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☆ Delta Says Resilient Demand for Travel Boosts Profit but Costs Weigh on First-Quarter Outlook
▼ + stars: | 2023-01-13 | by ( Alison Sider | ) www.wsj.com time to read: 1 min

Delta says it is planning to return to full 2019 flying capacity this summer. Delta Air Lines Inc. said travel demand remained strong through the end of the year, but its shares tumbled Friday as the airline said rising costs could eat into first-quarter profit. Delta said it expects to report adjusted earnings of 15 cents to 40 cents a share in the first quarter, below what some analysts had been anticipating.

☆ Delta Profit Sees Boost From Resilient Travel Demand
▼ + stars: | 2023-01-13 | by ( Alison Sider | ) www.wsj.com time to read: 1 min

Passengers wait in line at the Delta Air Lines terminal at Los Angeles International Airport. Delta Air Lines Inc. said travel demand remained strong through the end of the year, with full flights and pricey tickets continuing to bolster its profit. “As we move into 2023, the industry backdrop remains favorable,” Delta Chief Executive Ed Bastian said.

☆ Delta decided against using ‘fairly old’ backup system during FAA outage
▼ + stars: | 2023-01-13 | by ( Gregory Wallace | ) edition.cnn.com time to read: +2 min

New York CNN —Delta Air Lines has a backup to the federal aviation safety system that failed this week, but the airline decided against using it, CEO Ed Bastian said Friday. Bastian described the Delta’s secondary system as “fairly old backup technology” involving the notices known as NOTAMs distributed by the Federal Aviation Administration alerting pilots of obstacles, closures, and other information. Delta’s backup system collects data from the NOTAM database. But a new labor deal with its pilots union will trim profitability going forward. The main headwind: a new tentative labor agreement with its pilots union, reached a month ago, that will increase pay by 34% over the life of the contract.

☆ Delta Air Lines CEO Ed Bastian: There is still unmet demand for airlines due to the pandemic
▼ + stars: | 2023-01-13 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDelta Air Lines CEO Ed Bastian: There is still unmet demand for airlines due to the pandemicDelta Air Lines CEO Ed Bastian joins 'Squawk Box' to discuss Delta's earnings beat, new pilot contracts in the works, and paying down debt to open up more free cash flow.

☆ Delta Air Lines sales, profits top estimates in strong finish to 2022
▼ + stars: | 2023-01-13 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

Delta Air Lines Airbus A330neo or A330-900 aircraft with neo engine option of the European plane manufacturer, as seen departing from Amsterdam Schiphol AMS EHAM International airport. Delta Air Lines fourth-quarter profit and revenue topped expectations on Friday, but shares fell on the carrier's outlook for the first quarter. But it said unit costs, stripping out fuel, will likely increase 3% to 4% from 2022, including for labor and rebuilding its network. Adjusted revenue: $12.29 billion, excluding refinery sales, vs. $12.23 billion expected. Delta CEO Ed Bastian said in a news release the carrier "rose to the challenges of 2022, delivering industry-leading operational reliability and financial performance."

☆ Stocks making the biggest moves midday: JPMorgan Chase, Wendy's, Virgin Galactic, Delta Air Lines, Tesla and more
▼ + stars: | 2023-01-13 | by ( Samantha Subin | ) www.cnbc.com time to read: +5 min

The New York-based bank said profit jumped 6% from the year earlier period to $11.01 billion, or $3.57 per share. Wells Fargo - The bank stock dipped 0.1% after the firm reported shrinking profits, weighed down by a recent settlement and the need to build up reserves amid a deteriorating economy. Lockheed Martin — The defense stock slipped more than 3% after Goldman Sachs downgraded shares to sell from a neutral rating. Northrop Grumman shares also dove 5% on Goldman's downgrade to a sell from neutral rating. Copa — Shares of the Latin American airline jumped 4.9% following an upgrade to overweight from a neutral rating by analysts at JPMorgan.

☆ No fears on Friday the 13th
▼ + stars: | 2023-01-13 | by ( ) www.reuters.com time to read: +2 min

A look at the day ahead in European and global markets from Anshuman DagaIs there anything spooky about Friday the 13th? Well, certainly not for global equity investors as they cheered U.S. inflation data that showed the Fed's aggressive rate increases are having the desired effect. European equities, perched at nine-month highs, are poised to open on a strong footing on Friday. Fed policymakers expressed relief that inflation continued easing in December and signalled that a rate-hike slowdown was coming. Four American banking giants are forecast to report lower quarterly profits as lenders stockpile rainy-day funds to prepare for an economic slowdown that is battering investment banking.

