Latest news with #EdBastian
Yahoo
2 days ago
- Business
- Yahoo
Delta's Clever Fix for Jet Shortages and Tariffs
Delta (NYSE:DAL) is getting creative to dodge Europe's tariffs and tackle a jet-engine crunch by yanking engines off grounded A321neos in Europe and fitting them into older Airbus planes back home. Warning! GuruFocus has detected 4 Warning Sign with DAL. Since the new A321neos are stuck overseas awaiting seat approvals, Delta's been shipping their Pratt & Whitney engines back to the U.S. to swap into aging jets that need turbine work. Once Washington and Brussels hammer out a trade deal, Delta can sail those fresh Airbus jets into the U.S. tariff-free, avoiding extra costs on each delivery. With planes grounded and tariffs looming, this engine shuffle tackles two headaches at once: keeping older aircraft flying and sidestepping potentially steep import duties. CEO Ed Bastian says they'll keep moving engines around as needed, making sure Delta doesn't pay a cent more in tariffs while keeping its fleet humming. This article first appeared on GuruFocus.
Yahoo
2 days ago
- Business
- Yahoo
Delta's Clever Fix for Jet Shortages and Tariffs
Delta (NYSE:DAL) is getting creative to dodge Europe's tariffs and tackle a jet-engine crunch by yanking engines off grounded A321neos in Europe and fitting them into older Airbus planes back home. Warning! GuruFocus has detected 4 Warning Sign with DAL. Since the new A321neos are stuck overseas awaiting seat approvals, Delta's been shipping their Pratt & Whitney engines back to the U.S. to swap into aging jets that need turbine work. Once Washington and Brussels hammer out a trade deal, Delta can sail those fresh Airbus jets into the U.S. tariff-free, avoiding extra costs on each delivery. With planes grounded and tariffs looming, this engine shuffle tackles two headaches at once: keeping older aircraft flying and sidestepping potentially steep import duties. CEO Ed Bastian says they'll keep moving engines around as needed, making sure Delta doesn't pay a cent more in tariffs while keeping its fleet humming. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Airline ETFs Rally on Delta's Bullish Outlook
Delta Air Lines' DAL strong earnings have sparked a solid rally in the broader U.S. airline sector, which has recently struggled due to dampened consumer sentiment and trade policy uncertainty. U.S. Global Jets ETF JETS spiked 7.3% to the highest level since February, while Themes Airlines ETF AIRL jumped 7.9% on Thursday. Delta Air Lines reported earnings per share of $2.10, beating the Zacks Consensus Estimate of $2.04. However, it declined 11% from the year-ago quarter. Revenues moved down marginally year over year to $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion. The air carrier restored its 2025 guidance, which it had suspended after the first-quarter 2025 earnings report. DAL expects earnings of $5.25-$6.25 per share. The Zacks Consensus Estimate is pegged at earnings of $ Delta signaled strong momentum in the airline industry. It reported that bookings had stabilized, premium ticket revenues were up 5% year over year, and loyalty program revenues rose 8%, even as revenues from standard main cabin fares declined (read: Aviation Market to Soar Above Turbulence? ETFs to Consider).CEO Ed Bastian highlighted that 'consumer and corporate confidence' are improving, a key for sustained travel has reignited optimism across the aviation sector, with other airlines also soaring. United Airlines UAL rallied 14.3%, American Airlines AAL moved up 12.7%, Alaska Air ALK rose 9% and Southwest Airlines (LUV) gained 8%. Delta climbed 12% on the day. Falling oil prices are adding strength to the airline stocks and ETFs. Delta's fuel expenses dropped 11% year over year, with per-gallon costs down 14%, easing pressure on margins. U.S. Global Jets ETF provides exposure to the global airline industry, including airline operators and manufacturers from all over the world, by tracking the U.S. Global Jets Index. The product holds 49 securities with the highest concentration on the top four largest U.S. carriers, which account for nearly an 11% share each. American firms account for 75.5% of the assets, followed by Canada, France and Spain.U.S. Global Jets ETF has gathered $885.5 million in its asset base, while seeing a heavy trading volume of nearly 4 million shares a day. It charges investors 60 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy), with a High risk outlook. Themes Airlines ETF offers exposure to the largest 29 airline companies by market capitalization by tracking the Solactive Airlines Index. American firms make up the largest share in the basket at 42%, followed by the U.K. firms with a 12.8% share. Themes Airlines ETF has managed assets worth $1 million and charges 35 bps in annual fees. It trades in an average daily volume of under 500 shares. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report U.S. Global Jets ETF (JETS): ETF Research Reports Themes Airlines ETF (AIRL): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Delta Says Domestic Main Cabin Seats Will Soon Be Harder to Score
