Delta warns of flight delays after technical problem snarls check-ins and boarding

I tried out 21 days as a vegetarian. Here’s what I learned about…Meatless alternatives are on the rise, fueled by startups and companies. CNBC’s Uptin Saiidi tried out 21 days as a vegetarian and explores whether this is a fad or the future…Food & Beverageread more


I tried out 21 days as a vegetarian. Here’s what I learned about…Meatless alternatives are on the rise, fueled by startups and companies. CNBC’s Uptin Saiidi tried out 21 days as a vegetarian and explores whether this is a fad or the future…Food & Beverageread more
Delta warns of flight delays after technical problem snarls check-ins and boarding Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: leslie josephs
Keywords: news, cnbc, companies, warns, boarding, days, delta, checkins, tried, technical, rise, learned, saiidi, 21, flight, startups, snarls, uptin, vegetarian, heres, delays, problem


Delta warns of flight delays after technical problem snarls check-ins and boarding

I tried out 21 days as a vegetarian. Here’s what I learned about…

Meatless alternatives are on the rise, fueled by startups and companies. CNBC’s Uptin Saiidi tried out 21 days as a vegetarian and explores whether this is a fad or the future…

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Company: cnbc, Activity: cnbc, Date: 2019-06-19  Authors: leslie josephs
Keywords: news, cnbc, companies, warns, boarding, days, delta, checkins, tried, technical, rise, learned, saiidi, 21, flight, startups, snarls, uptin, vegetarian, heres, delays, problem


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Delta CEO urges UTC to ‘stay focused’ after Raytheon deal announcement

Delta Air Lines CEO Ed Bastian said his company has one message for United Technologies after it announced its merger with Raytheon: “Stay focused.” Raytheon and United Technologies on Sunday announced they would merge in an all-stock deal, creating a company with combined annual sales of $74 billion. United Technologies owns aerospace manufacturer Pratt & Whitney, which produces engines for many of Delta’s planes. Delta jets also have a number of products aboard them made by Collins Aerospace,


Delta Air Lines CEO Ed Bastian said his company has one message for United Technologies after it announced its merger with Raytheon: “Stay focused.” Raytheon and United Technologies on Sunday announced they would merge in an all-stock deal, creating a company with combined annual sales of $74 billion. United Technologies owns aerospace manufacturer Pratt & Whitney, which produces engines for many of Delta’s planes. Delta jets also have a number of products aboard them made by Collins Aerospace,
Delta CEO urges UTC to ‘stay focused’ after Raytheon deal announcement Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: ashley turner
Keywords: news, cnbc, companies, utc, technologies, company, raytheon, stay, united, rethink, urges, announcement, merger, deal, delta, ceo, investors, focused


Delta CEO urges UTC to 'stay focused' after Raytheon deal announcement

Delta Air Lines CEO Ed Bastian said his company has one message for United Technologies after it announced its merger with Raytheon: “Stay focused.”

“UTC is a big partner of ours, a big supplier of ours,” Bastian said in an interview with CNBC’s Carl Quintanilla. “They’ve gone through some mergers, there’s been some distractions along the way.”

Bastian’s comments come as some investors and activists speak out against the planned deal.

Raytheon and United Technologies on Sunday announced they would merge in an all-stock deal, creating a company with combined annual sales of $74 billion. When the merger is complete, it will be renamed Raytheon Technologies.

United Technologies owns aerospace manufacturer Pratt & Whitney, which produces engines for many of Delta’s planes. Delta jets also have a number of products aboard them made by Collins Aerospace, another subsidiary of United Technologies.

If the deal goes through, shareholders of United Technologies will own 57% of the new company’s stock, while Raytheon investors would own 43% on a diluted basis.

However, some activists are pressing United Technologies to rethink the merger.

Billionaire investor Bill Ackman sent a letter to United Technologies CEO Greg Hayes urging the company to rethink its deal with Raytheon, a source told CNBC. Ackman, whose hedge fund Pershing Square Capital Management owned 5.8 million United Technologies shares at the end of the first quarter, expressed his unease about the deal.


Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: ashley turner
Keywords: news, cnbc, companies, utc, technologies, company, raytheon, stay, united, rethink, urges, announcement, merger, deal, delta, ceo, investors, focused


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Consumer confidence in 737 Max jets ‘going to take a while to come back,’ says Delta CEO Ed Bastian

As airlines extend cancellations of the grounded Boeing 737 Max, Delta Air Lines CEO Ed Bastian said he thinks it’ll likely take “longer than anyone would like it to be” for the jets to return to service. “So I think Boeing, as well as the airlines, will certainly be cautious as they bring that aircraft back to market. The 737 Max has been grounded across the globe since mid-March after a deadly crash involving the jet in Ethiopia. Delta does not have any 737 Max jets in its fleet, which has hel


As airlines extend cancellations of the grounded Boeing 737 Max, Delta Air Lines CEO Ed Bastian said he thinks it’ll likely take “longer than anyone would like it to be” for the jets to return to service. “So I think Boeing, as well as the airlines, will certainly be cautious as they bring that aircraft back to market. The 737 Max has been grounded across the globe since mid-March after a deadly crash involving the jet in Ethiopia. Delta does not have any 737 Max jets in its fleet, which has hel
Consumer confidence in 737 Max jets ‘going to take a while to come back,’ says Delta CEO Ed Bastian Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: ashley turner
Keywords: news, cnbc, companies, travel, ed, bastian, consumer, come, boeing, 737, think, international, delta, going, confidence, max, jets, ceo


Consumer confidence in 737 Max jets 'going to take a while to come back,' says Delta CEO Ed Bastian

As airlines extend cancellations of the grounded Boeing 737 Max, Delta Air Lines CEO Ed Bastian said he thinks it’ll likely take “longer than anyone would like it to be” for the jets to return to service.

“I just think consumer confidence in the product is going to take a while to come back,” Bastian told CNBC’s Carl Quintanilla in a wide-ranging interview. “So I think Boeing, as well as the airlines, will certainly be cautious as they bring that aircraft back to market. Certainly that’s what we would be. ”

The 737 Max has been grounded across the globe since mid-March after a deadly crash involving the jet in Ethiopia. Less than five months earlier, a Boeing Max crashed in Indonesia. The disasters killed a total of 346 people. Investigators said the jet’s MCAS flight control system, which is designed to push the aircraft’s nose down to prevent stalling, was involved in the crashes.

Boeing said it has completed software changes for the jets, but the Federal Aviation Administration and other international flight agencies have yet to approve the updates.

Delta does not have any 737 Max jets in its fleet, which has helped its stock to perform better than some of its peers that do. Delta shares, which have a market value of $36.3 billion, are nearly 10% higher this year, while American and United have seen their stocks decline.

Bastian said Boeing is a “great” company that has “all hands on deck” to solve the software issue.

“Their innovation creates magic for us,” Bastian said. “It’s our lifeblood to what we do.”

American, United and Southwest all fly the 737 Max, but have been forced to cancel flights involving the jets. The FAA has yet to say when the aircraft can return to service, but Boeing’s CEO Dennis Muilenburg has predicted the planes will be up and running by the end of the year.

“I don’t think this is a marketing issue, I think this is a time issue,” Bastian said. “It’s going to take time for people to see the confidence that the pilots and I think the employees of the airlines are going to need to regain, as well. So whether it’s training, whether it’s time, there will be a pretty long induction phase here.”

Bastian also touched on travel demand in the interview.

Though Bastian said Delta has not seen a hit to demand on travel in their numbers, he expects China trade tensions and Beijing travel warnings for visiting the U.S. could be causing “caution lights” for international travelers. He also said the strength of the U.S. dollar is making it more expensive to enter the country.

“We’re not as welcoming an environment for the international traveler as we could be,” Bastian said.


Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: ashley turner
Keywords: news, cnbc, companies, travel, ed, bastian, consumer, come, boeing, 737, think, international, delta, going, confidence, max, jets, ceo


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Elon Musk’s SpaceX appears to be the front-runner to win a valuable NASA moon mission

ULA, the joint venture of Boeing and Lockheed Martin, launched the first test flight of the Orion program on its Delta IV Heavy rocket in December 2014. Bridenstine pointed to that mission as an example of how NASA has leveraged commercial rockets successfully. But Delta IV Heavy comes at a steep price, at more than $350 million per launch. Additionally, ULA says Delta IV rockets require two to three years from order to launch. Whether or not the mission could launch on Delta IV Heavy is a “ques


