|Bid||23.86 x 1000|
|Ask||23.89 x 800|
|Day's range||22.67 - 25.85|
|52-week range||19.10 - 63.44|
|Beta (5Y monthly)||1.59|
|PE ratio (TTM)||3.22|
|Earnings date||07 Apr 2020 - 12 Apr 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||18 Feb 2020|
|1y target est||44.60|
Witnessing more than 80% drop in demand, Alaska Airlines, the subsidiary of Alaska Air Group (ALK), plans to trim April and May schedules by 80%.
The Zacks Analyst Blog Highlights: Delta Air Lines, American Airlines, Ryanair, Avianca and JetBlue Airways
(Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. unloaded shares this week in Delta Air Lines Inc. and Southwest Airlines Co. as U.S. carriers braced for an unprecedented collapse in travel demand because of the coronavirus pandemic.Berkshire cut its Southwest holding by 4% and its Delta stake by 18%, according to regulatory filings Friday. That reduced the exposure of Buffett’s company to an industry in freefall, with Delta predicting a 90% drop in second-quarter sales and competitors making similarly dire forecasts.U.S. airlines, which enticed Berkshire three years ago despite Buffett’s longtime skepticism of the industry, are now turning to the government for financial aid as passengers stay home amid the viral outbreak. Drastic cuts to flight schedules reflect the virtual disappearance of U.S. airline traffic, with barely more than 150,000 passengers flying nationwide on any given weekday compared with normal loads of more than 2.2 million.“I wish I could predict this would end soon, but the reality is we simply don’t know how long it will take before the virus is contained and customers are ready to fly again,” Delta Chief Executive Officer Ed Bastian told employees. “Unfortunately, even as Delta is burning more than $60 million in cash every day, we know we still haven’t seen the bottom.”Delta fell 10% to $20.15 after the close of regular trading in New York, with Southwest and other airlines down as well. A Standard & Poor’s index of major U.S. carriers has tumbled 60% this year, paced by the 74% drop of United Airlines Holdings Inc.Federal AidAirlines are applying for federal aid as the government steps in with cash assistance for passenger carriers of $25 billion to help make payroll, plus another $25 billion in loans.United and American Airlines Group Inc. -- in which Berkshire also owns stakes -- are seeking help, as are Delta, Southwest, JetBlue Airways Corp. and Alaska Air Group Inc. The carriers submitted proposals for payroll assistance Friday. Several said they would negotiate terms in the coming days with the U.S. Treasury, which declined to comment.But as their customers stop flying, the companies said they would be forced to do more to reduce costs and seek additional capital because the government aid won’t be enough.About 30,000 of Delta’s workers have applied for unpaid, voluntary leaves and “we continue to need more volunteers,” Bastian said.Parked JetsJetBlue is parking more than 100 planes out of its fleet of 259 and cut its April flying schedule by 70%.“We’ve shared with you in the past weeks the unprecedented decline in demand for travel, and the situation continues to deteriorate,” JetBlue CEO Robin Hayes said in a message to employees.United is chopping about 80% of its capacity this month to curb costs, with even larger cuts planned in May. The weakness is likely to linger, with United planning for sales “at least 30%” lower in the fourth quarter than in the same period last year, according to a regulatory filing.The airline said it will “proactively evaluate and cancel flights on a rolling 90-day basis until it sees signs of a recovery in demand.”Berkshire has seen enough to pare its holdings. Buffett’s company still has a $1.32 billion stake in Delta and a $1.57 billion investment in Southwest. Berkshire has to report mid-quarter changes because its holdings in those airlines are above a 10% threshold.Berkshire InvestmentsBuffett’s company also has previously reported investments in American and United, but doesn’t have to disclose changes to those stakes as frequently since he’s below a 10% ownership level. Buffett’s assistant didn’t immediately respond to a message seeking comment.The billionaire was a longtime critic of the airline industry after making a bet on US Airways that he called a “mistake.” He even once joked that capitalists should have shot down the Wright brothers’ plane and saved money for investors.In late 2016, however, Berkshire revealed major investments in the big U.S. airlines. Buffett has said that some of the issues in the industry had stabilized as competition dwindled.Berkshire’s large stakes have stoked speculation that it could buy one of the airlines given that Buffett’s company had nearly $128 billion in cash at the end of the year. But the investor said in February that that would be “very unlikely” since such a deal would be complicated in the highly regulated industry.Since then, the airlines have plunged into the worst crisis in their history.“If anyone tells you that they’ve seen anything like this before,” said JetBlue’s Hayes, “don’t believe them.”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.
(Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. spent this week selling shares of Delta Air Lines Inc. and Southwest Airlines Co.Berkshire sold nearly 13 million shares in Delta and roughly 2.3 million shares of Southwest, according to regulatory filings Friday. That left Buffett’s company with a $1.32 billion stake in Delta and a $1.57 billion holding of Southwest stock.Airlines across the U.S. have been pummeled by a steep drop-off in travel as the coronavirus spreads throughout the country. Delta Chief Executive Officer Ed Bastian said Friday in a memo that it expects second-quarter revenue to fall 90%.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.
(Reuters) - Warren Buffett's Berkshire Hathaway Inc said on Friday it has sold some of its stake in Delta Air Lines Inc . Berkshire is among the largest investors in the carrier.
