlines and Frontier Airlines were approved to stop flights to five airports each.
Air France-KLM Group (FP: AF) said it has permanently eliminated double-deck Airbus A380 aircraft from its fleet, joining other airlines that also are rationalizing fleets to contain costs amid a dramatic downturn in business caused by the coronavirus pandemic.The current economic hardship accelerated Air France-KLM's previous plan to retire its nine A380s by the end of 2022 — part of a five-year restructuring plan announced last November to improve profitability. The fleet renewal effort at the time was motivated by a desire to switch to more fuel-efficient aircraft, such as Airbus A350s and Boeing 787s, that produce fewer carbon emissions.The group owns or is financing five of the massive planes, with four more under operating leases from outsourced air carriers. The company said Wednesday it will take a 500 million euro ($548 million) impairment loss for the reduced value of the aircraft in the second quarter.Delta Air Lines (NYSE: DAL) owns 10% of Air France-KLM.The A380 was already headed to the dustbin after Airbus last year said it would stop producing the planes after 2021. The plane never fulfilled expectations as a people mover and wasn't ideal for cargo operations.Other airlines, including Delta, Lufthansa, and American(NASDAQ: AAL), are also accelerating retirement plans for older aircraft because of their high operating costs and limited revenue potential in a depressed market. Beyond having too many airplanes that can't be adequately filled with paying customers in the next few years, airlines say they won't need as many workers. This week, Austrian Airlines and labor unions reached agreements on how to share the pain in order to avoid layoffs.Austrian, which has pulled all flights through the end of May, said employees have agreed to work shortened schedules and not take wage increases or inflation adjustments until 2022 in recognition that air travel demand will be slow to recover.Austrian Airlines, part of the Lufthansa Group, employs 7,000 people.Also, worker representatives agreed to reduce ground-staff salaries from March 20, 2022, until the end of 2023. The pay cuts range between 2% and 15%, depending on wage scales. Cockpit and cabin crews will forego between 5.9% and 12.7% of their salaries between 2022 and 2024 as well as pension fund contributions. Taken together, the labor changes are expected to save 80 million euros per year through 2024, or 20% of personnel costs.The Austrian Airlines situation underscores the difference between European and U.S. companies in how to deal with workforces during an economic shock. European governments have programs to subsidize the wages of dislocated workers so employers can keep them on the payrolls. In the U.S., employees are often laid off and have to look for new work. A significant chunk of the U.S. emergency funding is designed to help workers who have already lost their jobs.U.S. airlines are holding the line on involuntary furloughs at the moment thanks to tens of thousands of employees taking voluntary unpaid leave and billions in federal bailout money designed to pay workers through the end of September. Airlines claim the funds aren't enough to cover everyone at their normal schedule because they are operating with skeleton crews, so wages are paid on reduced hours. And executives have signaled that permanent layoffs are coming in the fall unless many workers take early retirement deals.On Thursday, several senators asked Delta and JetBlue to stop scaling back employees' hours, saying it violates the intent of the government's payroll assistance. United Airlines has reversed its decision to cut back hours for all employees and is allowing them to volunteer for reduced hours."These airlines are claiming that salaried employees are more protected under the CARES Act than hourly workers," said Angelo Cucuzza, special assistant to the president at the Transport Workers Union of America, in a statement. "The intent of Congress is clear: Airlines that take federal subsidies must use that money to keep their workers whole — whether they're turning a wrench, working an airport ticket counter or sitting at a desk. We're trying to save the economy and you can't do that when you're pushing workers into unemployment offices."In related news, Air Canada on Friday announced an abridged summer schedule with 97 destinations compared to 220 last year as travel restrictions loosen and it slowly rebuilds its network.See more from Benzinga * Freight markets remain stable – On The Spot (with video) * FreightWaves Flashback 1982: Customs agents go after containerized contraband * STB asks Class I railroads to report on chemicals and plastics data(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Delta and JetBlue have already received a portion of $25 billion in CARES Act money meant to protect airline workers' jobs and pay rates until Sept. 30 as the industry weathers a severe business slump during the coronavirus crisis. Delta is set to receive $5.4 billion and JetBlue $935 million. "You should not take one penny more of bailout funds unless you are prepared to protect your workers' jobs, pay and benefits," 13 senators including Elizabeth Warren and Kamala Harris, all Democrats, wrote to the airlines in two letters.
According to a new assessment from risk assessment firm RapidRatings, the U.S. airline most in danger of going bankrupt is American Airlines. Rapid Ratings CEO James Gellert joins Yahoo Finance’s On The Move panel to discuss.
The S&P 500 (SNPINDEX: ^GSPC) lost 12 points to 2,937, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) fell 27 points to 9,258. One industry that has a big task ahead of it is the airline business. Ever since local shutdowns went into effect, airline travel volumes have plunged.
Data from the Transportation Security Administration (TSA) show the number of travelers that went through TSA checkpoints on Thursday topped 300,000 for the first time in two months, but was still down significantly from a year ago. The daily average per week through Saturday is on track to show improvement for the fourth-straight week. Total TSA traveler throughput reached 318,449 on May 21, down 88% from a year ago, but up 38% from Wednesday. The daily throughput was the highest since March 23, and was nearly four times the COVID-19 pandemic low of 87,534 recorded on April 14. The daily average for the week to date has increased to 247,455, the highest since the week ended March 22. Meanwhile, airline stocks fell Friday, with the U.S. Global Jets ETF shedding 1.8%, to underperform the S&P 500 , which was down 0.2%. Among the more active Jets components, shares of United Airlines Holdings Inc. shed 2.3%, Delta Air Lines Inc. dropped 2.5% and American Airlines Group Inc. declined 1.2%.