ULA, the joint venture of Boeing and Lockheed Martin, launched the first test flight of the Orion program on its Delta IV Heavy rocket in December 2014. Bridenstine pointed to that mission as an example of how NASA has leveraged commercial rockets successfully. But Delta IV Heavy comes at a steep price, at more than $350 million per launch. Additionally, ULA says Delta IV rockets require two to three years from order to launch. Whether or not the mission could launch on Delta IV Heavy is a “ques
Elon Musk’s SpaceX appears to be the front-runner to win a valuable NASA moon mission Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-13  Authors: michael sheetz, nasa, kim shiflett, vcg, visual china group, getty images
Keywords: news, cnbc, companies, musks, moon, elon, frontrunner, appears, ula, valuable, win, rockets, launch, mission, spacex, bridenstine, iv, commercial, heavy, nasa, told, delta


Elon Musk's SpaceX appears to be the front-runner to win a valuable NASA moon mission

NASA administrator Jim Bridenstine told a Senate committee on Wednesday the agency will consider using commercial rockets for its lunar crew test flight, opening the door for SpaceX to win a pair of potentially lucrative launch contracts.

“I think we should launch around the moon in June of 2020, and I think it can be done. We need to consider as an agency all options to accomplish that objective,” Bridenstine said. “Some of those options would include launching the Orion crew capsule and the European service module on a commercial rocket.”

Instead of the space agency’s own SLS rocket, Bridenstine said NASA “could use two heavy-lift rockets” to send the two spacecrafts into orbit. Bridenstine also mentioned the “amazing capability that exists right now” in the U.S., and that means only two commercial possibilities: SpaceX and United Launch Alliance.

ULA, the joint venture of Boeing and Lockheed Martin, launched the first test flight of the Orion program on its Delta IV Heavy rocket in December 2014. Bridenstine pointed to that mission as an example of how NASA has leveraged commercial rockets successfully. But Delta IV Heavy comes at a steep price, at more than $350 million per launch. Additionally, ULA says Delta IV rockets require two to three years from order to launch. Whether or not the mission could launch on Delta IV Heavy is a “question of whether ULA has one ready,” space policy consultant Jim Muncy told CNBC.


Company: cnbc, Activity: cnbc, Date: 2019-03-13  Authors: michael sheetz, nasa, kim shiflett, vcg, visual china group, getty images
Keywords: news, cnbc, companies, musks, moon, elon, frontrunner, appears, ula, valuable, win, rockets, launch, mission, spacex, bridenstine, iv, commercial, heavy, nasa, told, delta


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We’re ‘highly confident’ in Macau’s gaming sector: Delta State Holdings

We’re ‘highly confident’ in Macau’s gaming sector: Delta State Holdings3 Hours AgoDavid Bonnet of Delta State Holdings says he is very bullish on the gaming sector in Macau in part because of increased connectivity and integration between cities in the Greater Bay Area.


We’re ‘highly confident’ in Macau’s gaming sector: Delta State Holdings3 Hours AgoDavid Bonnet of Delta State Holdings says he is very bullish on the gaming sector in Macau in part because of increased connectivity and integration between cities in the Greater Bay Area.
We’re ‘highly confident’ in Macau’s gaming sector: Delta State Holdings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-21
Keywords: news, cnbc, companies, state, macau, holdings, integration, macaus, confident, delta, highly, hours, gaming, sector, holdings3, increased


We're 'highly confident' in Macau's gaming sector: Delta State Holdings

We’re ‘highly confident’ in Macau’s gaming sector: Delta State Holdings

3 Hours Ago

David Bonnet of Delta State Holdings says he is very bullish on the gaming sector in Macau in part because of increased connectivity and integration between cities in the Greater Bay Area.


Company: cnbc, Activity: cnbc, Date: 2019-02-21
Keywords: news, cnbc, companies, state, macau, holdings, integration, macaus, confident, delta, highly, hours, gaming, sector, holdings3, increased


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We’re ‘highly confident’ in Macau’s gaming sector: Delta State Holdings

We’re ‘highly confident’ in Macau’s gaming sector: Delta State Holdings3:58 AM ET Thu, 21 Feb 2019David Bonnet of Delta State Holdings says he is very bullish on the gaming sector in Macau in part because of increased connectivity and integration between cities in the Greater Bay Area.


