If you invested $1,000 in Delta 10 years ago, here’s how much money you’d have now

Since returning to the public market in 2007, Delta’s stock has been a consistent performer, making it a win for those who invested 10 years ago. While Delta’s stock has done well over the years, any individual stock can over- or underperform and past returns do not predict future results. CNBC: Delta stock as of October 10, 2019. As J.P. Morgan analysts put it, Delta’s prospects for the fourth quarter could be compared with “limping across the finish line.” But going into the fourth quarter, ma


Since returning to the public market in 2007, Delta’s stock has been a consistent performer, making it a win for those who invested 10 years ago. While Delta’s stock has done well over the years, any individual stock can over- or underperform and past returns do not predict future results. CNBC: Delta stock as of October 10, 2019. As J.P. Morgan analysts put it, Delta’s prospects for the fourth quarter could be compared with “limping across the finish line.” But going into the fourth quarter, ma
If you invested $1,000 in Delta 10 years ago, here’s how much money you’d have now Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: anna hecht
Keywords: news, cnbc, companies, tepper, invested, ago, 1000, fourth, deltas, heres, money, share, stock, airlines, total, quarter, thirdquarter, delta, youd


If you invested $1,000 in Delta 10 years ago, here's how much money you'd have now

Delta Air Lines was the first U.S. carrier to report third-quarter earnings this year, and despite rising costs putting pressure on the airline, strong travel demand helped its revenue and profit grow.

Since returning to the public market in 2007, Delta’s stock has been a consistent performer, making it a win for those who invested 10 years ago. A $1,000 investment in 2009 would be worth more than $6,600, as of Oct. 10, 2019, for a total return of nearly 570%, according to CNBC calculations. In the same time frame, by comparison, the S&P 500 earned a total return of nearly 240%. The Atlanta-based airline’s current share price is hovering around $54.

While Delta’s stock has done well over the years, any individual stock can over- or underperform and past returns do not predict future results.

CNBC: Delta stock as of October 10, 2019.

Despite performing well in its third quarter, Delta’s fourth quarter could be tough due to the airline’s expectation that costs, excluding fuel, could rise as much as 5% year over year, CNBC reports. As J.P. Morgan analysts put it, Delta’s prospects for the fourth quarter could be compared with “limping across the finish line.”

Delta’s stock has faced both ups and downs this year. In January, the shares tumbled almost 9% in one day after it predicted lower revenue growth. However, the stock is up almost 8% this year.

But going into the fourth quarter, many experts stand behind Delta, despite a lackluster forecast. Mark Tepper, CEO of Strategic Wealth Partners, said he’s a fan of Delta’s stock — as opposed to other popular U.S. airlines — for three main reasons.

For one, Delta doesn’t fly the Boeing 737 Max, a type of airplane which has been grounded since March after two fatal crashes, Tepper said during a recent segment of CNBC’s “Trading Nation.” Two, it has “the best maintenance team in the industry,” which helps extend the life of its aircraft, making it a good move financially. And three, Tepper supports Delta’s partnership with American Express, which he calls “the gold standard,” because it helps the company’s bottom line.

Delta gained extra business while its competitors such as Southwest and American Airlines were forced to stop operating the Max and cancel thousands of flights. While Delta CEO Ed Bastian agrees the extra market share helped the airline’s third-quarter performance, he doesn’t believe “it was the main driver,” Bastian said during a recent appearance on CNBC’s “Squawk Box.”


Company: cnbc, Activity: cnbc, Date: 2019-10-15  Authors: anna hecht
Keywords: news, cnbc, companies, tepper, invested, ago, 1000, fourth, deltas, heres, money, share, stock, airlines, total, quarter, thirdquarter, delta, youd


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Delta earnings beats Wall Street estimates

Apple removes police-tracking app used in Hong Kong protests from… The tech giant said the app violated its rules because it was used to ambush police and by criminals who used it to victimize residents in areas with no law enforcement. Technologyread more


Apple removes police-tracking app used in Hong Kong protests from… The tech giant said the app violated its rules because it was used to ambush police and by criminals who used it to victimize residents in areas with no law enforcement. Technologyread more
Delta earnings beats Wall Street estimates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-10  Authors: leslie josephs
Keywords: news, cnbc, companies, earnings, beats, residents, street, rules, wall, delta, removes, victimize, violated, policetracking, estimates, tech, app, protests, used


Delta earnings beats Wall Street estimates

Apple removes police-tracking app used in Hong Kong protests from…

The tech giant said the app violated its rules because it was used to ambush police and by criminals who used it to victimize residents in areas with no law enforcement.

Technology

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Company: cnbc, Activity: cnbc, Date: 2019-10-10  Authors: leslie josephs
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Delta is hiring 12,000 through 2020 as airline expands operations, CEO says

The struggling IPO class of 2019 could be facing another wave of… Lock up periods are expiring for new IPOs, which could introduce a new layer of pressure for some already struggling stocks this year. Marketsread more


The struggling IPO class of 2019 could be facing another wave of… Lock up periods are expiring for new IPOs, which could introduce a new layer of pressure for some already struggling stocks this year. Marketsread more
Delta is hiring 12,000 through 2020 as airline expands operations, CEO says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-10  Authors: leslie josephs
Keywords: news, cnbc, companies, ipos, stocks, periods, layer, struggling, operations, hiring, yearmarketsread, airline, ipo, expands, 12000, delta, pressure, oflock, wave, 2020, ceo


Delta is hiring 12,000 through 2020 as airline expands operations, CEO says

The struggling IPO class of 2019 could be facing another wave of…

Lock up periods are expiring for new IPOs, which could introduce a new layer of pressure for some already struggling stocks this year.

