|Bid||0.00 x 1100|
|Ask||0.00 x 1200|
|Day's range||29.02 - 31.32|
|52-week range||19.10 - 63.44|
|Beta (5Y monthly)||1.29|
|PE ratio (TTM)||4.05|
|Earnings date||07 Apr 2020 - 12 Apr 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||18 Feb 2020|
|1y target est||51.33|
(Bloomberg) -- Airlines worldwide raised more than $17 billion in bank loans in March to shore up their finances amid the coronavirus outbreak.U.S. carriers were the most active, borrowing $12.5 billion, according to data compiled by Bloomberg. Delta Air Lines Inc. is the top borrower this month, obtaining $5.6 billion, followed by Singapore Airlines, which secured a S$4 billion ($2.8 billion) bridge loan, and United Airlines Holdings Inc., which raised $2.5 billion.The airlines have borrowed new loans or drawn down on existing credit lines that they typically didn’t use before the health crisis. Companies in all industries globally have raised more than $230 billion from commercial banks since early March in response to the virus.Eleven other airlines, including British Airways Plc and Etihad Airways PJSC, have about $8 billion in combined revolving facilities that they may not yet have drawn, the data show.The aviation industry is asking individual governments for state aid, including carriers based in Germany, Thailand, and the U.S.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Donald Trump is consulting on coronavirus aid for companies with top Wall Street executives including BlackRock Inc. Chief Executive Officer Larry Fink, who met with the president last week, according to people familiar with the matter.“People like Larry Fink we’re talking to, that’s BlackRock -- we have the smartest people, and they all want to do it,” Trump told reporters Friday at the White House. “This, to them, they love this country, they all want to do it, so we’re speaking to people like that and they’ll be able to work it out.”Trump made the comments about assistance from Wall Street after describing the financial peril faced by airlines, including Delta Air Lines Inc. and United Airlines Holdings Inc.Fink’s visit to the White House wasn’t publicly announced and Trump didn’t mention that they had spoken before Friday. BlackRock didn’t respond to a request for comment.Fink said Thursday in a conference call with clients that he’d been in talks with the White House in recent days, without elaborating.On Tuesday, the Federal Reserve tapped BlackRock to shepherd several debt-buying programs on behalf of the U.S. central bank as it works to revive the economy.The president signed the largest stimulus package in U.S. history on Friday, a $2 trillion bill intended to rescue the coronavirus-battered economy.The measure provides a massive injection of loans, tax breaks and direct payments to large corporations, small businesses and individuals whose revenue and income have plummeted under “social distancing” restrictions meant to slow the virus’ spread.The U.S. has become the worldwide epicenter of the pandemic, with more than 100,000 people infected as of Friday, surpassing China.Trump has raised the prospect of easing coronavirus restrictions on most people in the U.S. by the Easter holiday after a record 3.3 million Americans had filed for unemployment.Federal officials are considering a plan to rank U.S. counties as low, medium, or high risk, with the hope of providing state and local officials corresponding guidance for what distancing measures they should implement -- and which can be lifted and where.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
U.S. airlines prepare to navigate a turbulent future even with billions in aid from U.S. taxpayers.
With coronavirus wreaking havoc on air-travel demand, the likes of Alaska Air (ALK) and United Airlines (UAL) trim capacity.
The U.S. Senate's rescue package includes a $58 billion financial aid in the form of grants and loans, for the struggling U.S. airline industry.
To the annoyance of some shareholders, Delta Air Lines (NYSE:DAL) shares are down a considerable 36% in the last...
The Dow and the S&P 500 closed in the positive territory on Wednesday as investors remained hopeful that the U.S. Senate will pass a $2 trillion economic rescue package to boost beaten-down stocks.
