60.93 +0.02 (0.03%)
After hours: 5:54PM EDT
|Bid||61.16 x 900|
|Ask||60.99 x 3200|
|Day's range||60.86 - 63.09|
|52-week range||45.08 - 63.27|
|Beta (3Y monthly)||1.30|
|PE ratio (TTM)||9.09|
|Forward dividend & yield||1.61 (2.57%)|
|1y target est||N/A|
Zacks Value Trader Highlights: Sinopec, Health Insurance Innovations, Navient, Ford and Delta
(Bloomberg) -- President Donald Trump is poised to meet with the heads of American Airlines Group Inc., United Airlines Holdings Inc. and Qatar Airways to discuss competition issues amid a long-running feud pitting the U.S. carriers against their Persian Gulf rivals, people familiar with the matter said.Vice President Mike Pence will also attend the meeting Thursday afternoon with American Chief Executive Officer Doug Parker and United’s Oscar Munoz, said the people, including a White House official, who asked not to be named ahead of the private discussions. American, United and Delta Air Lines Inc. have long argued that government subsidies enable Qatar Airways, Emirates and Etihad Airways to compete unfairly.The White House meeting comes two weeks after Trump hosted the emir of Qatar at the White House. Qatar Airways CEO Akbar Al Baker will also attend the Thursday meeting, as will Fred Smith of FedEx Corp., Robin Hayes of JetBlue Airways Corp. and Bill Flynn of Atlas Air Worldwide Holdings Inc., a freight and charter company. Those three U.S. companies have opposed American, United and Delta on the subject of the Persian Gulf carriers.The U.S. and Qatar have recently been at odds over whether Qatar Air’s stake in Air Italy is meant to undercut U.S. competitors, despite a previous deal between the nations. U.S. Secretary of State Mike Pompeo said in April that he was “personally engaged on this issue and we are working to make sure that every party to those agreements complies with every element of those agreements.”Delta CEO Ed Bastian isn’t attending the meeting because he’s traveling abroad. The Atlanta-based airline reaffirmed this month that it is considering an investment in Italy’s Alitalia.To contact the reporters on this story: Justin Bachman in Dallas at email@example.com;Josh Wingrove in Washington at firstname.lastname@example.org;Jennifer Jacobs in Washington at email@example.comTo contact the editors responsible for this story: Brendan Case at firstname.lastname@example.org, ;Michael Shepard at email@example.com, Tony RobinsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The Zacks Analyst Blog Highlights: Southern Company, Prologis, Delta Air Lines, Occidental Petroleum and Dollar General
(Bloomberg Opinion) -- By the time it crossed the Mississippi River at Burlington, Iowa, last week, our California Zephyr was running more than eight hours late on its journey from the San Francisco Bay Area to Chicago. The last meal, a free, off-menu beef stew, had just been served in the dining car. My wife and I opted instead to consume a couple of Maruchan Instant Lunch cups, purchased in the cafe, accompanied by a half bottle of Kendall-Jackson chardonnay, also from the cafe. Occasional wafts of sewage odor tainted the air, the aging Superliner cars creaked and rattled, and the dining- and sleeping-car staff exuded fatigue and resignation. Even the conductor, who had just gotten on at Ottumwa, sounded appropriately defeated when he reaffirmed over the loudspeaker that, yes, every connecting train in Chicago, including the Lakeshore Limited to New York for which we had tickets, would be leaving before our train got there.Things did improve a little once we entered Illinois. My wife got an unexpected email from Amtrak with a PDF ticket attached for the next day’s Lakeshore Limited, in more spacious accommodations than what we had originally booked. The train also started going consistently faster, mostly between 70 and 80 miles an hour, chipping away at our estimated arrival time by a minute here and a minute there until we were forced to sit still outside the Chicago suburb of Naperville to let a Metra commuter train go by. After a lovely day in Chicago (we stayed with friends, but Amtrak would have put us up in a hotel if needed), we boarded the train to New York only to learn that its departure would be delayed two hours to wait on two very late trains arriving via different routes from Los Angeles, the Southwest Chief and Texas Eagle. The conductor sounded irked about this rather than resigned, and over the next 20 hours we made up about a third of the lost time, arriving in Manhattan in the middle of a minor blackout that spared Penn Station but made getting home from there something of an adventure. Isn’t long-distance train travel great!?!Actually, it is. I’m not hankering to get on the California Zephyr again anytime soon, but I’m glad to have had the experience. It offered spectacular scenery, mealtime encounters with interesting people from all over (if you’re in a party of less than