Markets

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Company: cnbc, Activity: cnbc, Date: 2019-10-10  Authors: leslie josephs
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Poor morale, sliding stock: Pressure mounts on American Airlines CEO Doug Parker

American Airlines CEO Doug Parker attends a ceremony to mark the opening of five new gates at O’Hare International Airport on May 11, 2018 in Chicago, Illinois. Scott Olson | Getty Images News | Getty ImagesMounting problems for American Airlines CEO Doug Parker can be summed up in an Instagram post by his rival at Delta. “Hi from #Santiago,” wrote Delta CEO Ed Bastian in the caption of the Oct. 1 selfie post, the Chilean capital in the background. “Morale is at an all-time low,” said Lori Bassa


American Airlines CEO Doug Parker attends a ceremony to mark the opening of five new gates at O’Hare International Airport on May 11, 2018 in Chicago, Illinois. Scott Olson | Getty Images News | Getty ImagesMounting problems for American Airlines CEO Doug Parker can be summed up in an Instagram post by his rival at Delta. “Hi from #Santiago,” wrote Delta CEO Ed Bastian in the caption of the Oct. 1 selfie post, the Chilean capital in the background. “Morale is at an all-time low,” said Lori Bassa
Poor morale, sliding stock: Pressure mounts on American Airlines CEO Doug Parker Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: leslie josephs
Keywords: news, cnbc, companies, summer, sliding, parker, stock, poor, airlines, doug, delta, max, mounts, morale, ceo, airline, americans, american, pressure


Poor morale, sliding stock: Pressure mounts on American Airlines CEO Doug Parker

American Airlines CEO Doug Parker attends a ceremony to mark the opening of five new gates at O’Hare International Airport on May 11, 2018 in Chicago, Illinois. Scott Olson | Getty Images News | Getty Images

Mounting problems for American Airlines CEO Doug Parker can be summed up in an Instagram post by his rival at Delta. “Hi from #Santiago,” wrote Delta CEO Ed Bastian in the caption of the Oct. 1 selfie post, the Chilean capital in the background. “If you’ve never been, I highly recommend. With our new partner @latamairlines, you’ll be able to explore the Americas (and the rest of the world) like never before.” It was the corporate equivalent of seeing your ex-girlfriend’s new boyfriend post their first pictures online together. Less than a week earlier, Delta announced a shocker: It plans to buy a 20% stake in Santiago-based LATAM, a blow to American that ended its two-decade partnership with what is now the largest airline in Latin America, a region where American is already strong. American failed to secure closer ties with LATAM after its proposed joint venture was blocked by the Chilean Supreme Court earlier this year, setting the stage for Delta to swoop in. American’s problems go far beyond its failed pursuit of a joint venture with LATAM, which it said without Chile’s sign-off, “would have provided limited upside.” American’s management is facing a slumping stock price, strained labor relations and unhappy customers, raising questions about how CEO Parker can turn things around.

A bad summer

The rough summer “was driven by us not flying as good an operation as we’d like,” Parker said in an interview. The airline’s latest woes have added to chatter among industry insiders about whether Parker, who is also chairman, will be able to ride out the storm. “Morale is at an all-time low,” said Lori Bassani, president of the Association of Professional Flight Attendants, which represents about 28,000 American Airlines cabin crew members. Flight attendants are “tired of apologizing for everything that’s going wrong with the airline,” she said. American has struggled with lengthy delays and cancellations this year, canceling more flights than any other airline in July, according to the Department of Transportation. Parker blamed the problem on the unions representing its mechanics, which the airline accused of an “illegal work slowdown” that prevented it from having enough aircraft at hand. The unions have denied the allegation. “When we don’t provide [flight attendants] with enough aircraft to start the day … that does have an effect on morale,” Parker said.

737 Max grounding

American’s executives have also noted that the prolonged worldwide grounding of the Boeing 737 Max has hit its revenue and growth. But the stock is lagging — more so than other carriers that are also suffering because they can’t grow as expected with the Max prohibited from flying. In late August, American’s stock hit a post-merger low. Its shares are down more than 18% so far this year, while United’s stock is up by just more than 1% and Southwest’s has risen by more than 14% as of Tuesday’s closing prices. Delta, which doesn’t fly the Max, is up by almost 7%. All four count Warren Buffett’s Berkshire Hathaway among their biggest investors. American will update investors on its third-quarter performance estimates before the market opens Wednesday, a day before U.S. airline earnings kick off with Delta on Thursday morning.