A new poll shows Americans have a pessimistic view of the airline industry in lieu of the COVID-19 pandemic
(Bloomberg) -- Delta Air Lines Inc. lost its coveted investment-grade status from one rater as S&P Global Ratings cut the company to junk.“The steep decline in airline bookings due to the coronavirus outbreak will sharply reduce Delta Air Lines Inc.’s revenue and cash flow,” S&P said in a statement Tuesday as it lowered the carrier two notches to BB, or two steps below investment grade. The carrier’s efforts to cut costs probably won’t be enough to offset the lost sales, S&P said.Airlines around the world are contending with what a trade group called the industry’s worst crisis ever, as the coronavirus pandemic torpedoes travel demand. Global carriers may lose $252 billion in sales this year, the International Air Transport Association said, and U.S. passenger counts are down 86% from a year ago as Congress weighs a bailout for the industry.“We expect passenger air traffic to begin to recover in late 2020,” S&P said. “However, any further delays will prolong the weakness in the company’s credit metrics.”If the shutdowns and travel restrictions start to improve by May, airlines should have sufficient cash to weather the storm and will make it through, Raymond James analyst Savanthi Syth said on Bloomberg TV. Anything beyond the summer and Labor Day, however, will require government support for carriers to continue employing at current levels, Syth said.A cut to junk from a second rater will make Delta a so-called fallen angel and its $4.9 billion of debt would leave the Bloomberg Barclays investment-grade index. Moody’s Investors Service said in a statement last week that it was considering cutting the airline to junk from the lowest investment-grade rating. Fitch also rates the company one step above high yield with a negative outlook.The cost to protect Delta’s debt from default for five years has soared over the past month, increasing more than fivefold to above 700 basis points, according to ICE Data Services. It retreated a bit Tuesday amid optimism for government aid. In the same time, its most actively-traded bonds, the 2.9% notes due 2024, have fallen to 80 cents from above par.(Updates with analyst quote from fifth paragraph. An earlier version of this story corrected the credit rating in the second paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Zacks Analyst Blog Highlights: Delta Air Lines, United Airlines, Southwest Airlines, JetBlue Airways and American Airlines
(Bloomberg) -- Four of the world’s leading airlines laid bare the devastation the coronavirus is inflicting on travel, with three major carriers parking nearly 2,000 planes and Qantas Airways Ltd. temporarily laying off close to 30,000 staff in some of the industry’s deepest cuts to date.The measures at Deutsche Lufthansa AG, Europe’s biggest carrier, go furthest, with Chief Executive Officer Carsten Spohr saying he’ll idle 700 aircraft and 95% of seats, shrinking the flight schedule to a level last seen in 1955. Delta Air Lines Inc. is grounding half its fleet to wipe out 70% of capacity, while American Airlines Group Inc. will park 450 aircraft as it cuts international and domestic routes. Qantas is ceasing international operations.“The coronavirus has placed the entire global economy and our company in an unprecedented state of emergency,” Spohr said. “No one can foresee the consequences. We have to counter this extraordinary situation with drastic and sometimes painful measures.”The cuts highlight the desperation gripping airlines as they shrink operations amid a collapse in demand and moves to close national borders. For many operators that means mothballing the business and taking draconian steps to stop cash draining away while the virus retains its grip. Even then, the sector may need $200 billion in state support to weather the pandemic, according to the International Air Transport Association.U.S. carriers are seeking $58 billion in government loan guarantees, grants and tax relief.“The longer this crisis lasts, the more likely it is that the future of aviation cannot be guaranteed without state aid,” Spohr said, after new bookings at Lufthansa for the week through March 15 fell almost 70%.American’s parked aircraft, representing 29% of its fleet, come as it slashes international flying by 75% and domestic by 30%. That means cutting more than 55,000 April flights, with more reductions coming in May, President Robert Isom told workers in a message Thursday. The Fort Worth, Texas-based carrier is offering voluntary unpaid leaves and early retirement to help trim spending.“This is a crisis unlike any we’ve faced in the past,” Isom said. “While these steps are unparalleled, we expect demand to fall even more before it gets better.”Delta CEO Ed Bastian told staff Wednesday that revenue this month will drop by almost $2 billion from a year earlier, with April projected to be even worse. About 10,000 Delta workers have applied for voluntary leave.“Making swift decisions now to reduce the losses and preserve cash will provide us the resources to rebound from the other side of this crisis,” Bastian said in a memo released by the airline.Qantas furloughed most of its 30,000-strong workforce. The Australian company and low-cost unit Jetstar will suspend overseas services from late March until at least the end of May, it said Thursday, with domestic operations cut 60%.CEO Alan Joyce said in a note to employees that demand had evaporated. “We have no work for most of our people,” he said. “We have to make difficult decisions to guarantee the future of the national carrier.”Lufthansa is expected to seek a loan from the government, which could take a stake as part of a rescue package, Bloomberg News reported Friday. Spohr said talks have been held with a state bank but that no bailout is needed right now.The group’s Italian arm, Air Dolimiti, has already halted flights, while the Austrian brand is set to ground operations and a Belgian division will follow suit in two days. The Swiss unit is parking planes at an airport near Zurich.(Corrects ninth paragraph of story published March 19 to remove reference to Delta flight attendants taking early retirement)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
To manage the coronavirus-inflicted tepid demand scenario, American Airlines (AAL) aims to reduce its international flights by 75% in April.