four, you’re always seated with strangers), and hour after hour after hour of mostly blissful reading and napping. A few months ago, the New York Times Magazine had a detailed account by journalist/humorist Caity Weaver of a trip from New York to Los Angeles on the Lakeshore Limited and Southwest Chief that captured the vibe quite nicely, so I’ll stop here with the travelogue and start with some numbers.Yes, that’s right: The California Zephyr, with one eastbound train a day and one westbound, lost more money last year than any other service operated by the National Railroad Passenger Corp., aka Amtrak. On a per-passenger-mile basis, it wasn’t so bad (the three-times-a-week Sunset Limited was the worst), but still, the operating losses from the California Zephyr, Southwest Chief and Empire Builder together nearly equaled Amtrak’s total fiscal 2018 operating loss of $170.6 million. Since the start of fiscal 2019 in October, the California Zephyr alone has lost $40.9 million, even as Amtrak’s operating loss has dwindled to $50.9 million and is projected to approach zero for the full fiscal year.This is possible because Amtrak also operates on shorter routes with much more frequent services that carry many more passengers and in some cases even turn big operating profits:These numbers include subsidies from the states, which add up to about 7% of overall operating revenue, with California and Illinois the biggest contributors. They leave out capital expenditures, which are highest for the Northeast Corridor along which the Acela and Northeast Regional trains travel because Amtrak owns most of the track and is thus responsible for its upkeep. The California Zephyr uses track owned and maintained by freight railroads BNSF, a subsidiary of Berkshire Hathaway Inc., and Union Pacific Corp. But that’s actually a big part of the problem faced by it and other long-distance routes.The 1970 federal law that released private railroads from the obligation to carry passengers and created Amtrak decreed that its trains be given priority over freight. But because Amtrak’s long-distance trains run infrequently on tracks controlled by others and a certain amount of schedule unpredictability is inherent in the distances they travel — and because, Amtrak complains, the freight railroads aren’t obeying the law — they are constantly being delayed by conditions outside their control.The California Zephyr that I traveled on started out about an hour late because of engine problems, kept getting later because of congestion and track work, had to restrict its speed while climbing the Rockies in Colorado because it was hot out, took a seeming eternity to back into and then pull out of Denver’s Union Station, endured more track-repair-related slowdowns amid the waterlogged cornfields of Nebraska, then came to a halt because the conductors and engineer had been on the job for 12 hours straight and another federal law required that they sit tight until a replacement crew came in from Lincoln. On the westward journey two weeks earlier, my wife and son (he and I each flew one way) spent several early-morning hours parked near the Nevada-Utah border after their train pulled onto a siding to let a faster-moving freight train pass, and the freight engine promptly broke down.On track that Amtrak owns or otherwise exercises some control over — or even just uses frequently enough that its comings and goings can be counted upon — these problems are less pronounced. Amtrak’s Northeast Corridor trains were on time at 76.2% of their stops in fiscal 2018 and its other short-haul trains 77.7%. For the long-distance trains, that percentage was only 52.1%, even though they’re subjected to a looser definition of “on time” than shorter routes are.(1)Amtrak, then, is really running two train systems. One provides residents of cities in the Northeast, Midwest and along the West Coast with regional train service that’s not great by Western European or East Asian standards but is useful to lots of people and seems like it could get by on ticket revenue, state subsidies, and some federal help with financing big capital projects such as that much-needed new tunnel under the Hudson River. The other consists of 15 longer routes that have appeal for tourists, residents of some isolated towns and airplane-shunning Amish folk (if riding Amtrak through the Midwest was your only experience of this country, you’d think it was about 10% Amish) but cannot survive without ongoing operating subsidies from Congress. The $1.9 billion that Congress appropriated to Amtrak for fiscal 2019 amounts to only about 0.04% of total federal spending, and one could perhaps argue that subsidies for long-distance rail are worth it in some kind of nation-building or nation-advertising sense. But those subsidies do seem to reduce Washington’s appetite for investments to upgrade Amtrak’s more heavily traveled intercity