Still profitable

Despite it’s troubles, American is profitable, thanks to economic growth that has fueled demand for travel and rewards credit cards. Analysts expect it to generate per-share earnings of between $4.55 and $5.27 on nearly $46 billion in revenue this year, a 3.3% increase from last year, but they forecast less revenue and profit growth compared with Delta and United. More trouble could be on the way if there is an economic downturn. American has a higher debt load than its competitors — close to $35 billion, according to FactSet, about the same of Delta and United’s debt combined. Jonathan Root, senior vice president at Moody’s, said that American’s debt load isn’t a “survivability issue” but that its higher interest burden can hinder cash flow generation.

Succession question

Parker has been CEO of American — or the companies that preceded its current form — since 2001. Parker, 57, is the longest-running CEO of a major U.S. carrier and has outlived the average tenure of eight years for a corporate CEO, according to executive search firm Korn Ferry. But he’s has kept mum on the company’s succession planning. Industry watchers have speculated on successors for Parker, should the board decide on a new CEO, with former American executive Scott Kirby mentioned as someone with the skills to run a giant, complex airline. While Kirby led a profitable expansion as president of United, he denied any notion of rejoining American at an industry conference last week. He told the crowd he plans to end his career at United, according to travel industry site Skift.

‘Running a good airline’

Parker declined to comment on whether he’s considered stepping down and said his focus is on improving cash flow and American’s operations, particularly growing at big, profitable hubs like Dallas and Charlotte, North Carolina. “What we can do for American and our customers and our brand and our shareholders right now is make sure we’re running a good airline, something we’re good at, by the way,” Parker said. “We had a difficult summer and that certainly hurts perception from everyone. We recognize that and we care about it. We’re very happy it hasn’t continued and we’re committed to making sure it doesn’t reoccur.” Parker said American’s operations have recently improved, particularly after negotiations with the mechanics unions resumed last month and the peak summer travel months. In September, nearly 83% of American’s flights arrived on time, its best month since November 2017 and more than 4 percentage points higher than the year-earlier period. Calls to customer service that surged during the slew of summer disruptions are back to normal and on some days at below-average levels, he added. Over the summer, American Airlines customer service agents called some travelers whose flights were disrupted to apologize and offered compensation such as frequent flyer miles. The company has been studying how its brand is perceived by customers since last year, a spokesman said.

Long career

Parker has a wealth of experience — he’s been in the CEO role at a major U.S. airline for more than 18 years, taking the helm of America West days before the Sept. 11 attacks. He oversaw America West’s merger with US Airways in 2005 on the heels of US Airways’ bankruptcy and again with the US Airways merger with American in 2013 — each time leading the combined company. But a focus on keeping costs low, a strategy at US Airways, doesn’t necessarily work for American in 2019, analysts said. Under Parker, American embarked on an initiative dubbed “Project Oasis” to add thinner seats with no seatback entertainment screens to aircraft and fit more of them on board. The project was put on hold amid the 737 Max grounding. “Doug has never been able to shed that mindset,” said Henry Harteveldt, founder of consulting firm Atmosphere Research Group. The structure at the top is lean, too. American doesn’t have a chief commercial officer or a chief operations officer that could take on some of the company’s challenges.

Big challenge


Company: cnbc, Activity: cnbc, Date: 2019-10-09  Authors: leslie josephs
Keywords: news, cnbc, companies, summer, sliding, parker, stock, poor, airlines, doug, delta, max, mounts, morale, ceo, airline, americans, american, pressure


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Stocks making the biggest moves midday: TD Ameritrade, Delta Air Lines, Stitch Fix & more

‘Toxic chemical fumes,’ not oils, may be causing vaping illness,…Doctors researching the cause of a sudden respiratory illness that’s killed at least 16 people in the U.S. since July say a mix of “toxic chemical fumes,” not oils as…Health and Scienceread more


‘Toxic chemical fumes,’ not oils, may be causing vaping illness,…Doctors researching the cause of a sudden respiratory illness that’s killed at least 16 people in the U.S. since July say a mix of “toxic chemical fumes,” not oils as…Health and Scienceread more
Stocks making the biggest moves midday: TD Ameritrade, Delta Air Lines, Stitch Fix & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-02  Authors: yun li
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Stocks making the biggest moves midday: TD Ameritrade, Delta Air Lines, Stitch Fix & more

‘Toxic chemical fumes,’ not oils, may be causing vaping illness,…

Doctors researching the cause of a sudden respiratory illness that’s killed at least 16 people in the U.S. since July say a mix of “toxic chemical fumes,” not oils as…

Health and Science

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Company: cnbc, Activity: cnbc, Date: 2019-10-02  Authors: yun li
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American Express updates Delta SkyMiles cards with limited time welcome offers and new benefits

In the meantime, there are new limited time welcome offers available from October 1 to October 30, 2019. American Express announced on Monday, September 30, the upcoming relaunch of consumer and business Delta SkyMiles® American Express Cards. Starting January 30, 2020, Delta SkyMiles® American Express Cards will have benefits that offer more ways to earn miles and feature new travel benefits, such as access to The American Express Centurion® Lounges and up to $100 credit for Global Entry or TSA


In the meantime, there are new limited time welcome offers available from October 1 to October 30, 2019. American Express announced on Monday, September 30, the upcoming relaunch of consumer and business Delta SkyMiles® American Express Cards. Starting January 30, 2020, Delta SkyMiles® American Express Cards will have benefits that offer more ways to earn miles and feature new travel benefits, such as access to The American Express Centurion® Lounges and up to $100 credit for Global Entry or TSA
American Express updates Delta SkyMiles cards with limited time welcome offers and new benefits Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-30  Authors: alexandria white
Keywords: news, cnbc, companies, welcome, delta, previously, skymiles, offers, limited, updates, cards, american, directly, annual, credit, miles, purchases, benefits, express


American Express updates Delta SkyMiles cards with limited time welcome offers and new benefits

Below, CNBC Make It breaks down the new offerings.

