Delta Air Lines Inc. Chief Executive Ed Bastian on Thursday sounded an optimistic note for 2017 earnings and said he expects to meet soon with the company’s newest and biggest investor, billionaire Warren Buffett. Two months ago Delta announced last year’s record-breaking performance, but noted that higher fuel prices and wage costs could weigh on margins during the March quarter before they expand again in the second half of the year.
Category: Delta Air Lines
Berkshire’s Airline Bet Said to Stem From Faith in Parker’s Call
Warren Buffett once quipped that a “farsighted capitalist” should have shot down Orville Wright at Kitty Hawk to spare investors all the losses they would suffer on airlines in the decades after the birth of flight. That’s why it was a surprise when, in November, the billionaire’s Berkshire Hathaway Inc. disclosed investments in the four largest U.S. carriers: American Airlines Group Inc., Delta Air Lines Inc., Southwest Airlines Co.
Airline CEOs Seek Tillerson Meeting on Feud With Gulf Carriers
The three biggest U.S. airlines asked for a meeting with new Secretary of State Rex Tillerson to discuss their long-held contention that billions of government subsidies enable the Persian Gulf carriers to compete unfairly for passengers.
Delta’s U.S. Grounding Is Lifted After Latest Computer Glitch
Delta Air Lines Inc. started resuming U.S. domestic flights after a 2 1/2-hour computer breakdown grounded about 150 flights and left passengers stranded across the country. “I want to apologize to all of our customers who have been impacted by this frustrating situation,” Delta Chief Executive Officer Ed Bastian said in the statement.
United Airlines Said to Plan Los Angeles Push in Comeback Effort
United Continental Holdings Inc. is targeting a major expansion at Los Angeles International Airport in an effort to reverse a slide that’s left the airline languishing behind its biggest rivals at the busiest West Coast hub, said people familiar with the plans. President Scott Kirby told United pilots this month that the company needs more space and is studying plans to claim most or all of a future terminal, said the people, who asked not to be identified because the information is private.
Delta Sees Unit Revenue Gains but Higher Fuel and Labor Costs Will Cut Margins
Delta says first-quarter unit revenue will be flat to up 2% but margins will fall due to higher costs for fuel and labor. Delta Air Lines said fourth-quarter net income fell due to a new pilot contract but current quarter unit revenue will be flat to up 2%, reversing a long negative trend.
Why Jim Cramer Remains Cautious on Delta
While the airline sector may look attractive, not all the stocks are the same. That’s one reason Cramer remains cautious on Delta.
Delta Air Lines, Inc. and Aeromexico Join Forces
This will enable them to coordinate their efforts in the transborder market. Delta and Aeromexico are going ahead with the joint venture even though U.S. regulators are forcing them to divest up to 28 airport slot pairs in New York and Mexico City.
Delta and Alaska Air Terminate Their “Frenemy” Relationship
While the two carriers have a codeshare and frequent flier partnership, they have aggressively entered each other’s markets and tried to steal customers from one another. This week, Delta and Alaska Air abandoned the pretense of being partners.
Bombardier CEO Seeks to Close Window on C Series Jet Discounts
Bombardier Inc. gained sales momentum for its flagship C Series jetliner this year with major orders from Air Canada and Delta Air Lines Inc. Now it’s looking to get away from the pricing discounts that fueled the aircraft’s rebound. The planemaker expects to book new sales in the coming months after racking up 360 firm orders and more than 400 commitments for the C Series, its biggest-ever plane, Chief Executive Officer Alain Bellemare said.