Airlines are seeking federal help to reinforce their liquidity positions, which remain stressed due to the rampant coronavirus spread.
As demand continues to fall in the wake of the coronavirus outbreak, Delta (DAL) expects second-quarter revenues to drop 80% year over year.
The grounding of thousands of aircraft due to the coronavirus has created a business opportunity for remote desert aircraft storage facilities, which are scrambling to meet a surge in demand. This week Delta Air Lines began parking planes at Pinal Airpark in Arizona and American Airlines is diverting its fleet to several locations, including the Roswell International Air Center in New Mexico — a former US military base that is now one of the world’s largest aircraft boneyards and storage facilities.
(Bloomberg) -- Emirates, the world’s largest long-haul airline, will suspend all of its passenger operations this week, in the latest concession to the coronavirus pandemic that has devastated global travel.Flights to all destinations will cease from March 25, Dubai-based Emirates said Sunday in an email. Cargo service will remain in operations, the company said.“We cannot viably operate passenger services until countries re-open their borders, and travel confidence returns,” Chairman and Chief Executive Officer Ahmed bin Saeed Al Maktoum said in a memo to employees seen by Bloomberg. “Some of our competitors, or even our supply chain partners, may not survive this crisis.”The airline’s announcement came a few hours before the United Arab Emirates’ General Civil Aviation Authority said it will halt all inbound and outbound passenger flights for two weeks. The U.A.E. is also home to Flydubai, Abu Dhabi’s Etihad Airways and Air Arabia, the Middle East’s largest discount carrier.With its fleet of all wide-body aircraft, the Emirates has turned Dubai into a hub for global travel, typically operating more than 500 flights a day. That mission, which has fed the city’s growth since Emirates was founded in the mid-1980s, is now under assault by the coronavirus pandemic.Shutting DownCountries are closing off access to protect their populace, dealing a body blow to the global airline industry. Carriers that were in relatively good health at the start of the year have had to ground fleets, lay off staff and request government aid for survival.U.S. Airlines Want Cash Grants Included in $58 Billion Bailout BillU.K. Airline Bailout in Flux With Range of Steps Under ReviewWorld’s Major Airlines Ground Jets, Idle Thousands of Staff (1)U.A.E. Blocks Almost All Travel, Halts Work Permits on VirusMajor U.S. carriers like Delta Air Lines Inc. and American Airlines Group Inc. are waiting on lawmakers to clear a bailout package, while in London, where Heathrow airport, the busiest hub in Europe, the government is considering moves to support the industry that include loans and potentially equity infusions.Similar scenarios are playing out in Germany, France and Scandinavia, while China has already nationalized the parent of Hainan Airlines Holding Co., as is Italy with bankrupt flag-carrier Alitalia.Long-Distance HubThe Emirates business model is built around a fleet of Airbus SE and Boeing Co. long-distance aircraft carrying passengers between all corners of the globe, and while the spread of the virus is easing in parts of Asia, it’s accelerating in Europe and North America.The airline was just emerging from another downturn, completing a strategy rethink late last year after persistent low oil prices weighed on regional economic growth.Emirates dropped the Airbus A380 from its long-term plans, ordered smaller wide-body aircraft and reviewed its route network, while increasing cooperation with regional discount carrier Flydubai -- also state-owned.Now a recovery in oil prices has been reversed by the outbreak, with a price war between Saudi Arabia and Russia exacerbating the economic hit on the Gulf.“Until January 2020, the Emirates Group was doing well against our current financial year targets,” Sheikh Ahmed said. “But COVID-19 has brought all that to a sudden and painful halt over the past six weeks.”The airline’s base at Dubai International Airport, the world’s busiest in terms of international passengers, has followed other jurisdictions in banning tourists and residence visa holders from entering the country.Emirates plans to ground 230 planes, or 85% of its fleet, Chief Operating Officer Adel Al Redha told Alarabiya News Channel on Sunday.The Gulf carrier was considering idling the bulk of its 115 Airbus A380 super-jumbo aircraft, and plans to delay the handovers of the final handful of planes that are due, Bloomberg News has reported. The airline also operates 155 Boeing 777 jets.Salary CutsThe outlook for travel demand remains weak across markets in the short to medium term, Emirates said, adding that it will take the following measures:A temporary reduction of basic salary for the majority of Emirates Group employees for three months, ranging from 25% to 50%.Employees will continue to be paid their other allowances during this time. Junior level employees will be exempt from basic salary reduction.Emirates President Tim Clark and Dnata President Gary Chapman will take a 100% basic salary cut for three months.Cabin service attendants’ basic salaries or fixed allowances will not be reduced, according to the memo.“If any employee had volunteered previously for unpaid leave, they can now opt to cancel that leave in lieu of the above,” Sheikh Ahmed said.Flydubai, which has an extensive partnership with Emirates, canceled more than 85% of its flights.Read more: Halt Travel to Fight Coronavirus? The Pros and Cons: QuickTake(Updates with U.A.E. decision to halt all flights in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
CEOs from America’s largest publicly traded airlines sent an urgent letter Saturday to Congressional leaders promising to stop stock buybacks and paying dividends in exchange for a multi-billion dollar coronavirus bailout.