In the meantime, there are new limited time welcome offers available from October 1 to October 30, 2019. Applicants who apply and are approved during this time can take advantage of the welcome bonus and the new benefits will be automatically added to the card on Jan. 30, 2020.

American Express announced on Monday, September 30, the upcoming relaunch of consumer and business Delta SkyMiles® American Express Cards. Starting January 30, 2020, Delta SkyMiles® American Express Cards will have benefits that offer more ways to earn miles and feature new travel benefits, such as access to The American Express Centurion® Lounges and up to $100 credit for Global Entry or TSA PreCheck fees.

Eligible new Delta SkyMiles® American Express cardholders who apply and are approved between October 1 and October 30, 2019 can enjoy the new offers listed below.

American Express and Delta worked together to come up with enhanced rewards and more perks for cardholders.

“Each card is tailored to what our customers have told us is most important to them — ranging from ways to earn even more miles to travel perks along the way,” Sandeep Dube, Delta’s SVP of customer engagement and loyalty, and CEO of Delta Vacations, said in the press release.

There’s an extensive list of changes to the new cards and we’ve listed the main additions below. For complete benefits and changes, visit NewDeltaAmex.com. Note that additional terms apply and benefits take effect starting January 30, 2020.

Consumer cards

Delta SkyMiles® Blue American Express Card:

2X miles on purchases made directly with Delta and now at restaurants worldwide (previously U.S. only)

No foreign transaction fees (previously 2.7% per transaction)

Delta SkyMiles® Gold American Express Card:

2X miles on purchases made directly with Delta and now at restaurants worldwide and U.S. supermarkets

$100 Delta flight credit after spending $10,000 annually

$99 annual fee (previously $0 first year, then $95)

Delta SkyMiles® Platinum American Express Card:

3X miles on purchases made directly with Delta (previously 2X) and now on purchases made directly with hotels

2X miles at restaurants worldwide and U.S. supermarkets

Up to $100 credit for Global Entry or TSA PreCheck fees

$250 annual fee (previously $195)

Delta SkyMiles® Reserve American Express Card:

3X miles on purchases made directly with Delta (previously 2X)

Access to The American Express Centurion® Lounge

2 Delta Sky Club® one-time guest passes

Up to $100 credit for Global Entry or TSA PreCheck fees

Access to complimentary upgrades for card members without Medallion® Status

$550 annual fee (previously $450)

Business cards

“We found when we spent a lot of time with our mutual customers that business owners want to earn for business spending,” Courtney Kelso, SVP and GM of commercial card products and consulting; global commercial services at American Express, tells CNBC Make It. This request from customers helped inform the revamped rewards program.

Below, we break down the changes you can expect on January 30, 2020.

Delta SkyMiles® Gold Business American Express Card:

2X miles on purchases made directly with Delta and now at restaurants worldwide, on U.S. shipping and U.S. advertising

$100 Delta flight credit after $10,000 annual spending

$99 annual fee (previously $0 first year, then $95)

Delta SkyMiles® Platinum Business American Express Card:

3X miles on purchases made directly with Delta (previously 2X) and now on purchases made directly with hotels

1.5X miles on each eligible purchase of $5,000 or more

Up to $100 credit for Global Entry or TSA PreCheck fees

$250 annual fee (previously $195)

Delta SkyMiles® Reserve Business American Express Card:

3X miles on purchases made directly with Delta (previously 2X)

1.5X miles on purchases after spending $150,000 per calendar year

Access to The American Express Centurion® Lounge

2 Delta Sky Club® one-time guest passes

Up to $100 credit for Global Entry or TSA PreCheck fees

Access to complimentary upgrades for card members without Medallion® Status

$550 annual fee (previously $450)

While nearly all of the changes are positive for cardholders, the annual fees are increasing for the Gold, Platinum and Reserve cards. However, that typically occurs when card issuers expand cardholder benefits.

“We believe that we’ve added so many new ways to earn more rewards, new travel enhancements and so much more value to the card that the annual fees will be commensurate with that value,” Kelso explains.

