So are you seeing kind of similar tailwinds for luxury demand that Phil was outlining with regard to Delta. Yes. Um 2025 started very strong for us first quarter uh which led us believe that the year would be one of the best year of the airline uh since its creation 2014.Um the second quarter uh turned out to be a bit different. Um I started with the um announcement on the potential tariff consequences and obviously tariff are um generating constraints and uncertainty for business organizations and uh for t ...

Thursday, July 10, 2025Pre-market futures are flat this morning, again without much direction from outside influences. We’ve passed the 90-day tariff “deadline” with no ramifications; in fact, major indexes were up across the board, from a half of one percent to +1%. Currently, the Dow is -33 points, the S&P 500 is 0.0, the Nasdaq +13 points and the small-cap Russell 2000 +3.Jobless Claims Moderate on Initial Side: 227KWelcome news this Thursday morning are Weekly Jobless Claims levels, where Initial Jobles ...

count. >> Welcome back. Airlines in rally mode today the U.S. Global Jets ETF moving higher.But the group is still down for the year. Delta's leading that space this morning after posting a beat on quarterly results and reinstating their 2025 profit outlook. Earnings call is now underway.Stock's up almost 13% Phil LeBeau talked to Ed Bastian this morning and joins us with more. Hey Phil. >> And Carl.What we will expect on that call are a number of questions about what's going to happen to capacity after the ...

Financial Data and Key Metrics Changes - The company reported a pretax income of $1.8 billion, with earnings of $2.1 per share, and achieved record quarterly revenue of $15.5 billion, reflecting a year-over-year increase of approximately 1% [7][17] - The operating margin was 13.2%, and free cash flow generated during the quarter was $700 million, bringing the year-to-date total to $2 billion [7][27] - Non-fuel unit cost growth was 2.7%, consistent with previous quarters, indicating effective cost management despite operational challenges [27][30] Business Line Data and Key Metrics Changes - Premium revenue grew by 5% year-over-year, while loyalty revenue increased by 8%, demonstrating strong customer engagement, particularly among millennial and Gen Z segments [19][20] - Revenue from Delta's travel products portfolio grew by 8%, with significant growth in cars, stays, and cruise products [21] - Cargo revenue increased by 7% year-over-year, and MRO revenue accelerated to 29% growth, reflecting higher volumes and work scopes [21][22] Market Data and Key Metrics Changes - Overall demand for air travel remained stable compared to the previous year, with softness primarily in the main cabin during off-peak periods [9][10] - The company noted that corporate revenue improved modestly year-over-year, with premium products showing sustained strength [21][22] - The company expects revenue growth for September to be flat to up 4% year-over-year, indicating stable demand across consumer and corporate segments [22][30] Company Strategy and Development Direction - The company is focused on managing capacity to match demand and controlling costs to deliver strong earnings and free cash flow [11][12] - Strategic investments are being made to enhance the travel experience, expand customer choice, and deepen loyalty to the Delta brand [24][25] - The company is also investing in technology to optimize revenue through AI-enhanced pricing solutions and improving operational efficiency [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to restore financial guidance for the full year, expecting earnings per share of $5.25 to $6.25 and free cash flow of $3 billion to $4 billion [12][30] - The management highlighted a stable demand environment and anticipated improvements in unit revenue trends as the industry rationalizes domestic supply [23][30] - There is optimism regarding the recovery of business travel, with indications that consumer confidence is improving [46][68] Other Important Information - The company announced a 25% increase in its quarterly dividend, reflecting strong cash generation and commitment to returning cash to shareholders [7][30] - The company has a fully funded pension and significant unencumbered assets, which supports its investment-grade rating [29][105] Q&A Session Summary Question: Can you elaborate on industry capacity in 3Q and 4Q? - Management noted a significant reduction in industry capacity, particularly in off-peak periods, which is expected to support profitability [35][36] Question: How is the cabin segmentation being received? - Management indicated that there is strong demand for premium cabins, and they are focused on providing more choices and pricing options [37][41] Question: What are the trends in corporate demand? - Management reported that corporate spending is expected to remain stable or increase, with favorable sectors including banking and technology [62] Question: How is the booking curve shifting? - Management acknowledged that the booking curve has shifted closer in, but there are signs of improvement as consumer confidence returns [108][110] Question: What is the outlook for MRO revenue? - Management expressed optimism about MRO revenue growth, indicating potential for significant increases in the coming years [100][99]