(Bloomberg) -- U.S. airlines are strenuously pushing the Trump administration and Congress for cash grants, arguing behind the scenes that a Senate proposal to hand them billions of dollars in taxpayer-backed loans isn’t sufficient to guarantee their long-term health, two people familiar with the matter said.Over the past week, industry lobby group Airlines for America had been urging the White House to agree to its request for $58 billion. Now, the airlines and administration officials are pressing Congress for quick action on the industry bailout, aimed to blunt the fallout from the Covid-19 pandemic.However, the talks are now focused on how much of the $58 billion should be designated as loans—with airlines arguing they need cash grants to cover labor costs, said the two people, who requested anonymity because the negotiations are private. Grants would help to preserve the industry’s long-term financial viability, the carriers contend. Right now, the package is entirely made up of loans, which the airlines would have to repay.Airlines for America, the industry’s lobbying group, said late Thursday in a statement that “loans alone are not sufficient and should be coupled with a worker payroll assistance program and targeted tax relief.” Such an approach would “allow airlines to keep operating through this crisis and protect” the industry’s 750,000 direct employees by keeping them on the job.The carriers are also arguing that cash grants will reduce the financial impact of an expected flood of unemployment filings across the country, leaving it better positioned to resume regular operations whenever the coronavirus recedes, the people said. Airlines also expect the global economic shock could lead to a deep recession, which would further erode ticket sales this year and next.A request for comment from a Treasury Department spokesperson after regular business hours wasn’t immediately returned.Read More: U.S. Airlines Rush to Cut Costs While Congress Studies BailoutAny federal aid for the airlines, be it loans or direct grants, is expected to come with restrictions on how the money can be used, especially as a taxpayer rescue for airlines (and other large private enterprises) has drawn opposition from some in Congress.On Friday, Republican Senator Rick Scott of Florida said “we shouldn’t be bailing out large corporations that have enjoyed years of growth and prosperity.” Meanwhile, about 100 Democrats in the House of Representatives signed a letter to their leadership calling for restrictions in any bailouts. They want federal aid for large companies to be restricted to its front-line workers, caps on senior executives’ pay and equity stakes held on behalf of taxpayers.The carriers are warning that lost ticket sales for April and May—the two months for which travel is expected to decline most drastically—will total more than $26 billion at the four largest U.S. airlines. Together, they spend about $3.7 billion per month on employee compensation, supported by about $13.2 billion in monthly revenues in normal times, according to their 2019 financial statements.The airlines want the grants to help cover payrolls, which would in any case largely be paid from government and private loans, the people said. Such an arrangement would let the largest carriers, including American Airlines Group Inc. and United Airlines Holdings Inc., emerge from an economic downturn in a healthier financial state and lessen their debt loads, they said.Airlines are already borrowing billions of dollars in the private market: Delta arranged a $2.6 billion credit line and last week United secured a $2 billion loan from four banks. They are among at least six U.S. carriers to seek new financing since the coronavirus vaporized airline revenues. Many airlines have recently suspended their share-repurchase programs and dividend payments, including Delta on Friday.Even when people begin to fly again, the airlines expect to face a global recession.“Given the underlying damage the virus has created to the overall economy, that demand recovery will take an extended period once the virus is contained,” Ed Bastian, chief executive of Delta Air Lines Inc., wrote Friday in a memo to employees.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.