Delta Air Lines, Inc (DAL)

[Mygolfballs]

Bailouts go bad for stocks

Bear Sterns Lehman Bros

Stocks are bankrupt



Grim

[Mygolfballs]

Empty planes for awhile

Grim

[Another Casualty]

And I'm out. Total gains for the day 14.19%

[Another Casualty]

Loaded huge at 19s. This drop is unwarranted easy profit.

[bb72mo]

Wow. $20

[Xl175]

Bet on a rebound if you believe in Santa Claus, Trump talks a big game about backing the airlines, but I don’t think congress is going to do a giveaway to airline investors. After much fighting, aid will eventually go to the airlines when they are out of cash, I predict that most of the aid will go to the workers not to support DAL s share price. The cash burn rate is crazy.

[looking 4 a win]

Rebound already?

[getmoreshares]

agree- the bottom is not in-- we will need to wait until the virus effect is complete

[Xl175]

A Federal bailout package will be delivered to the airlines in the coming months, most likely it will be low interest debtor-in-possession financing. Is our bubbly Warren Buffett really going to ride these airlines into the ground? Look for a form 4, the moment it hits DAL will drop another 50%.

[looking 4 a win]

Nice

[mikeski74]

I agree 100% I think the markets pulls back big Monday. I can’t see anyway this goes up without a bailout and that will take a while to get approved. Will see what happens but for now I’m shorting this stock and taking my chances

[looking 4 a win]

Ah, was thinking the same thing. I got a boat load I wanna put in but this rebound seems fake.

[mikeski74]

With them grounding planes and now the UK and Ireland being shut out there’s no way it goes up Monday imo the only thing that could save $DAL is a bailout and I don’t think that will happen for a few more days. Looking at puts for Monday and Tuesday short term downtrend coming imo

[looking 4 a win]

Dead cat bounce?

[getmoreshares]

https://www.newsmax.com/us/virus-outbreak-airlines/2020/03/10/id/957712/?ns_mail_uid=4103d173-f910-402f-841e-557283aba3e3&ns_mail_job=DM96652_03102020&s=acs&dkt_nbr=010502relbo8

Delta, the world's biggest airline by revenue, said net bookings declined 25% to 30% in the past two weeks and could get worse. The said it will cut international flights by 20% to 25% and reduce U.S. flying by 10% to 15%, roughly matching cuts previously announced by United Airlines. CEO Ed Bastian said the airline is “prepared to do more” if the outbreak grows.


Delta is cutting spending, including putting a freeze on hiring, offering voluntary unpaid leave, delaying voluntary pension contributions and suspending share buybacks.

[Greenstreamfan]

Buy good companies when bad happens.

[JohnCM]

Should You Buy or Sell Airline Stocks Right Now?

Coronavirus has sent airline shares tumbling. Is now a good time to buy in?

By Lou Whiteman
(TMFeldoubleu)
Mar 8, 2020 at 8:00AM

Airline shares have been decimated by the COVID-19 coronavirus sell-off, with some stocks losing nearly half of their value in the last two weeks alone. And not without reason.

As the coronavirus has spread globally, travel demand has plummeted, with United Airlines Holdings (NASDAQ:UAL) saying it saw near-term demand to all of Asia fall by more than 75% when the virus was largely contained to China. The airlines have canceled flights to parts of the world that have been heavily affected, and some, including United and JetBlue Airways (NASDAQ:JBLU), have announced plans to scale back service across their entire networks until demand resumes.

The airline sector has long been highly cyclical, and the downturns have usually been painful for investors. Storied names like Eastern Airlines, TWA, Braniff, and PanAm disappeared from the skies during past downturns.

Nothing is certain about the ultimate effects coronavirus will have on the economy at large, and airlines in particular, but it does appear the blow will be substantial. It's a scary time to be holding airline shares. But for those with a long time horizon, and the stomach to handle turbulence, here's why it's a great time to buy.

insert-text-here

Wall Street tends to be focused on quarterly results, and there is little doubt the coronavirus will affect airline financials at least for the first half of 2020. That could extend into the second half of the year as well. During a TV appearance, Southwest Airlines (NYSE:LUV) CEO Gary Kelly said the drop in demand is reminiscent of what happened after the attacks on Sept. 11, 2001.