U.S. airlines must refund passengers when they cancel flights due to the coronavirus pandemic, the federal government said Friday, a blow to at least two carriers that have been making it difficult for customers to recover their money. The pro-consumer move is consistent with the U.S. Department of Transportation's usual policy, though there was some […]
Due to dried-up air-travel demand, airlines like Southwest Airlines (LUV) and Delta Air Lines (DAL) are offering cargo charter services on passenger planes.
(Bloomberg Opinion) -- In 2017, the British billionaire Richard Branson agreed to cut his stake in Virgin Atlantic Airways Ltd. to just 20% by selling one-third of the airline to Air France-KLM. In December, he had a change of heart about that 220 million-pound ($274 million) deal, and opted to keep his shareholding in the company he founded at 51%. America’s Delta Air Lines Inc. owns the other half. Branson has referred to the transatlantic carrier as “one of my children”. But with most of the Virgin Atlantic fleet now grounded because of the coronavirus restrictions, he probably wishes he’d taken Air France’s money. The company is now consuming cash at a rapid clip.To help alleviate a financial crunch, Virgin Atlantic is calling on Boris Johnson’s British government to provide 500 million pounds of government-backed loans and credit guarantees, so that credit card processors don’t hold onto its cash. Airbus SE and Rolls-Royce Holdings Plc, which respectively sold planes and engines to Virgin Atlantic, have also been lobbying the U.K. on Virgin Atlantic’s behalf, the Financial Times reported.It’s hard to fathom why Johnson would throw Virgin Atlantic a lifeline before its American and British Virgin Islands domiciled shareholders have reached deeper into their own pockets. Branson himself is worth $5.2 billion, according to the Bloomberg Billionaires Index.So far, the tycoon has injected $250 million into his various Virgin companies, of which more than $100 million has gone to the airline, according to Sky News. But that clearly isn’t enough. While Virgin Atlantic’s financial performance may have improved before the coronavirus hits, in total it lost more than $100 million during 2017 and 2018 — the two most recent years for which its accounts are available.That’s one reason its balance sheet is weaker than its European peers. Lease-adjusted net debt was five times higher than a comparable measure of earnings, according to the latest group accounts (which includes the travel operator Virgin Holidays). Air France-KLM — by no means the strongest airline financially — has net debt of 1.5 times the same earnings measure. While Virgin Atlantic had almost 500 million pounds of cash at the end of December 2018, much of that money came from customers paying for tickets long before they traveled. Its current liabilities far exceeded its current assets, which is a problem if customers start asking for their money back because they can’t fly.It’s hardly surprising that Airbus and Rolls-Royce are taking Branson’s side, but neither of them were under any obligation to sell aircraft and equipment to a financially stretched airline. Virgin Atlantic had 2.6 billion pounds of future capital commitments for things like planes and engines, according to the 2018 accounts, a pile it added to last summer by placing an order for 14 Airbus A330neos.The parent company, Virgin Travel Group Ltd, further extended itself by providing about 40 million pounds of funding to a regional U.K., airline Flybe Ltd, which subsequently went bust. Pandemics are a known risk when you’re running an airline, but nobody could anticipate a shock as widespread and potentially long-lasting as this. So some government assistance is probably justified — in view of the roughly 8,500 jobs at stake. However, the British government’s offer to cover 80% of the wages of furloughed workers is already pretty generous; Virgin Atlantic’s yearly wage bill is more than 300 million pounds.It’s harder to understand why a government should provide loans or guarantees to Virgin Atlantic, when its shareholders or commercial lenders don’t seem willing to — beyond what Branson has chipped in.In fairness, the other big shareholder, Delta, is also in a tight spot. It’s burning through about $50 million of cash a day and Standard & Poor’s, a credit rating agency, has downgraded its debt to junk. However, the U.S. airline successfully extended its credit lines and its government has promised $50 billion in assistance for the industry. Delta’s market value remains above $15 billion. If Branson is short of ready cash, there are other assets he could perhaps monetize, including a majority stake in space company Virgin Galactic Holdings Inc., whose market capitalization is a lofty $2.9 billion. If no more money is forthcoming from the owners, the British government should insist that Branson dilutes his ownership of Virgin Atlantic as originally planned; only this time by signing over the equity to taxpayers.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Delta (DAL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The Zacks Analyst Blog Highlights: Delta Air, American Airlines, United Airlines, Southwest and JetBlue
American Airlines (AAL) assures to sustain jobs and pay packets for six months by choosing to apply for the coronavirus-related government relief.
Market forces rained on the parade of Delta Air Lines, Inc. (NYSE:DAL) shareholders today, when the analysts...
Editor's Note: Please join my colleagues and Tori Barnes from the U.S. Travel Association online at noon on April 1 for a live discussion of these issues and themes. We'll present details from multiple industry sectors as well as explain what we know as of now. You can register here. I hope to (virtually) see […]
Some U.S. airlines paint a bleak picture despite the coronavirus rescue package offering them $25 billion in grants to bear their payroll expenses over the next six months.
U.S. passenger airlines are eligible to receive $25 billion in grants under the stimulus package for meeting their payroll expenses over the next six months.