We’re ‘highly confident’ in Macau’s gaming sector: Delta State Holdings3:58 AM ET Thu, 21 Feb 2019David Bonnet of Delta State Holdings says he is very bullish on the gaming sector in Macau in part because of increased connectivity and integration between cities in the Greater Bay Area.
We’re ‘highly confident’ in Macau’s gaming sector: Delta State Holdings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-21
Keywords: news, cnbc, companies, increased, delta, integration, macau, highly, confident, sector, holdings, holdings358, macaus, gaming, state


We're 'highly confident' in Macau's gaming sector: Delta State Holdings

We’re ‘highly confident’ in Macau’s gaming sector: Delta State Holdings

3:58 AM ET Thu, 21 Feb 2019

David Bonnet of Delta State Holdings says he is very bullish on the gaming sector in Macau in part because of increased connectivity and integration between cities in the Greater Bay Area.


Company: cnbc, Activity: cnbc, Date: 2019-02-21
Keywords: news, cnbc, companies, increased, delta, integration, macau, highly, confident, sector, holdings, holdings358, macaus, gaming, state


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Government shutdown postpones debut of Delta’s brand-new A220 jets, aviation geeks groan

Delta Air Lines planned to debut its long-awaited Airbus A220 jets, planes that boast bigger windows, wider seats and aisles and brand-new entertainment systems, on Jan. 31. “Delta has made the decision to postpone the service debut of the Airbus A220 due to delays in certification processes that are required by the U.S. Federal Aviation Administration,” Delta said. “No customer impact is expected as a result of this equipment change and no flights will be canceled because of A220 certification.


Delta Air Lines planned to debut its long-awaited Airbus A220 jets, planes that boast bigger windows, wider seats and aisles and brand-new entertainment systems, on Jan. 31. “Delta has made the decision to postpone the service debut of the Airbus A220 due to delays in certification processes that are required by the U.S. Federal Aviation Administration,” Delta said. “No customer impact is expected as a result of this equipment change and no flights will be canceled because of A220 certification.
Government shutdown postpones debut of Delta’s brand-new A220 jets, aviation geeks groan Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-25  Authors: leslie josephs, source
Keywords: news, cnbc, companies, boeing, postpones, laguardia, planes, aviation, jets, deltas, geeks, seats, plane, shutdown, flights, brandnew, debut, groan, delta, planned, a220


Government shutdown postpones debut of Delta's brand-new A220 jets, aviation geeks groan

The partial government shutdown has delayed the aviation event of the season.

Delta Air Lines planned to debut its long-awaited Airbus A220 jets, planes that boast bigger windows, wider seats and aisles and brand-new entertainment systems, on Jan. 31. The shutdown, however, prevented the airline from getting the federal approvals it needed to start flying the planes at the end of the month as planned, the airline said on Friday.

“Delta has made the decision to postpone the service debut of the Airbus A220 due to delays in certification processes that are required by the U.S. Federal Aviation Administration,” Delta said. “No customer impact is expected as a result of this equipment change and no flights will be canceled because of A220 certification. The flights will be operated by other aircraft and changes are expected to be fully visible in schedules on Saturday.”

Aviation geeks across social media let out a collective groan.

“It’s very disappointing,” said Eric Goldmann, a 40-year-old health-care technology salesman based in Delta’s hometown of Atlanta. “This was a little notch on my belt to be on this aircraft we’re going to be flying for the next 25 years and I thought it would be fun.”

President Donald Trump and lawmakers on Friday reached a deal to fund the government for at least three weeks, ending the longest government funding lapse on record, but that didn’t make much difference to aviation enthusiasts who had paid for tickets to be on the inaugural A220 flights from LaGuardia Airport because Delta had already postponed them.

The single-aisle jet may look to some travelers like just any other plane, but its manufacturer, Airbus, and Delta and other operators have touted the new aircraft as state-of-the-art fuel saving machines that also provide more passenger comforts. Coach-class seats on the planes measure 18.6 inches, the widest in Delta’s coach-class cabins, and a tenth of an inch wider than the main cabin seats on its recently overhauled Boeing 777 widebody jets.

Goldmann said he bought tickets using frequent flyer miles for two different flights on Jan. 31 that were scheduled to use the A220 just to be sure he’d secure a seat. Delta is expected to start scheduling the A220 starting Feb. 7, but Goldmann, who has taken Delta’s first A321 flights and one of its last Boeing 747 trips, said he can’t go because of planned work travel.

A Delta spokesman said the airline would work with passengers who bought seats on the A220 flights on a “case by case” basis.