In years past that might have been enough to permanently ground a U.S. airline, and based on the stock reactions in recent weeks, memories of past crises are weighing heavily on investors this time around. However, the industry has changed dramatically.

A period of restructuring and consolidation in the early 2000s reduced the number of airlines competing for business and fortified the balance sheets of the survivors. Today Delta Air Lines (NYSE:DAL), American Airlines Group (NASDAQ:AAL), United, and Southwest control about 80% of the U.S. market, giving them unprecedented pricing power.

The coronavirus could cause changes in behavior, for example, boosting teleconferencing over business travel. There is also the risk the virus-related slowdown could lead to a U.S. recession that could soften corporate travel demand. But there is nothing to suggest there will not be an eventual recovery. If past virus outbreaks are a guide, tourism and leisure travel will return first, possibly as soon as this summer, because it is more easily stimulated by fare sales.

Prior to coronavirus, the International Air Transport Association had projected that global air traffic will double over the next two decades. Near-term earnings are likely to tumble because of the outbreak, but in all likelihood the long-term growth forecast will not be altered. And fortunately for investors, all major airlines have the balance sheets to weather a near-term disruption.

Airlines are healthier than they have ever been

In past downturns airlines failed because the industry has massive fixed costs tied to airplane purchases, and with so many competitors chasing a limited number of fliers, pricing discipline went out the window. Consolidation has helped on the pricing side, and the post-9/11 bankruptcies of Delta, American, and United have helped bring costs under control as well.

American's share price fall has been the most dramatic among major airlines because the company has $24 billion in long-term debt, the most in the industry, and is therefore seen as the most vulnerable to a prolonged downturn. The company went into 2020 hoping to use profits to pay down that debt total by as much as $4 billion over the next two years, and coronavirus has certainly cast doubt on that plan.

But American and its peers are far from a cash crunch. The company successfully raised more than $1 billion earlier in the year and has significant unencumbered assets to borrow against if it needs more cash in a pinch. At year's end, it also had about $7.1 billion in total available liquidity under its borrowing agreements.

Spirit Airlines (NYSE:SAVE) has fallen nearly as much as American, which is perhaps unsurprising given that the company's 31% debt to asset ratio is the only U.S. airline approaching American's 40% figure. The company's shares have also been beaten down because it was expected to be one of the fastest-growing airlines in 2020, and its valuation prior to the outbreak reflected an outlook for growth that now seems unlikely to materialize. But Spirit, like American, is not cash constrained, with more than $1 billion in cash at year's end.

The industry also has the support of Washington, with the White House reportedly willing to consider deferring taxes to help stem the economic fallout of the slowdown. The bottom line is that every publicly traded U.S. airline has considerable runway ahead of it before the coronavirus becomes a severe financial crisis.

Warren Buffett, who famously said investors should be greedy when others are fearful, manages a basket of airline stocks inside Berkshire Hathaway. We won't know for sure what Buffett was buying and selling as markets turned south until quarter-end disclosures, but we do know Berkshire added to its massive Delta stake in late February.

Buy for the long haul

Investors looking at the airline sector need to understand this could get worse before it gets better. The global industry has lost more than $40 billion in combined market capitalization in February alone, about one-fifth of its total, according to British investment firm AJ Bell. That sort of drop is driven by emotion, and not financials, and until the full extent of the coronavirus is known it could be hard for airline stocks to find a bottom.

That said, the long-term outlook for the industry is not 20% worse today than it was in early January. Investors willing to buy in today and ride through the headwinds have the opportunity to buy quality operators like Delta at six times earnings, less than half the multiple investors were paying for the stock a little more than a year ago.

Be careful bargain hunting: Companies like American and Spirit have fallen the most because their upside is delayed more than most due to coronavirus and could be facing multi-year recoveries. But for those who can ignore the headlines, keep a focus on the long term, and be selective about what they buy, it is an intriguing time to buy airline stocks.

[JohnCM]

GREEN?!?!