offerings, which are of far more economic value.Current Amtrak Chief Executive Officer Richard Anderson, who once held the same job at Delta Air Lines Inc., has considered this situation and, as the Wall Street Journal’s Ted Mann described a few weeks ago, understandably concluded that the long-distance routes aren’t a priority. Last year, for example, Anderson said that rather than pay to maintain a 219-mile stretch of Southwest Chief track that owner BNSF no longer uses, Amtrak would replace the train with bus service between Albuquerque, New Mexico, and Dodge City, Kansas.The White House has taken a similar stance, arguing in the proposed fiscal-year 2020 budget that:The Long Distance network has not changed from its original iteration 40 years ago. It does not provide efficient services in areas where passenger rail is a competitive form of transportation and inadequately serves low population areas through which they [sic] travel with infrequent and inconvenient service. The Budget proposes that Federal operating support for Long Distance routes would now be provided through the Restoration and Enhancement (R&E) Grant program, not Amtrak's annual grant, and then phased out entirely.Senators from the affected states forced Anderson to back down on his Southwest Chief plan, though, at least through this fiscal year. And President Donald Trump — who seems at best only faintly aware of the things that Office of Management and Budget Director (and acting chief of staff) Mick Mulvaney puts in the annual budget proposals — surely isn’t going to make cutting rural train service a priority in the run-up to the 2020 election, and wouldn’t make any headway on Capitol Hill even if he did. If I’ve read the maps correctly, the 10 money-losing long-distance trains in the table above travel through 36 states, while the 10 most popular routes touch just 14. Amtrak definitely has a future, with ridership up 41% since 2000. But the arithmetic of U.S. Senate representation and Electoral College votes may keep it chained to its past for a while yet.(1) Trips of up to 250 miles are considered on time if they arrive less than 10 minutes beyond the scheduled arrival time; 251-350 miles, 15 minutes; 351-450 miles, 20 minutes; 451-550 miles, 25 minutes; and greater than 550 miles, 30 minutes.To contact the author of this story: Justin Fox at firstname.lastname@example.orgTo contact the editor responsible for this story: Brooke Sample at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Justin Fox is a Bloomberg Opinion columnist covering business. He was the editorial director of Harvard Business Review and wrote for Time, Fortune and American Banker. He is the author of “The Myth of the Rational Market.”For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Delta Air Lines (DAL) has seen solid earnings estimate revision activity over the past month, and belongs to a strong industry as well.
Delta Air Lines is on track to surpass 150 peak-day departures in Boston this fall, and it hopes to reach 200 peak-day departures there at some point in 2021.
Delta's (DAL) solid second-quarter 2019 earnings report and American Airlines' (AAL) favorable second-quarter unit revenue projection contribute to the sector tracker's increase.
United Airlines tweaked its profit outlook higher for the full year despite the financial impact of the grounding of the carrier’s 737 Max fleet, cutting capacity guidance and announcing second-quarter earnings well above market expectations. The Chicago-based carrier said Tuesday in results released after the market close that its adjusted earnings per share for 2019 would be in the $10.50 to $12 range, up from prior guidance of $10 to $12. Adjusted earnings per share for the quarter ended June 30 came in at $4.21, well above market expectations of $4.07 and the year-earlier figure of $3.23.
United Airlines (UAL) stock currently sits down 6.4% from its 52-week high, although has climbed 18.3% since the beginning of June. With Q2 2019 earnings season unofficially beginning this week, let's see what investors might expect from United's earnings report.
Zacks.com featured highlights include: Lockheed Martin, Delta Air Lines, Core-Mark, Caseys General Stores and Intuit
Delta (DAL) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
The Benetton’s toll road operator Atlantia is to join a public-private group aiming to revive Italy’s long lossmaking airline Alitalia. In a statement, the board of directors of Italian state rail group of Ferrovie dello Stato Italiane said it “had today identified Atlantia as the partner to work alongside Delta Air Lines and the Ministry of Economy and Finance on the Alitalia operation”. Atlantia intends to inject about €300m to acquire a stake of about 30 per cent in a new holding company led by Ferrovie and the Italian finance ministry that would control Alitalia, a person familiar with the deliberations said last week.