“Ugh! My son is going to be crushed,” tweeted Nino Benvenuti, a 45-year-old informational technology consultant based in Cincinnati.

Benvenuti told CNBC he planned to bring his 11-year-old, a budding aviation enthusiast, to New York and fly on the 6 a.m. A220 Delta flight from LaGuardia to Boston, hang out at the Boston airport and return, paying around $800 and spending some of his frequent flyer miles on the seats.

“It was: Dad: ‘please, please, please can we do this?,'” said Benvenuti, who added that on Friday afternoon his son didn’t know the debut was postponed because he was still at school. He will try to take him when the inaugural flights are rescheduled.

Groups of aviation enthusiasts fly hundreds of miles around the country for inaugural flights, as airlines revamp their aging fleets with brand-new jets or retire old favorites like the Boeing 747. That’s the case even for the new-to-the-skies jets that are just bigger model of a plane that’s already flying.

For example, no fewer than 10 so-called AvGeeks met up at Newark earlier this month for the first official United Airlines flight to Los Angeles on the Boeing 787-10, handing out buttons featuring a drawing of the plane to mark the occasion.

Delta first ordered the then-called CSeries jets from Canadian manufacturer Bombardier in April 2016 but they were caught up in a trade dispute for months after Boeing alleged Bombardier sold the planes to Delta below cost. Boeing lost its case in January of last year.

European plane-maker Airbus took over the program in the middle of 2018 and plans to produce the planes in Mobile, Alabama, where it produces other narrow-body aircraft.

As aviation enthusiasts, these individuals are aware that airlines routinely, albeit not for government shutdowns, have to swap aircraft for mechanical problems.

Barry Goldberg, a software engineer, said he booked a ticket from Boston to LaGuardia on the A220 on Jan. 31 “for fun.”

“When the [Boeing] 787 came out I flew from EWR to IAH to ORD to LGA just to see the new plane,” he said of a trip, using airport codes for Newark, Houston, Chicago’s O’Hare and LaGuardia in New York. “The A220 schedule worked out nice for me this time but things happen.”


Company: cnbc, Activity: cnbc, Date: 2019-01-25  Authors: leslie josephs, source
Keywords: news, cnbc, companies, boeing, postpones, laguardia, planes, aviation, jets, deltas, geeks, seats, plane, shutdown, flights, brandnew, debut, groan, delta, planned, a220


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Transports see best January in six years, but traders hedge for the worst

Transports pick up steam in best January in six years 3:14 PM ET Wed, 16 Jan 2019 | 03:31Transports are delivering solid gains so far this month. The IYT transportation ETF is tracking for its best January since 2013 with stocks like Avis Budget, Union Pacific and JetBlue moving higher. However, options traders are hedging for the worst. A drop of at least 30 percent in the railroad stocks would take the S&P industry down to levels not seen since the beginning of 2017. Disclosure: Erin Gibbs doe


Transports pick up steam in best January in six years 3:14 PM ET Wed, 16 Jan 2019 | 03:31Transports are delivering solid gains so far this month. The IYT transportation ETF is tracking for its best January since 2013 with stocks like Avis Budget, Union Pacific and JetBlue moving higher. However, options traders are hedging for the worst. A drop of at least 30 percent in the railroad stocks would take the S&P industry down to levels not seen since the beginning of 2017. Disclosure: Erin Gibbs doe
Transports see best January in six years, but traders hedge for the worst Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-17  Authors: keris lahiff, philippe huguen, afp, getty images, martyn goddard, ander gillenea, lucas jackson, kcna, thomas barwick getty images, source
Keywords: news, cnbc, companies, worst, names, stocks, traders, thats, delta, logistics, transports, airlines, gibbs, best, hedge, sp, pick, railroad


Transports see best January in six years, but traders hedge for the worst

Transports pick up steam in best January in six years 3:14 PM ET Wed, 16 Jan 2019 | 03:31

Transports are delivering solid gains so far this month.

The IYT transportation ETF is tracking for its best January since 2013 with stocks like Avis Budget, Union Pacific and JetBlue moving higher.

However, options traders are hedging for the worst.

Stacey Gilbert, head of derivative strategy at Susquehanna, said that while she does not anticipate a recession, activity in the options market suggests investors are protecting against any possible economic downturn this year.