[BottomBounce]

$DAL CDC expands global travel alerts; coronavirus impact

[deet49]

CUBA Certified Claim Holder Delta Air Lines Owns 49% Of Company Virgin Atlantic Expanding Services From UK To Cuba;
February 13, 2020 https://www.cubatrade.org/blog/2020/2/13/2itrp1xyu91pqpzu9n8k4g6su2rdsh

DAL AAL CCL

[Greenstreamfan]

737 Max grounding is a boon for Delta. Big year coming.

[Greenstreamfan]

This one is out of gas literally
https://www.nbcnews.com/news/us-news/los-angeles-teachers-sue-delta-after-jet-fuel-dump-over-n1118261

[Greenstreamfan]

FAA posts video mentioning Delta's use of Performance Based Navigation
https://www.faa.gov/tv/?mediaId=1885

[realfast95]

Chart looking good

[Greenstreamfan]

Delta Boston growing transatlantic business for big profit

https://www.forbes.com/sites/tedreed/2019/11/12/new-delta-hub-means-fast-growing-boston-logan-is-set-to-pass-miami-in-trans-atlantic-traffic/#127f8c7d1f4f

[Greenstreamfan]

Delta still ignoring flight attendants now unionization back

https://www.aviationpros.com/airlines/news/21113868/nations-largest-flight-attendants-union-makes-another-run-at-delta

[Greenstreamfan]

Delta sued for headaches rashes caused by uniforms

https://www.usatoday.com/story/travel/news/2019/05/24/delta-flight-attendants-lawsuit-says-uniforms-cause-rashes-headaches/1221631001/

[Greenstreamfan]

Delta sued for headaches rashes caused by uniforms

https://www.usatoday.com/story/travel/news/2019/05/24/delta-flight-attendants-lawsuit-says-uniforms-cause-rashes-headaches/1221631001/

[Greenstreamfan]

Delta insulated from 737 Max fails never ordered

https://www.cnet.com/news/boeing-737-max-review-finds-faa-and-boeing-failures/

[Greenstreamfan]

Rolls Royce's engine continues to be an issue.

https://www.reuters.com/article/us-rolls-royce-hldg-trent-1000/rolls-royce-hit-by-further-setback-to-fixing-boeing-787-engines-idUSKBN1W50MP

[Greenstreamfan]

Delta's A220 fleet now under power restrictions

https://www.inc.com/chris-matyszczyk/delta-air-lines-has-a-significant-problem-what-should-it-tell-passengers.html

[ITMS]

Here’s The Gann Trade Level For Delta Air Lines $DAL

Delta Air Lines Inc (NYSE:DAL) was crushed yesterday after it raised its FY19 unit cost outlook to +2% from +1%. The shares plunged lower by nearly 5.0% on the news and are currently trading around $52.97 a share. Traders should note that DAL stock is now below its important 200-day moving average. This is viewed as a negative technical position on the charts and often signals lower prices will follow. The stock peaked on July 24, 2019 at $63.43 a share. So according to my Gann calculations this tells me that major support for the stock will be around the $47.50 area. At that time, I will look to initiate a long side position in the stock. Delta Air lines reports earnings on October 10, 2019 before the open.




Nick Santiago
InTheMoneyStocks

[Finditdotcom]

Delta Airlines Faces Lawsuit From Man Attacked By Fellow Passenger’s Emotional Support Dog

https://www.findit.com/business-news/news/1810120/delta-airlines-faces-lawsuit-from-man-attacked-by-fellow-passengers

[RyGuy]

Thanks Chevy

[56Chevy]

Marker:
Delta Air Lines, Inc (DAL)
$55.64 up 3.46 (6.63%)
Volume: 9,157,209

[swingingRichard]

should have loaded the boat when this one was going through bankruptcy.

[whytestocks]

News: $DAL There's More Than Just an Avalanche of Costs Crushing Early Season Skiers

  An Avalanche of costs Crush early Skiers With the federal government shutdown in full swing, I thought that Friday would be a great time to check out the Summit County and Vail ski crowds.  The MLK weekend, one of the three peak periods of the ski season, crowd was greeted with...

Got this from https://marketwirenews.com/news-releases/there-s-more-than-just-an-avalanche-of-costs-crushing-early-season-skiers-7522338.html

[rockland2u]

whats the new news for delta? earnings? predictions? any info coming out?