Financial Data and Key Metrics Changes - The company reported a pretax income of $1.8 billion, with earnings of $2.1 per share and an operating margin of 13.2% [7][27] - Free cash flow for the quarter was $700 million, bringing year-to-date free cash flow to $2 billion [7][27] - A 25% increase in the quarterly dividend was announced, reflecting strong cash generation [7][29] Business Line Data and Key Metrics Changes - June revenue increased approximately 1% year-over-year to $15.5 billion, with premium revenue growing 5% [18][19] - Loyalty revenue grew 8%, with significant engagement from millennial and Gen Z segments [19][20] - Cargo revenue increased by 7% year-over-year, while MRO revenue accelerated to 29% growth [21] Market Data and Key Metrics Changes - Overall demand for air travel remains stable compared to last year, with softness primarily in the main cabin during off-peak periods [9][22] - Corporate revenue improved modestly year-over-year, with Delta's share premium at historic highs [21] - International margins have structurally improved, reflecting the success of strategic investments [21] Company Strategy and Development Direction - The company is focused on elevating its airline status, expanding its global footprint, and investing in technology [13][16] - New partnerships, such as the equity stake in WestJet and collaboration with Indigo, are aimed at enhancing international growth potential [15] - The company is adjusting capacity to match demand and managing costs to deliver strong earnings and free cash flow [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the U.S. economy and anticipated improvements in consumer and corporate confidence [10][12] - The company expects earnings per share for the full year to be between $5.25 and $6.25, with free cash flow projected at $3 billion to $4 billion [12][31] - Management noted that while business travel has returned, there is still potential for growth as the economy stabilizes [47][68] Other Important Information - The company is leveraging AI for revenue optimization through partnerships with technology firms [16][60] - The operational performance has been strong despite challenges from severe weather, with a focus on efficiency across operations [27][91] - The company has a fully funded pension and significant unencumbered assets, enhancing its financial stability [28][101] Q&A Session Summary Question: Can you elaborate on industry capacity in 3Q and 4Q? - Management noted a significant reduction in industry capacity, with domestic industry seats down close to 1% by September, indicating a positive adjustment to restore profitability [35][36] Question: How is cabin segmentation being received? - Management confirmed that there is strong demand for premium cabins, and they are focused on providing more choices and pricing options to customers [37][42] Question: What is the outlook for corporate demand post-Labor Day? - Management indicated that most sectors are expected to maintain or increase spending, with banking and technology showing favorable trends [62] Question: How do tariffs impact aircraft deliveries? - Management stated they do not plan on paying tariffs for aircraft deliveries and are encouraged by ongoing discussions in Washington [54] Question: What is the status of AI and revenue management solutions? - The company is currently testing AI solutions on about 3% of its domestic network, aiming for 20% by year-end, and is optimistic about the results [60] Question: How is the booking curve changing? - Management observed that advanced bookings are improving, with the highest cash sales day recorded in July, indicating a positive trend [69][70]

Right. What's changed in the last 6 months that you're looking at full year now coming in lower than where you were expecting things to be in January. Well, given the level of turbulence that we have seen, whe there's geopolitical conflicts going on in multiple regions around the world, you have the impact that we've seen from the tariff battles and all the global trade wars that are being waged.There's been a big pullback over the start of the year starting to wne a little bit but in terms of overall corpo ...

Core Viewpoint - Japan Airlines (JAPSY) is currently identified as a strong value stock, supported by its favorable financial metrics and Zacks Rank of 1 (Strong Buy) [4][7]. Financial Metrics - JAPSY has a Forward P/E ratio of 8.55, significantly lower than the industry average of 11.45, indicating potential undervaluation [4]. - The stock's P/B ratio stands at 1.32, compared to the industry's average P/B of 3.44, further suggesting attractiveness in valuation [5]. - JAPSY's P/CF ratio is 5.11, which is also lower than the industry average of 7.17, reinforcing the notion of being undervalued based on cash flow strength [6]. Historical Performance - Over the past year, JAPSY's Forward P/E has fluctuated between a high of 10.92 and a low of 8.07, with a median of 9.52 [4]. - The P/B ratio has ranged from a high of 1.36 to a low of 1.01, with a median of 1.14 [5]. - For the P/CF ratio, it has seen a high of 5.24 and a low of 3.89, with a median of 4.47 over the past 52 weeks [6]. Investment Outlook - Given the strength of its earnings outlook and the favorable valuation metrics, Japan Airlines is positioned as one of the strongest value stocks in the market [7].

COVID-19 Impact and Response - The COVID-19 pandemic has had an unprecedented impact on commercial aviation, with passenger traffic down approximately 95%[9] - The airline industry is expected to experience a revenue decline of $314 billion (55%) in 2020 due to the pandemic[9] - Gogo expects its Commercial Aviation (CA) sales to be down 60-70% in April due to the impact of COVID-19[12] - Prior to cost reductions, Gogo CA was losing $1 million per day[12] - Gogo has developed flexible action plans with "16 Levers" to manage costs, tied to revenue projections based on various scenarios[20] Financial Performance and Refinancing - Gogo successfully refinanced $162 million in convertible debt and $690 million in senior secured notes, pushing 80% of maturities to 2024[26] - Gogo improved its free cash flow by $163 million, from -$214 million to -$51 million[28] - Cash flow from operating activities improved by $146 million, from -$82 million to $64 million[28] - Adjusted EBITDA improved 104% to $146 million from $71 million in 2018[30] - Net loss improved to -$146 million from -$162 million in 2018[30] Strategic Initiatives - Gogo launched its Gogo 5G project, which is on target for a 2021 launch[29] - Gogo is focused on continuing its drive to positive free cash flow and taking advantage of consolidation in the IFEC and Satellite industries[35]

Core Insights - Delta Air Lines reported record revenue for the June quarter and restored its full-year financial guidance as air travel demand stabilized [1][2] - The company expects earnings per share of $5.25 to $6.25 for fiscal year 2025 [2] Revenue Performance - Quarterly revenue increased by 1% year over year, with international business revenue up 2% and corporate travel demand remaining steady with low-single-digit sales gains [2][3] - Premium business revenue grew by 5% year over year, while loyalty revenue rose by 8% due to co-brand spend growth and card acquisitions [4] Future Outlook - For the September quarter, total revenue is expected to be flat to up 4% compared to the prior year, with unit revenue trends anticipated to improve in the second half of the year [5] - This outlook represents a shift from previous trends observed by Delta and other airlines [5] Previous Context - In the previous earnings report on April 9, Delta indicated that revenue growth for the March quarter was lower than expected and refrained from providing an updated full-year outlook due to macroeconomic uncertainty [6] - Other airlines, including American Airlines, Southwest Airlines, and United Airlines, also expressed concerns about the macroeconomic environment and adjusted their outlooks downward around the same time [7]

Delta Air Lines was the top-performing stock in the S&P 500 Thursday morning after the carrier reported better second-quarter results than analysts had expected and reinstated its full-year outlook. https://t.co/r1BHfRnHc0 ...