“Your railroad stocks certainly could have 30 to 40 percent downside if there were a recession – we’re not seeing signs that’s what is coming,” Gilbert told CNBC’s “Trading Nation” on Wednesday. “Trucking and logistics names probably you could be looking at 20 percent downside — again, that’s not what’s there but we think that’s what some of the flow has been to protect against.”

A drop of at least 30 percent in the railroad stocks would take the S&P industry down to levels not seen since the beginning of 2017. A 20 percent decline in the air freight and logistics industry would bring it to late-2013 lows.

For the long term, Gilbert said three names have sparked Susquehanna’s interest – freight company C.H. Robinson, railroad stock Union Pacific, and airline Delta. Susquehanna analysts have buy ratings on all three of those stocks.

“We definitely think that there are names in transports. You can’t own the basket, you’ve got to pick your favorites and we do have some that are out there,” said Gilbert.

Erin Gibbs, portfolio manager at S&P Global, agrees that investors should not take the group as a whole, but rather pick out the outperformers.

“When you drill into it, the real highlight and what’s driving a lot of this is the airlines so stocks like your Delta, Alaska Airlines,” Gibbs said Wednesday on “Trading Nation.”

The gap in earnings growth estimates for the group will further split their performances through the rest of the year, Gibbs said. Freight and logistics companies, for example, are expected to post 2019 earnings growth of 3.4 percent, the smallest increase of the group.

“Airlines have the growth of about twice the group as a whole and that’s really your strong suit so I’d say focus on your airlines,” added Gibbs.

United Continental and Delta both posted better-than-expected earnings earlier this week for their fourth quarters. United also gave upbeat guidance, though Delta’s profit forecasts fell short.

Disclosure: Erin Gibbs does not personally own shares of Delta and Alaska Airlines but S&P Global does.


Company: cnbc, Activity: cnbc, Date: 2019-01-17  Authors: keris lahiff, philippe huguen, afp, getty images, martyn goddard, ander gillenea, lucas jackson, kcna, thomas barwick getty images, source
Keywords: news, cnbc, companies, worst, names, stocks, traders, thats, delta, logistics, transports, airlines, gibbs, best, hedge, sp, pick, railroad


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Delta CEO: Government shutdown will cost the airline $25 million this month

The partial U.S. government shutdown will cost Delta Air Lines about $25 million in revenue this month as fewer government contractors and employees are traveling, the airline’s, CEO Ed Bastian, said Tuesday. The shutdown is the longest ever and has left some 800,000 government employees furloughed or working without pay. Delta, which reported fourth-quarter earnings earlier Tuesday, said it expects the shutdown, along with currency headwinds and a later Easter this year, to dent its revenue in


The partial U.S. government shutdown will cost Delta Air Lines about $25 million in revenue this month as fewer government contractors and employees are traveling, the airline’s, CEO Ed Bastian, said Tuesday. The shutdown is the longest ever and has left some 800,000 government employees furloughed or working without pay. Delta, which reported fourth-quarter earnings earlier Tuesday, said it expects the shutdown, along with currency headwinds and a later Easter this year, to dent its revenue in
Delta CEO: Government shutdown will cost the airline $25 million this month Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-15  Authors: leslie josephs, phil lebeau, al seib, los angeles times, getty images
Keywords: news, cnbc, companies, cost, shutdown, revenue, earlier, working, employees, airline, month, million, 25, unit, months, delta, yearearlier, ceo, tuesdaythe


Delta CEO: Government shutdown will cost the airline $25 million this month

The partial U.S. government shutdown will cost Delta Air Lines about $25 million in revenue this month as fewer government contractors and employees are traveling, the airline’s, CEO Ed Bastian, said Tuesday.

The shutdown is the longest ever and has left some 800,000 government employees furloughed or working without pay.

Delta, which reported fourth-quarter earnings earlier Tuesday, said it expects the shutdown, along with currency headwinds and a later Easter this year, to dent its revenue in the first three months of the year. Unit revenue, which measures its revenue for every seat it flies a mile, will be flat to up 2 percent in the three months ending March 31, compared with the year-earlier period. Delta posted $10.74 billion in revenue for the last three months of the year, up 5 percent from a year earlier.