[ITMS]

Delta Air Lines $DAL Hits Turbulence After Lower Quarterly Outlook, Watch This Trade Level

This morning, Delta Air Lines Inc (NYSE:DAL) warned fourth-quarter revenue would be slightly below its prior forecast. The stock is trading lower by more than 8.0 percent to $45.80 a share. The stock is now trading below its important 200-week moving average. This pattern usually indicates further weakness ahead. Traders and investors should now watch the $43.50 area as the next major support level. This area is where the stock was defended in April 2017 and will likely be defended again when retested. Please remember, Delta is scheduled to report earnings on January 10th 2019 before the opening bell.




Nick Santiago
InTheMoneyStocks

[realfast95]

Director Mattson has been buying with his own money, then the CEO dumps 60k worth of options on 12/28.

[bsdvs23]

$DAL: Broke one level of resistance; now two more levels until new 52-week highs. Resistance areas: 59.60 and 60.09.

Airlines should be on everyone's radar, if they haven't already. Record lows for Oil, Record passengers for Thanksgiving, and Christmas is upon us. Airline earnings looking great.

[bsdvs23]

$DAL: Very strong consumer demand flying; weather cooperative. Oil prices helping significantly. Made some solid day trades on $DAL Wednesday and Friday morning. Ready for the technical's to continue performing.

Keep an eye on the airline sector as a whole. Markets are heavily anticipating holiday sale numbers by retails and consumer traffic flying.

[Over the Lake]

Showed up at Syracuse airport for a connecting flight to JFK to Aruba. Our Delta plane was held up for a “maintenance” issue as we were ready to taxi, caused over 2 1/2 hour delay (May have been canceled). Now we have to try again tomorrow (lol). Others missed connecting flights to their cruise, Las Vegas, CA., one lady to Africa. This cost many people a lot of money and huge inconvenience/losses. Needless to say we’re not impressed with your airline - Maybe it’s not your oil refinery that is the issue! No way to recoup our day, and shortens the vacation with no recourse, but it was nice to hear that your staff was so apologetic... my right bird is in the air.

[ITMS]

This Airline Stock Is Now On My Radar, Watch This Trade Level

Recently, many of the leading airline stocks have been pulling back. Higher oil prices have certainly hurt the airline stocks since September 21, 2018 when they all made minor tops. Today, crude remains near its 52-week high and most airlines remain under selling pressure.

One particular airline stock that I'm now watching closely is Delta Air Lines Inc (NYSE:DAL). This stock traded as high as $60.23 on September 21, 2018. Since that high pivot in the stock, the share have fallen below their 50 and 200 day moving averages. This is a sign of weakness and usually indicates lower prices ahead. Today, DAL stock is trading lower by $2.34 to $54.25 a share. The next key support area that I see for the stock would be around the $51.00 level. This is where the stock was defended in July and would likely serve as solid support again when retested. Swing traders should keep this level on the radar for along side trade.





Nicholas Santiago
InTheMoneyStocks

[Enterprising Investor]

Delta Seeks Partner for Its Jet-Fuel Refinery (9/21/18)

https://www.wsj.com/articles/delta-seeks-partner-for-its-jet-fuel-refinery-1537534800

[Enterprising Investor]

Delta Air Lines seeks buyers for a stake in its refining subsidiary (9/04/18)

NEW YORK (Reuters) - Delta Air Lines has hired two investment banks to offer a stake in its Monroe Energy refining subsidiary, signaling it wants a partner to shoulder the risk of running an energy business.

The Atlanta-based airline acquired the 185,000-barrels-per-day refinery in 2012 for $150 million in a bet that it could lower its cost of jet fuel, among the highest expenses for any airline. The refinery also makes gasoline and diesel for profit.

The U.S refining industry has been consolidating into larger players that can use scale to lower their cost of buying raw materials and paying for regular overhauls. In the U.S. East Coast, four refineries closed in the past decade due to the rising costs of acquiring crude.

Ed Hirs, a professor of energy economics at the University of Houston, said the attempt to recruit a joint venture partner is no sure thing.

“It was a boneheaded decision then, and they are still paying for it. It is going to be tough to sell a refinery that has faced closure several times due to bad economics,” he said.

Delta defended its effort to bring in a partner.