Don’t miss:

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Company: cnbc, Activity: cnbc, Date: 2019-09-30  Authors: alexandria white
Keywords: news, cnbc, companies, welcome, delta, previously, skymiles, offers, limited, updates, cards, american, directly, annual, credit, miles, purchases, benefits, express


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Stocks making the biggest moves premarket: Wells Fargo, Micron Technology, Delta, Apple & more

Check out the companies making headlines before the bell:Wells Fargo – Wells Fargo named Bank of New York Mellon CEO Charles Scharf as CEO, effective October 21. Wells Fargo has been without a permanent CEO since Tim Sloan left the bank earlier this year. Micron Technology – Micron reported adjusted quarterly profit of 56 cents per share, beating the 49 cents a share consensus estimate. The Wall Street Journal reports that Apple is reaching out to movie theater chains and also hired former IMAX


Check out the companies making headlines before the bell:Wells Fargo – Wells Fargo named Bank of New York Mellon CEO Charles Scharf as CEO, effective October 21. Wells Fargo has been without a permanent CEO since Tim Sloan left the bank earlier this year. Micron Technology – Micron reported adjusted quarterly profit of 56 cents per share, beating the 49 cents a share consensus estimate. The Wall Street Journal reports that Apple is reaching out to movie theater chains and also hired former IMAX
Stocks making the biggest moves premarket: Wells Fargo, Micron Technology, Delta, Apple & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-27  Authors: peter schacknow, thomas franck
Keywords: news, cnbc, companies, share, ceo, stock, stake, street, fargo, revenue, moves, wells, premarket, stocks, technology, delta, wall, making, company, biggest, micron


Stocks making the biggest moves premarket: Wells Fargo, Micron Technology, Delta, Apple & more

Check out the companies making headlines before the bell:

Wells Fargo – Wells Fargo named Bank of New York Mellon CEO Charles Scharf as CEO, effective October 21. Wells Fargo has been without a permanent CEO since Tim Sloan left the bank earlier this year. BNY Mellon named CFO Thomas Gibbons as its interim CEO.

Micron Technology – Micron reported adjusted quarterly profit of 56 cents per share, beating the 49 cents a share consensus estimate. The chipmaker’s revenue beat forecasts, as well. Micron’s projected current-quarter earnings came in largely below Wall Street targets, however, with the company saying it was “mindful” of economic and trade uncertainty.

Delta Air Lines – Delta will buy a 20% stake in Latam Airlines for $1.9 billion in cash and debt. The investment in South America’s biggest airline is Delta’s largest since its merger with Northwest Airlines in 2008.

Las Vegas Sands – Las Vegas Sands has been added to the S&P 500, effective October 3. The casino operator’s stock will replace Nektar Therapeutics in the benchmark index, with Nektar moving to the S&IP Midcap 400.

Apple – Apple is reportedly planning to bring feature-length films to movie theaters, ahead of their release on the new Apple TV+ streaming service. The Wall Street Journal reports that Apple is reaching out to movie theater chains and also hired former IMAX executive Greg Foster as a consultant for this effort.

Toyota Motor – Toyota will raise its stake in fellow Japanese automaker Subaru to 20% from about 17%. Its investment is worth about $650 million, with Subaru planning to reciprocate by taking a stake in Toyota of approximately the same value.

Peloton – The fitness bicycle maker’s stock remains on watch, after falling 11% in its Wall Street debut Thursday. That was the second-largest first-day drop for a so-called “unicorn” IPO this year, with only SmileDirectClub taking a bigger first-day tumble.

Vail Resorts – Vail lost $2.22 per share for its fiscal fourth quarter, smaller than the $2.53 per share loss anticipated by Wall Street. The resort operator’s revenue came in above estimates, however, and the company said it is seeing strong season pass sales for the upcoming ski season.

Marathon Petroleum – CEO Gary Heminger is under fire, with The Wall Street Journal reporting that large shareholders Paul Foster and Jeff Stevens are calling for Heminger’s ouster. The two are also backing a proposal by Elliott Management to split the company into three separate units. In response, Marathon issued a statement saying the board supports Heminger.

General Motors – GM and the United Auto Workers may need more than a week to reach a tentative contract agreement, according to the Detroit Free Press. The strike by GM workers enters its 12th day today.

Box – Box was downgraded to “underweight” from “neutral” at JPMorgan Chase, which cited valuation and intensifying competition for the cloud software company.

Lyft – The ride-sharing service’s stock was rated “outperform” in new coverage at Wells Fargo, based partly on its view that revenue per active rider will grow faster than expected.


Company: cnbc, Activity: cnbc, Date: 2019-09-27  Authors: peter schacknow, thomas franck
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JetBlue rallies after an analyst upgrade, but some experts prefer this airline stock

The NYSE Arca Airline Index, which tracks the group, has fallen 13% this month, weighed down by double-digit losses in shares of American Airlines, down 17% and JetBlue, off 13%. The group could still be “due for … some near-term relief,” said Wald, flagging Air Canada’s stock as his favorite overseas investment and Delta Airlines as his domestic pick. “But within transports, we would prefer airlines over trucking and rail, and that’s mainly because the consumer is still so strong.” “So, I lik


The NYSE Arca Airline Index, which tracks the group, has fallen 13% this month, weighed down by double-digit losses in shares of American Airlines, down 17% and JetBlue, off 13%. The group could still be “due for … some near-term relief,” said Wald, flagging Air Canada’s stock as his favorite overseas investment and Delta Airlines as his domestic pick. “But within transports, we would prefer airlines over trucking and rail, and that’s mainly because the consumer is still so strong.” “So, I lik
JetBlue rallies after an analyst upgrade, but some experts prefer this airline stock Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-29  Authors: lizzy gurdus
Keywords: news, cnbc, companies, shares, theyve, rallies, stock, trading, prefer, right, airline, analyst, airlines, wald, upgrade, tepper, jetblue, delta, think, group, experts


JetBlue rallies after an analyst upgrade, but some experts prefer this airline stock

Airline stocks have hit some turbulence.