Company: cnbc, Activity: cnbc, Date: 2019-01-15  Authors: leslie josephs, phil lebeau, al seib, los angeles times, getty images
Keywords: news, cnbc, companies, cost, shutdown, revenue, earlier, working, employees, airline, month, million, 25, unit, months, delta, yearearlier, ceo, tuesdaythe


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Buyer beware: Airline stocks are a ‘value trap,’ warns expert

Low Delta share prices may be value trap, says Boris Schlossberg 2:57 PM ET Mon, 14 Jan 2019 | 02:28Airline stocks can’t seem to catch a break. Delta reported fourth-quarter earnings on Tuesday that topped analyst estimates, but the stock dropped as much as 2 percent in premarket trading. American Airlines and Delta Air Lines both finished last week in the red after each carrier cut its guidance. Like Schlossberg, Oppenheimer’s Ari Wald wouldn’t be buying airline stocks here. The stock finished


Low Delta share prices may be value trap, says Boris Schlossberg 2:57 PM ET Mon, 14 Jan 2019 | 02:28Airline stocks can’t seem to catch a break. Delta reported fourth-quarter earnings on Tuesday that topped analyst estimates, but the stock dropped as much as 2 percent in premarket trading. American Airlines and Delta Air Lines both finished last week in the red after each carrier cut its guidance. Like Schlossberg, Oppenheimer’s Ari Wald wouldn’t be buying airline stocks here. The stock finished
Buyer beware: Airline stocks are a ‘value trap,’ warns expert Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: pippa stevens, justin sullivan, getty images, scott mlyn, michael nagle, bloomberg, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, trap, shutdown, value, stock, airline, buyer, airlines, stocks, schlossberg, going, delta, beware, warns, expert


Buyer beware: Airline stocks are a 'value trap,' warns expert

Low Delta share prices may be value trap, says Boris Schlossberg 2:57 PM ET Mon, 14 Jan 2019 | 02:28

Airline stocks can’t seem to catch a break. Delta reported fourth-quarter earnings on Tuesday that topped analyst estimates, but the stock dropped as much as 2 percent in premarket trading.

The NYSE Arca Airline Index, which tracks U.S. and international carriers, lagged the broader market in 2018 — dropping nearly 21 percent compared with the S&P’s decline of more than 6 percent — and some of the biggest airlines are warning that 2019 might bring more bad news.

American Airlines and Delta Air Lines both finished last week in the red after each carrier cut its guidance. This comes after American Airlines fell just more than 20 percent in December, its worst month on record. It’s plummeted more than 46 percent from its January 2018 high of $59.08.

Some investors may view the move lower as an opportunity for bargain hunting, but BK Asset Management’s Boris Schlossberg believes we haven’t yet seen the worst.

“It may be a value trap because as far as the market is concerned, the only thing they really care about is revenue per available seat mile, and those numbers have been going down,” he said Monday on CNBC’s “Trading Nation,” adding that “fares were down 2.6 percent in December.”

He believes that despite a drop in fuel costs, airlines’ inability to control pricing as well as a potential peak in demand will continue to pressure margins going forward.

He also noted that the partial government shutdown, which reached 25 days on Tuesday and is the longest shutdown on record, isn’t good news for airlines.

“Of course the shutdown is really not helping the airline industry … just the delays themselves are going to have a massive, massive ricochet effect through the whole industry,” he said. On Tuesday, Delta CEO Ed Bastian said the shutdown will cost the airline about $25 million in revenue this month as fewer government contractors and employees are traveling.

Like Schlossberg, Oppenheimer’s Ari Wald wouldn’t be buying airline stocks here. After examining the charts for Delta and United specifically, he isn’t convinced that either one is about to turn a corner or break out to the upside.

That said, he is watching one key level for DAL.

“Big support is $45. This is the multiyear low. We’ve bounced right from there. Positive above there, use that as your protective stop,” he said.

Shares of Delta slid nearly 2 percent Monday after Bank of America cut the name to a neutral rating based on a lack of upcoming positive catalysts. The firm also lowered its price target to $51.

The stock finished the day at $47.75, so it would need to fall another 5.7 percent to reach Wald’s $45 level.

— CNBC’s Leslie Josephs contributed reporting.


Company: cnbc, Activity: cnbc, Date: 2019-01-14  Authors: pippa stevens, justin sullivan, getty images, scott mlyn, michael nagle, bloomberg, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, trap, shutdown, value, stock, airline, buyer, airlines, stocks, schlossberg, going, delta, beware, warns, expert


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