达美航空亏损近12亿美元Delta loses altitude after posting a nearly 12 billion

MONEY.


DELTA SHARES DOWN NEARLY 3%


TODAY AFTER THE AIRLINE REPORTED


EARNINGS, PHIL HAS THE DETAILS


>> THE REASON DELTA SHARES WERE


LOWER, ONE, A WIDER THAN


EXPECTED LOSS FOR Q1


TWO, THE GUIDANCE FOR Q2 ON THE


REVENUE SIDE MAY HAVE BEEN


LIGHTER THAN WHAT EXPECTED AND


IT PUT PRESSURE ON SHARES OF


DELTA TODAY.


LET'S TALK ABOUT THE OPTIMISM IN


TERMS OF THE ANALYST CALL, THE


OUTLOOK AND OUR INTERVIEW WITH


ED BASTION ON SQUAWK BOX


COUPLE THINGS


CASH BOOKING DOUBLE FROM JANUARY


TO MARCH, CLEARLY ACCELERATING


AND EXPECT TO TO BREAK EVEN BY


THE END OF JUNE AND IN THE THIRD


QUARTER.


TRAVEL CREDITS ARE PEOPLE WHO


BOOK A TICKET IN THE PAST AND


DIDN'T TAKE IT BECAUSE OF


COVID-19 RESTRICTIONS THAT'S NOW


JUST 10 TO 15% OF THEIR


BOOKINGS


LEISURE TRAVEL IS NOW 85% OF THE


2019 LEVEL


ONLY DOWN 15% COMPARED TO


PRE-PANDEMIC LEVELS.


HERE'S ED BASTBASTIONS


TALKIN


25UKING ABOUT BRINGING BACK


BUSINESS TRAVEL.


>> I EXPECT WE'LL START SEEING


OFFICES REOPEN THIS SUMMER


I THINK BY FALL WE'LL SEE A


PRETTY SIGNIFICANT BUMP IN


BUSINESS TRAVEL.


PEOPLE NEED TO GET BACK TO THEIR


CUSTOMERS THEIR OWN PEOPLE, GET


OUT TO THE MARKETPLACE, CONTINUE


TO DRIVE THEIR BUSINESSES


FORWARD.


I KNOW HERE AT DELTA WE'RE


PLANNING ON REOPENING OUR CAMPUS


OFFICIALLY IN THE MONTH OF JUNE.


>> TAKE A LOOK AT SHARES OF


DELTA.


KEEP IN MIND THERE ARE TWO PARTS


OF THE BUSINESS THAT BASICALLY


HALF THE BUSINESS, THAT IS,


UNDER PRESSURE RIGHT NOW


BUSINESS TRAVEL AS WELL AS


INTERNATIONAL.


HE TALKED ABOUT BUSINESS


ON THE INTERNATIONAL SIDE DON'T


EXPECT ANYTHING SOON


NOT JUST FOR DELTA BUT ALL THE


AIRLINES


WHEN YOU TALK TO EXECUTIVES THEY


ALL SAY LOOK FOR THE UK BEFORE


THE EU OPENS UP, AGAIN, NOT


EXPECTED TO HAPPEN SOON.


NEXT WEEK YOU HAVE AMERICAN,


ALASKA, UNITED AND SOUTHWEST


WE'LL SEE THEIR PATH OF


PROFITABILITY NEXT WEEK.


>> PHIL, THANKS.


NADINE, DO YOU HAVE A POSITION


IN AIRLINES?


>>  WE DO, WE'D TAKE A FLYER ON


DELTA, IF THEY CAN GENERATE SOME


CASH IN JUNE


THEY HAVE MENTIONED NON-FUEL


COST GOING UP BUT WE THINK THIS


IS A BIT OF A COLD SPRING AND


TRADING LOW END AT $46 AND


CHANGE IMPLIES HIGH END 7 TO 8


UPSIDE ON THE NEAR TERM.


SO WE LIKE WHERE THERE'S A LOT


OF NEGATIVITY BAKED IN


IT'S REALLY ABOUT EXECUTION, THE


ECONOMY COMING BACK, SOME OF THE


TRAVEL COMING BACK, SO WE LIKE


IT.


>> BONAWYN, WHERE DO YOU STAND


NOW?


>> I THINK IT'S A NAME YOU CAN


OWN BECAUSE YOU SEE VALUATIONS


IN EVERY OTHER PART OF THE


MARKET JUST SO HIGH.


YOU'RE GOING TO SEE A FLIGHT TO


THINGS THAT HAVE UNDER PERFORMED


THOUGH IT IS QUITE UP A BIT FROM


ITS BASE


I DO THINK THE ROAD TO


REBOUNDING WILL BE A BIT MORE


PROTRACTED PERHAPS


BECAUSE WHERE YOU SEE REBOUNDS


IS LOWER MARKET BUSINESS


THE INTERNATIONAL AND BUSINESS