The NYSE Arca Airline Index, which tracks the group, has fallen 13% this month, weighed down by double-digit losses in shares of American Airlines, down 17% and JetBlue, off 13%.

But after a bullish call on JetBlue from Deutsche Bank analysts, who flagged an “attractive entry point” emerging in shares of the travel play on Wednesday, the group turned, with JetBlue rallying over 1%.

Still, some are skeptical that this marks the start of a sustained recovery for the airlines.

“Overall, we’re going to stay on the runway on this one,” Ari Wald, head of technical analysis at Oppenheimer, told CNBC’s “Trading Nation” on Wednesday. “Just not a lot of conviction here to own them. They rank low in our momentum work. But I will say, tactically, they are oversold, so I don’t think now is the time to bet against them, either.”

The group could still be “due for … some near-term relief,” said Wald, flagging Air Canada’s stock as his favorite overseas investment and Delta Airlines as his domestic pick.

“One of the better charts in this mixed-to-weak group would be Delta,” he said.

“It’s one of the few still above its 200-day moving average,” Wald said. “This is the one I’d say we wouldn’t bet against, at least. While we’re not recommending to buy it here, I think if you do own Delta, keep an eye on that 200-day moving average right around $54 and change. If it starts to break below there, I think you have trouble, but more positive than not above that line.”

Mark Tepper, president and CEO of Strategic Wealth Partners, also liked Delta’s positioning vis-a-vis the struggling sector.

“Transports in general have been on the struggle bus this year,” he said in the same “Trading Nation” interview. “But within transports, we would prefer airlines over trucking and rail, and that’s mainly because the consumer is still so strong.”

With consumer confidence still high, wages on the rise and household net worth near all-time highs, consumers are still feeling financially comfortable, which benefits air travel stocks, Tepper said. Delta, he added, is best-positioned to reap those benefits.

“We own Delta, and that’s definitely our favorite name here,” he said. “They’ve got zero 737 Max exposure, so what that does is it gives Delta the ability to grow their capacity while their competitors are in time-out right now. They’ve got this partnership with [American Express], which is by far the gold standard for rewards and loyalty programs amongst airlines, and it gives them high-margin business that literally costs them nothing and it makes them less cyclical. ”

“On top of all that, they’ve got the best maintenance team in the business, and that gives them the ability to extend the useful life of their aircraft and therefore boost margins as well,” Tepper said. “So, I like the stock right here, right around 57 bucks. If it pulls back to $55, that would be an ideal entry point for anyone trying to build a position right now.”

Delta shares closed just under the $57 level on Wednesday, having climbed nearly 1% by the end of the trading session.

Disclosure: Strategic Wealth Partners owns shares of Delta.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2019-08-29  Authors: lizzy gurdus
Keywords: news, cnbc, companies, shares, theyve, rallies, stock, trading, prefer, right, airline, analyst, airlines, wald, upgrade, tepper, jetblue, delta, think, group, experts


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New head of the FAA inherits an agency in turmoil after Boeing 737 Max crashes

Stephen Dickson, administrator of Federal Aviation Administration (FAA) nominee for U.S. President Donald Trump, speaks during a Senate Commerce, Science & Transportation confirmation hearing in Washington D.C., U.S., on Wednesday, May 15, 2019. President Donald Trump’s pick to lead the Federal Aviation Administration was confirmed by the Senate on Wednesday, a vote that hands the former Delta Air Lines executive the reins of an agency in turmoil after two fatal Boeing 737 Max crashes. Senate vo


Stephen Dickson, administrator of Federal Aviation Administration (FAA) nominee for U.S. President Donald Trump, speaks during a Senate Commerce, Science & Transportation confirmation hearing in Washington D.C., U.S., on Wednesday, May 15, 2019. President Donald Trump’s pick to lead the Federal Aviation Administration was confirmed by the Senate on Wednesday, a vote that hands the former Delta Air Lines executive the reins of an agency in turmoil after two fatal Boeing 737 Max crashes. Senate vo
New head of the FAA inherits an agency in turmoil after Boeing 737 Max crashes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: leslie josephs
Keywords: news, cnbc, companies, boeing, max, aviation, grounding, dickson, inherits, crashes, transportation, senate, 737, faa, agency, planes, head, turmoil, stephen, delta


New head of the FAA inherits an agency in turmoil after Boeing 737 Max crashes

Stephen Dickson, administrator of Federal Aviation Administration (FAA) nominee for U.S. President Donald Trump, speaks during a Senate Commerce, Science & Transportation confirmation hearing in Washington D.C., U.S., on Wednesday, May 15, 2019.