☆ Morning Bid: Money in the bank
▼ + stars: | 2023-01-13 | by ( ) www.reuters.com time to read: +5 min

Kicking off the fourth-quarter corporate results season in earnest, JPMorgan, Citigroup, Bank of America, Bank of New York Mellon and Wells Fargo are among the countries biggest banks updating on Friday. It will take some twist to puncture the optimism on peak inflation and peak Federal Reserve interest rates, however. Futures markets still see rates topping out below 5% by midyear and pencil in a half point of rate cuts between then and yearend. The yen surged on speculation the Bank of Japan could revise its ultra-loose monetary policy again at next week's policy meeting. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Futures subdued as focus shifts to results from big U.S. banks
▼ + stars: | 2023-01-13 | by ( ) www.reuters.com time to read: +2 min

With the Federal Reserve's aggressive tightening campaign to combat inflation, higher borrowing costs have prompted consumers and businesses to curb their spending, impacting banks' profits as demand for credit slows. "Bank earnings are going to be a big test," said Michael Hewson, chief market analyst at CMC Markets UK. "It will be interesting to see whether they (banks) have made any further provisions for non-performing loans, how they see demand for loans." Delta Air Lines Inc (DAL.N), BlackRock Inc (BLK.N) and UnitedHealth Group Inc (UNH.N) are also scheduled to report fourth-quarter earnings on Friday. ET, Dow e-minis were up 10 points, or 0.03%, S&P 500 e-minis were down 0.5 points, or 0.01%, and Nasdaq 100 e-minis were down 16.5 points, or 0.14%.

☆ Delta CEO urges Washington to increase FAA funding after 'unacceptable' outage
▼ + stars: | 2023-01-13 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

Delta Air Lines CEO Ed Bastian called on Washington to increase funding for the Federal Aviation Administration after an outage of a pilot-alert system that grounded thousands of flights across the U.S. this week. "Over the past 36 hours, the FAA has been conducting a preliminary analysis into the NOTAM system interruption," the FAA said late Thursday. In an interview with CNBC's "Squawk Box" on Friday, Delta's Bastian called the incident "unacceptable." "I don't recall us ever shutting down the national air space due to a similar type of technology outage for several hours." The flight delays and cancellations were the second major air travel disruption in less than a month after bad weather derailed holiday travel late last year.

☆ Stocks making the biggest moves in the premarket: JPMorgan, Virgin Galactic, Tesla and more
▼ + stars: | 2023-01-13 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

Check out the companies making the biggest moves in the premarket:JPMorgan — The bank reported fourth-quarter earnings and revenue before the bell that topped Wall Street expectations. JPMorgan slid nearly 3% in permarket trading. Wells Fargo — The bank slid nearly 4% after reporting shrinking profits, weighted down by a recent settlement and the need to build-up reserves. Salesforce — The software company slid 1.4% in the premarket after being downgraded by Atlantic Equities to neutral from overweight. Deutsche Bank downgraded the shares Friday.

☆ Delta earnings beat estimates as travel demand remains strong
▼ + stars: | 2023-01-13 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +2 min

CHICAGO, Jan 13 (Reuters) - Delta Air Lines Inc (DAL.N) on Friday forecast current-quarter profit below expectations on higher operating costs even as fourth-quarter profit topped Wall Street estimates on the back of robust travel demand. U.S. carriers are enjoying the strongest travel demand since the start of the pandemic, boosted by reopening of closed borders, a strong U.S. dollar and rising corporate travel demand. A worsening economic outlook and rising financial fragility of U.S. households have sparked concerns about consumer spending, but travel demand remains strong and exceeds the pace of flight capacity growth, keeping ticket prices high. The company expected March quarter revenue would be 14%-17% higher than 2019 on capacity that is 1% lower. It expects earnings of 15 cents to 40 cents a share, below a profit of 55 cents a share, expected by analysts in a Refinitiv survey.