Perhaps the sector that has taken the biggest hit due to the novel coronavirus is the travel industry, and airlines like Delta Air Lines (NYSE:DAL) stock.Source: NextNewMedia / Shutterstock.com Even the industry's bigwigs are struggling to maintain a positive outlook. In an interview conducted on May 12 on NBC, Boeing (NYSE:BA) CEO Dave Calhoun warned that it might take three to five years before the industry recovers to pre-pandemic levels, and at least one major airline could go out of business by the end of this year.Nevertheless, if there were is one airline that you would bet to bounce back, it would be Delta. The company has an innovator in the industry by revamping its pricing model and investing in foreign companies to provide a cost-effective solution to their domestic needs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Excellent Penny Stocks Ready to RoarDelta and Southwest Airlines (NYSE:LUV) are the industry's creme de la creme, outpacing the competition in generating healthy profits and free cash flows consistently. I think that Delta will survive this crisis and come out of this stronger because of its proactive approach towards controlling the situation.Let's take a closer look at some of these reasons: Delta Is Cutting CostsEvery airline company is looking to downsize; Delta is no different. The company is looking to reduce its costs by 50% by the second quarter. The reductions are likely to result in $5 billion in savings, which should be enough to offset the $200 million in unplanned expenses due to the pandemic.It also scaled back on its capital expenditures by $3 billion and is suspending its stock repurchase program and future dividend payments.Apart from this, the company announced that it would be parking 650 planes and instituting a company-wide hiring freeze along with voluntary leaves for its employees. Executive management will also be taking it on the chin by accepting significant pay reductions in the upcoming quarters.To provide further cushion, Delta is receiving $5.4 billion as part of the government's CARES Act, a $50 billion relief program specifically for the airline sector. It includes $3.8 billion for direct relief and another $1.6 billion low-interest, unsecured 10-year loan. Delta has already received $2.7 billion of funds and expects the rest in the next three months.Equity dilution due to the stock warrants offered to the governments is negligible, worth 1% of Delta stock at $24.39 per share over five years. Furthermore, the company can also get a hold of an additional $4.6 billion in secured loans, which it hasn't applied for as yet.Delta's management has disclosed a liquidity target of $10 billion for the second quarter, an increase of 66% from the previous quarter. These efforts are likely to reduce the cash burn by at least $50 million by the second quarter, which was at $100 million in the first. A Focus on the Long TermWith operations at a halt, Delta is making the most of this opportunity to focus its efforts on its long-term plays. The first area that the company is looking at involves fleet simplification, which has been one of its long-term goals for quite some time now.At its investor day last December, management talked about capitalizing on a massive opportunity to move from a mishmash fleet to one that is simpler and optimized. CEO Ed Bastian talked about this fleet transportation in the first-quarter earnings call, where he said, "Well, certainly anything that was scheduled to retire over the next five years [is on] an accelerated path towards retirement."The company will be retiring the last of its 76 MD-88s and MD-90s in early June. Its regional partner SkyWest (NASDAQ:SKYW), announced that Delta would not be renewing its flying contracts for 55 of its CRJ-200s. Additionally, it also plans to retire a few of its older Boeing 757s and 767s.These optimizations are likely to simplify operations, reduce schedule constraints, limit the frequency of training evens, and reduce fuel and maintenance costs.Another one of the company's long-term plays its critical airport infrastructure projects. The executives believe that the pandemic will speed up the construction process due to fewer constraints. With air travel muted for the foreseeable future, and if Delta gets a waiver under the revised slot usage rules, it could reduce its construction costs and streamline project timelines.The reduced project costs will directly benefit the company in controlling its debt burden. Shorter project timelines will benefit the company through dual taxiways, and the increased gate flexibility will serve mainline and regional jets. DAL Stock at a GlanceLike all airline stocks, DAL stock witnessed a massive dip in its share price since last year. It shed approximately 67% of its value since December and has been on a predominantly negative streak since then.Analysts have a relatively neutral earnings rating for the stock considering how to beat its first-quarter EPS beat estimates by 26.7%. Furthermore, they feel that the EPS will worsen in the second quarter to -$4.39 but will recover -$1.76 in the third quarter.Price targets for the DAL stock suggest shares are trading at a 40% bargain to the current share price of $23. However, the difference between the high and low estimates is $26, which is a testament to the volatility of the stock in these uncertain times. The Bottom Line on DAL StockThe coronavirus pandemic pulverized the Delta airlines stock, but it seems to have the best recovery plan compared to its competitors. It has enough liquidity to see off the crisis, and its cost-saving efforts have controlled its cash burn rate.The company is using this time to aggressively pursue its long-term plays, which will bear fruit in the near future. Therefore, despite the slowdown, DAL stock is still a buy.As of this writing, Muslim Farooque did not hold a position in any of the securities mentioned above. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Delta Stock Is Ready to Sail Through Coronavirus Clouds appeared first on InvestorPlace.