President Donald Trump’s pick to lead the Federal Aviation Administration was confirmed by the Senate on Wednesday, a vote that hands the former Delta Air Lines executive the reins of an agency in turmoil after two fatal Boeing 737 Max crashes.

Democratic lawmakers had opposed the nomination of Stephen Dickson, Delta’s former senior vice president of flight operations, citing a lawsuit brought by a Delta pilot who accused the airline of retaliating against her for flagging safety concerns during Dickson’s tenure. Delta said it does not tolerate retaliation against employees who raise those concerns.

The FAA hasn’t had a permanent chief since January 2018 and interim head Daniel Elwell has been at the helm during two crashes of Boeing passenger planes — one in Indonesia and another in Ethiopia — that killed all 346 people aboard the flights.

Senate voted 52-40 to confirm Dickson as administrator of an agency that will determine when to lift the 737 Max grounding, now in its fifth month. Boeing shares slipped close to 3% on Wednesday after its executives warned investors that it could suspend production of the jets altogether if the grounding drags on longer than expected.

Dickson will have to navigate numerous investigations and increased scrutiny of the FAA’s certification process, and its approval of the planes in 2017. The use of Boeing employees in the certification process, a longstanding practice, has raised concerns among lawmakers and others that the regulator and a company it oversees were too close.

Crash investigators have implicated new, automated flight-control software that repeatedly pushed down the nose of both of the Boeing planes repeatedly as they took their fatal dives. Some pilots said they didn’t know the systems existed until after the first crash.

The FAA also drew scrutiny as the last major aviation authority to order airlines to ground the planes after the second crash, a sharp shift from the agency’s usual lead role in air safety issues, like the grounding of Boeing’s 787s due to battery fires in 2013.

Dickson worked for Delta for nearly three decades and retired last year. He is a former airline captain and a former F-15 fighter pilot.

Dickson will have to divest his Delta stock before he is sworn in, according to the Department of Transportation.


Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: leslie josephs
Keywords: news, cnbc, companies, boeing, max, aviation, grounding, dickson, inherits, crashes, transportation, senate, 737, faa, agency, planes, head, turmoil, stephen, delta


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Delta says the next big battle between airlines will take place on the ground

PhotoAlto/Thierry Foulon | Brand X Pictures | Getty ImagesThere are some aspects of the airport experience that airlines can’t do anything about. For the airlines like Delta, it does not matter that some of the terminal experience is beyond their control. Delta is collecting as much data as it can from passengers to improve the travel experience. Wall Street is watchingWall Street is focusing more on the airport experience in its analysis of airline stocks. Delta is among the airlines that have


PhotoAlto/Thierry Foulon | Brand X Pictures | Getty ImagesThere are some aspects of the airport experience that airlines can’t do anything about. For the airlines like Delta, it does not matter that some of the terminal experience is beyond their control. Delta is collecting as much data as it can from passengers to improve the travel experience. Wall Street is watchingWall Street is focusing more on the airport experience in its analysis of airline stocks. Delta is among the airlines that have
Delta says the next big battle between airlines will take place on the ground Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-21  Authors: eric rosenbaum, leslie josephs
Keywords: news, cnbc, companies, battle, ground, place, airport, experience, travel, jacobson, airports, making, delta, mayerowitz, big, airlines, airline


Delta says the next big battle between airlines will take place on the ground

The airline industry is experiencing strong financial performance — Delta Air Lines recently hit a record stock price, and United Airline Holdings grew profits in its latest earnings as the U.S. economy continues its decade-long run. In fact, airline industry conditions are so good, longtime airline-stock hater Warren Buffett of Berkshire Hathaway became one of the sector’s biggest investors in recent years after a wave of consolidation brought the fleets closer to the almost monopoly conditions he looks for in businesses. But other recent highs in air travel are not so positive: Airports all over the country are setting new records in monthly passenger levels, making the airport experience one of the worst “legs” in a traveler’s journey. As a result, major airlines flush with money for reinvestment are making the on-the-ground experience a greater focus of their efforts to out-compete rival carriers. “I think the next area of competition in air travel is in the airport,” Paul Jacobson, executive vice president and CFO of Delta said at the CNBC @Work Human Capital + Finance conference in Chicago last Tuesday. “How do you continue to streamline the on-the-ground experience. It is a big part of how passengers rate the experience.” In major metro areas the two biggest issues in airport satisfaction are access to the airport (with so many major airports far from city centers) and the terminal itself, at No. 1, according to J.D. Power. “The most common PR headline from any airport any month is ‘X airport sets new monthly passenger record,'” said Mike Taylor, J.D. Power’s travel practice leader. But that does not necessarily mean it is good PR with so many airports so dated.