It is planning to invest $120 million in Monroe Energy’s Trainer, Pennsylvania, plant next quarter on maintenance and improvements. That overhaul will curb production for two months.

“After several years of ownership it is natural for Delta to seek other opportunities that might exist to optimize the benefits to Delta and maximize the value of other aspects of the refinery for a potential joint venture partner,” Paul Jacobson, Delta’s finance chief, said in a statement.

Delta has said the refinery’s purchase was more than a way to make a profit from the subsidiary, arguing that if the facility had closed it would have sent jet fuel prices higher across the Northeast, hurting the airline’s results.

But more recently Delta has run the plant like a traditional refinery, choosing to make more of whatever refined product offered the highest margin.

The company has hired investment banks Barclays and Jefferies to manage the sale process. The banks have already begun talking with potential suitors, according to sources familiar with the matter. It was not immediately clear what valuation the company has put on the stake offered.

Delta has grappled with the best way to manage Monroe.

Last year, it hired a consultant to evaluate the impact on jet fuel prices of any sale or closure of the refinery. The company downplayed the evaluation’s significance at the time, calling it routine.
East Coast refiners got a lifeline from the Bakken shale boom in North Dakota earlier this decade. Production there outpaced pipeline capacity, forcing producers to offer steep discounts to East Coast refiners like Monroe.

However, the discounts have vanished in recent years as more pipeline capacity came online in the upper U.S. Midwest. That forced Monroe and other U.S. East Coast refineries once again to buy higher priced crudes for their plants, reverting back to the poor economics that hurt them a few years earlier.

Reporting by Jessica Resnick-Ault and Jarrett Rensaw in New York; Writing by Gary McWilliams; Editing by Leslie Adler

https://www.reuters.com/article/us-delta-air-m-a-refinery/delta-air-lines-seeks-buyers-for-a-stake-in-its-refining-subsidiary-idUSKCN1LM02U

[56Chevy]

Marker:
Delta Air Lines, Inc (DAL)
$60.15 up 2.02 (3.47%)
Volume: 4,506,968

[ITMS]

This Airline Is Flying Under The Radar

As you all know, energy prices have been on the rise. If we have learned anything from the past, when energy costs increase the airline stocks will usually come under selling pressure. Spot crude is now trading around $71.00 a barrel and expected to climb in the near term. There are numerous problems developing in the Middle East and this is certainly one catalyst for the strong oil prices. Then there is the OPEC production cuts which are also helping to keep energy prices elevated at this time.

One airline that has been weak since mid-January is Delta Air Lines Inc (NYSE:DAL). This airline actually owns an oil refinery and benefits when oil prices are high. Essentially, Delta Air Lines (NYSE:DAL) has protection against the risk of high crack spreads. A crack spread is a term used in the oil industry for the differential between the price of crude oil and petroleum products it makes like jet fuel.

Delta Airlines stock peaked on January 16th, 2018 at $60.79 a barrel. Today, DAL stock is trading at $52.40 a share. Traders should note that DAL stock is now below its important 50-day moving average. This chart formation puts the stock in a weak technical position in the near term. The next major support area for the stock will be around the $49.00 level. This is where the stock was defended in early February 2018. Generally, the institutional crowd will step in and defend the equity when it is retested.




Nicholas Santiago
InTheMoneyStocks

[56Chevy]

Marker:
Delta Air Lines, Inc (DAL)
$55.80 up 1.25 (2.29%)
Volume: 4,465,455

[ITMS]

This Trade Level Is Where Delta Air Lines Can Take Off

As you all know, most of the leading airline stocks have been coming under pressure recently. The leading airline stock in the industry group is Delta Air Lines Inc (NYSE:DAL). This stock topped out on January 16, 2018 at $60.79 a share. Since that high in the stock the shares have rolled over sharply. Today, DAL stock is trading lower by $1.48 to $52.37 a share. Traders now understand that the major market indexes are in correction mode, so it is prudent to look lower for major trade levels. The $48.50 area is a level that really stands out to me. This area was where the stock bottomed in November 2017. Often, when stocks retrace back to a major support level they will usually be defended by the institutional money. I will be looking to buy DAL stock around the 48.50 area.





Nicholas Santiago
InTheMoneyStocks