The airline industry is on track to cut its main-cabin domestic capacity by about 1% by September, Delta President Glen Hauenstein said, amid weak demand for those tickets. Main cabin revenue was down about 5% in the latest quarter, while premium seat revenue was up a similar amount, Delta CEO Ed Bastian said. Delta Air Lines stock shot up after its results beat analyst expectations, and shares of other airlines were also fewer main cabin airplane seats by the end of the summer, Delta said. With limited demand for lower-priced fares, carriers are poised to reduce domestic main-cabin capacity by about 1% by September, Delta Air Lines (DAL) President Glen Hauenstein said Thursday. Delta is cutting capacity by eliminating unpopular trips, such as those at odd hours or on Tuesdays and Wednesdays, he said on a conference call. 'I've been in this business quite a long time, and I've really never seen that amount of capacity come out in a non-recessionary environment,' Hauenstein said of the industry-wide contraction in main cabin capacity he expects, according to a transcript made available by AlphaSense. 'And I don't think anybody is predicting that we're in a recession.' Main cabin revenue fell 5% year-over-year in the second quarter, while premium revenue grew 5%, Delta CEO Ed Bastian said on CNBC. The carrier beat analyst expectations for the quarter and reinstated its full-year outlook, sending shares up some 12%. By trimming trips, Delta hopes to consolidate main cabin travel on peak flights, and, potentially, break even or start making revenue on it later this year, executives said. The premium cabin has been contributing to profit margin growth, Hauenstein said, adding that the carrier wants to improve service at the front of the plane through 'more segmentation." The carrier's results appear to have buoyed other airlines' shares Thursday. Southwest Airlines was (LUV) recently up nearly 8%; American Airlines Group (AAL) climbed more than 13% and United Airlines Holdings (UAL) jumped more than 15%. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Delta hits record profits and airline stocks bounce as passengers trade economy for luxury
Delta Air Lines posted record revenues for the second quarter on Thursday. Falling demand for economy has led to capacity cuts, but premium seats continue to boom. Shares in Delta, United, and American have climbed sharply since major declines at the start of 2025. Airlines' fortunes are starting to turn around thanks to a boom in premium travel. Economic uncertainty and tariff announcements gave the industry a rocky start to the year, with Delta Air Lines losing a third of its share price by April. "If you look at any measure of consumer confidence, it certainly took a big dip in the early part of the year and then again in April after the Liberation Day announcements were made," CEO Ed Bastian said during a Thursday call to discuss its Q2 earnings. Airline stocks are strongly correlated with the economy at large because travel is one of the first things people cut when they have less spending money. However, Thursday also saw Delta post bumper earnings. Its revenue of $15.5 billion was a record for the second quarter, with pre-tax profits of $1.8 billion. The stock rose 12% after beating Wall Street estimates, extending a gain of more than one-third over the past three months, having plummeted in the first few months of 2025. This pattern is reflected by Delta's main competitors, United and American, which both saw shares surge on Thursday. This embedded content is not available in your region. Bookings for economy seats and from Europeans have suffered, but that fall has been offset by a rise in demand for premium. Delta's second-quarter results showed passenger revenue for the main cabin fell 5% compared to last year, but for premium products, this rose 5%. Since the pandemic, travelers have been more interested in shelling out for upgraded experiences. Bastian said on the call that Delta's target consumer has a household income of at least $100,000, representing about 40% of the US. "That cohort has accumulated a significant amount of wealth in the post-COVID era," he added. Meanwhile, airlines have slashed capacity for domestic flights. After rising about four percentage points through April, it's now expected to be down by 1% industry-wide come September, said Delta president Glen Hauenstein. "I've been in this business quite a long time, and I've really never seen that amount of capacity come out in a non-recessionary environment," he added. "So I think this is a really good indication that the industry is doing what it needs to do to restore profitability." On the other hand, Delta's transatlantic capacity has grown, and revenues here rose 2% since last year's records. That's despite Europeans losing interest in visiting the US since Donald Trump's election prompted stricter immigration rules. "We're seeing a little bit of reduction of inbound coming from Europe into the US, but that's only 20% of our mix," Bastian told CNBC. "To the extent we have some reductions, we offset that with more Americans going in." He added that while the weaker dollar makes it more expensive for Americans to visit Europe, the exchange rate also makes Europeans visiting the US more valuable to Delta. "Overall, it's going to be a really strong summer for us in the transatlantic," he added. Plus, Bastian said he expects the summer peaks to be less dramatic, as heatwaves and overtourism protests could prompt more Americans to postpone their trips to later in the year. In all, Delta's results suggested that the worst of this year's volatility could be in the past. United is scheduled to announce its results next Thursday, followed by American the week after. Read the original article on Business Insider