PhotoAlto/Thierry Foulon | Brand X Pictures | Getty Images

There are some aspects of the airport experience that airlines can’t do anything about. Only 6% more airports have been built in the U.S. since 1980, despite 181% more domestic passengers. “They can’t build another four-lane highway to the airport,” Taylor said. “Most of the airports are shoehorned into areas never meant to handle this much traffic.” Those problems don’t end once at the airport, either: Many parking lots closest to terminals at some of the busiest U.S. airports are now completely full and closed on multiple days per week. This is the type of on-the-ground frustration that leads to missed flights, and missed flights lead to the blame being placed all around. “People are more stressed on the airport and airlines side of things, and they blame both,” Taylor said. For the airlines like Delta, it does not matter that some of the terminal experience is beyond their control. Taylor said that when an aircraft closes and sits on the ground because the FAA is holding them there, passengers do not complain about the FAA. “They paid the airline, and they pick up the cocktail napkin and swear at it.” For more on tech, transformation and the future of work, join CNBC at the @ Work: People + Machines Summit in San Francisco on Nov. 4. Leaders from Dropbox, Sas, McKinsey and more will teach us how to balance the needs of today with the possibilities of tomorrow, and the winning strategies to compete. Scott Mayerowitz, executive editorial director of travel information site The Points Guy, said the airport experience is unique in the travel journey as being so bad, and it is an important part of the journey that is underexamined. “Until my head hits the pillow in a hotel room, I am on the go, and it all matters,” Mayerowitz said. Delta is collecting as much data as it can from passengers to improve the travel experience. “We survey everything,” Jacobson told those attending the CNBC event in Chicago. “A lot of that comes down to the psychology of the customer and understanding what each leg in the journey makes the customer feel like.”

Wall Street is watching

Wall Street is focusing more on the airport experience in its analysis of airline stocks. Hunter Keay, a Wolfe Research analyst who covers Delta, wrote that the Delta CFO is correct in his focus on the airport as a competitive key. Keay wrote in a late 2018 research note that Delta’s major investment in “investment-starved airports” like New York City’s LaGuardia “are not so much an act of generosity but a strategic decision that we believe will further widen DAL’s competitive advantage to peers by driving up costs for marginal competitors there that lack scale, pricing power, or both. … This is literally a 20-year competitive advantage DAL is building today, arguably the hardest one yet for competitors to copy.” Delta is investing $12 billion over a five-year period investing in its airport infrastructure, primarily at New York City’s LaGuardia, Los Angeles International, Seattle-Tacoma International Airport, Salt Lake City International Airport and Hartsfield-Jackson Atlanta International Airport. “Airports have always been a challenge for airlines who haven’t been able to crack that code due to more pressing capital needs internally, fear of committing to longer-term, big dollar projects due to business cycle risk with questionable balance sheets, or the challenges of driving buy-in or consensus with the government agencies that run these airports. But it seems to us that DAL is figuring this thing out,” Keay wrote. One of the terminal chokepoints where Delta made an investment is through a stake it owns in biometric screening company Clear. Jacobson pointed to the Clear investment as part of its efforts to streamline the passenger experience through investments in technology. “We’ve made big bets in technology in the past few years thinking we can turn it around into revenue generation,” the Delta CFO said at the CNBC event. Jacobson said technology like Clear should ultimately improve the experience beyond the security checkpoint. “I think ultimately the technology around identification, whether facial recognition or fingerprints, is coming to all transactions,” Jacobson said. “Delta has recognized that security is a horrible headache for people,” Mayerowitz said. “Clear is at many more airports than before because of the Delta investment, and they’ve done saturation at their key hubs. ” Mayerowitz, who is a Clear member, added, “In two to three minutes at LGA or JFK, I can make it from the curb to the other side of security. Clear gets me to the front of the precheck line, and I just put my bag in and walk through and I’m done.”

The timing is right for airlines

A focus on future revenue is one of the reasons why Delta is making the investments now, before a recession hits and operating conditions weaken. Yael Taqqu, a senior partner at management consultant McKinsey, who spoke on a panel with Jacobson at CNBC’s @Work Human Capital + Finance conference, said investments like the ones Delta is making now are designed to be “revenue enhancements” out ahead of the next downturn. “In a downturn, the wedge between digital haves and have nots, which is already wide, will get wider,” said Taqqu. Taylor said the timing is right from an airline industry perspective too. “You have to have three things happen to really expand airports. The economy has to be good, the airline has to be making money, and policies have to be right. These days, we have all three of them working in the airlines favor. … When they are not making money, those things get put on hold. They would like to have everything set up for the passenger to be happy before getting on the craft.” Airlines also are running out of ways to improve and “disaggregate” — price-tier — the in-cabin experience. “Right now airlines have healthy profits and are reinvesting,” Mayerowitz said. “Delta likes to brag that they have the most inflight seatback TVs of any airline, and they’ve built a business around what they say is a superior product in the sky, and it commands a revenue premium, people willing to spend $10-$15 extra. But at the end of the day, there is only so much you can do to increase costs in the sky.” He added of Delta’s focus on the terminal, “They are right, especially as airlines cram more seats into planes and come up with hideous slim-line bathrooms just so they can get an extra row of seats in.” Delta is among the airlines that have cut down bathroom size in some cabins to add an extra back row.

Airports are just pretty bus terminals. There is only so much you can do. Scott Mayerowitz The Points Guy executive editorial director


Company: cnbc, Activity: cnbc, Date: 2019-07-21  Authors: eric rosenbaum, leslie josephs
Keywords: news, cnbc, companies, battle, ground, place, airport, experience, travel, jacobson, airports, making, delta, mayerowitz, big, airlines, airline


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