(Bloomberg) -- Alitalia’s rescue by Italy’s state-owned railway and investors including U.S. carrier Delta Air Lines Inc. may still be weeks away despite a looming deadline for offers for the loss-plagued carrier, people familiar with the matter said.Ferrovie dello Stato SpA is set to tell the carrier on Monday that its rescue plan has attracted potential investors, including Delta and Atlantia SpA, the people said. Atlantia, the Benetton family’s industrial arm that operates Rome’s airports, on Sunday confirmed its interest to Ferrovie’s adviser Mediobanca SpA, but said it may want changes to the rescue designed by the state-controlled railroad, the people said.Deputy Prime Minister Luigi Di Maio, who is leading the latest effort to save the flagship carrier, has been forced to relax the government’s Monday deadline for binding offers and will now accept an expression of interest, according to an official in Di Maio’s economic development ministry. Ferrovie and Atlantia declined to comment. Delta confirmed its interest in becoming a minority shareholder.Alitalia has been under special administration for more than two years and now faces either liquidation or de-facto nationalization. The airline loses about 700,000 euros ($789,000) a day and has hasn’t posted profit for at least 15 years. The total burden to taxpayers has run to 10 billion euros since 2008, according to estimates by Andrea Giuricin, a professor at Milan Bicocca University."We should stop a new nationalization," said Giuricin, who owns an advisory firm that once worked for Alitalia and recently distributed an online petition against more state intervention.|The board of directors of Atlantia on July 11 gave Chief Executive Office Giovanni Castellucci a mandate to evaluate Alitalia’s rescue plan. Atlantia invested in two previous Alitalia bailouts that failed to revive the airline. The current rescue comes at a time when Atlantia’s relations with the government are strained over the collapse last year of a bridge it managed in Genoa. Forty three people were killed and the tragedy prompted threats by the government to revoke Atlantia’s roadway concessions.The Ferrovie offer may also be supported by the Toto Group, a company with holdings that spans from renewable energy to toll-road concessions that is controlled by Italian entrepreneur Carlo Toto, the people said.Adviser Mediobanca received expressions of interest Sunday from Atlantia and Toto, as well as from former Avianca executive German Efromovich and Lazio Chairman Carlo Lotito, the people said. (Updates with Sunday expressions of interest in last paragraph.)\--With assistance from Sonia Sirletti and Justin Bachman.To contact the reporters on this story: Tommaso Ebhardt in Milan at firstname.lastname@example.org;John Follain in Rome at email@example.comTo contact the editors responsible for this story: Ben Sills at firstname.lastname@example.org, ;Chad Thomas at email@example.com, Tommaso Ebhardt, Andrew DavisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Italy’s government is nearing a rescue package for bankrupt Alitalia that could see U.S. carrier Delta Air Lines Inc. boost its stake in a new company from an initial minority holding, according to people familiar with the talks.With a deadline for bids set for Monday, Delta could step in now and also get an option to acquire more shares later from two state bodies -- railway operator Ferrovie dello Stato Italiane SpA and the Treasury -- or through a capital injection, the people said, asking not to be named discussing confidential negotiations. Ferrovie and the Treasury are expected to have a combined stake of about 50% initially with Delta getting around 10% to 15%.A deal for Alitalia would bolster Delta’s roster of international holdings, which the U.S. carrier has used aggressively to expand its global footprint. Delta owns 49 percent of Virgin Atlantic Airways Ltd. and Grupo Aeromexico SAB, along with smaller stakes in Air France-KLM, Brazil’s Gol Linhas Aereas Inteligentes SA and China Eastern Airlines.The Italian airline -- which filed for protection from creditors two times in the last decade and loses about 700,000 euros ($789,000) a day -- has been under special administration for more than two years and now faces either liquidation or a new attempt to revamp it backed by the the government. A group of public and private investors must submit a binding offer by Monday with Ferrovie’s adviser setting a deadline of 6 p.m. Sunday for potential bidders to express their interest.Deputy Prime Minister Luigi Di Maio, who as economic development minister is leading the rescue attempt, is seeking an agreement on a plan that could include the option for Delta to increase its initial stake and for the involvement of Atlantia SpA, the Benetton family’s industrial arm, which operates some of the country’s biggest airports, the people said.Ferrovie is set to hold a board meeting Monday to approve going ahead with the offer, the people said. But the company may not come up with a definitive bid that day as Atlantia only made its interest known on Thursday.The state rail operator is set to ask for a few more weeks to come up with a final, binding offer, after confirming Monday to Alitalia administrators that it plans to bid, having successfully lined up a group of investors who are ready to evaluate the plan, the people said.That strategy was discussed Friday morning in Rome by Di Maio and Ferrovie management, the people said. Di Maio has said he will not postpone Monday’s deadline. Ferrovie declined to comment.“Delta continues to work with Ferrovie and confirms it is interested in becoming a minority shareholder in a reorganized Alitalia,” the U.S. company said in response to a request for comment. “Discussions remain ongoing and any investment remains subject to Delta board approval.”(Update with details of offer from second paragraph.)\--With assistance from Sonia Sirletti and Justin Bachman.To contact the reporters on this story: John Follain in Rome at firstname.lastname@example.org;Tommaso Ebhardt in Milan at email@example.comTo contact the editors responsible for this story: Ben Sills at firstname.lastname@example.org, Andrew Davis, James AmottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.