JPMorgan Chase & Co (JPM.N) fell 1.2% as it set aside $1.4 billion in anticipation of a mild recession, even after beating quarterly profit estimates. The bank's Chief Executive Jamie Dimon listed a number of uncertainties facing the economy including geopolitical tensions and sticky inflation. Bank of America Corp (BAC.N) reported better-than-expected profit, with CEO Brian Moynihan also acknowledging an "increasingly slowing economic environment". Wells Fargo & Co (WFC.N) and Citigroup Inc (C.N) fell short of quarterly profit estimates, sending their shares down 3.9% and 0.6% respectively. Keeping the pressure off the Dow Jones, UnitedHealth Group Inc (UNH.N) rose 1.9% after beating Wall Street expectations for fourth-quarter profit.

☆ Delta Air Lines' fourth-quarter profit and revenue topped analysts' expectations
▼ + stars: | 2023-01-13 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDelta Air Lines' fourth-quarter profit and revenue topped analysts' expectationsCNBC's Phil Lebeau joins 'Squawk Box' to discuss Delta's earnings report, gains in revenue across all streams, and reaffirming guidance for 2023 after a top and bottom line beat.

☆ Jim Cramer's top 10 things to watch in the market Friday: Banks swoon, Tesla cuts prices
▼ + stars: | 2023-01-13 | by ( Jim Cramer | ) www.cnbc.com time to read: +3 min

Bank of America (BAC) fourth-quarter earnings of 85 cents per share beat estimates; revenue of $24.66 billion did, too. Citigroup (C) says fourth-quarter net income fell by more than 20% — investment banking drag masks higher rate benefit. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

Major carriers such as United Airlines Holdings Inc (UAL.O), American Airlines Group Inc (AAL.O), Delta Air Lines Inc (DAL.N) and Southwest Airlines Co (LUV.N) have rushed to add staff after a faster-than-expected rebound in the U.S. travel market. "Margins are set to take a hit in 2023 as airlines ratify new contracts with labor groups," Cowen analyst Helane Becker said last month. "Delta's recent tentative pilot agreement, assuming it is ratified, could drive incremental unit costs higher by ~2%, and 2%-3% higher for American, Southwest and United," Barclays analyst Brandon Oglenski said on Wednesday. American Airlines on Thursday forecast a higher fourth-quarter profit as the Texas-based carrier benefited from strong demand for travel during the key holiday season. Shares of American Airlines, Delta Air Lines, United Airlines and Southwest Airlines fell between 14% and 30% in 2022 on mass cancellations and economic worries.

WASHINGTON/CHICAGO, Jan 12 (Reuters) - U.S. airline operations returned to normal on Thursday even as the Federal Aviation Administration (FAA) continues to investigate pinpoint the cause of a computer outage that grounded flights nationally and to prevent it from happening again. "FAA operations are back to normal, and we are seeing no unusual delays or cancellations this morning," the FAA said in a tweet. More than 11,300 flights were delayed or canceled on Wednesday in the first national grounding of domestic traffic in about two decades. As of noon Thursday, 1,400 U.S. flights were delayed and 117 were canceled, according to FlightAware, a typical aviation day given current weather issues. Major carriers Delta Air Lines (DAL.N), United Airlines (UAL.O), American Airlines Group Inc (AAL.O) and Southwest Airlines (LUV.N) all were reporting normal operations on Thursday.

☆ Airlines work to move past delays after FAA outage blamed on corrupted file
▼ + stars: | 2023-01-12 | by ( Chantal Da Silva | Chantal Da Silva Is A Breaking News Editor For Nbc News Digital Based In London. | ) www.nbcnews.com time to read: +1 min

Airlines were working to put travel chaos behind them Thursday after a computer outage forced the Federal Aviation Administration to halt all departures nationwide as it raced to resolve the issue. A senior government official said the issue was caused by a corrupted file that affected both the primary and backup systems of the FAA’s Notice to Air Mission system, or NOTAM. The FAA said in a statement it was "continuing a thorough review to determine the root cause" of the NOTAM system outage. "Our preliminary work has traced the outage to a damaged database file. American Airlines and Southwest Airlines did not immediately respond to overnight requests for comment.

☆ American Airlines hikes quarterly revenue, profit estimates after strong fourth quarter
▼ + stars: | 2023-01-12 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

American Airlines shares rose nearly 5% in premarket trading Thursday after the carrier hiked its revenue and profit estimates for the fourth quarter thanks to strong demand and high fares. American estimates revenue rose as much as 17% over 2019, up from a previous forecast of an 11% to 13% increase over the period three years earlier, before the Covid pandemic. American said revenue per seat mile likely climbed 24% in the quarter from 2019, above its prior forecast of 18% to 20%. American is scheduled to report full results on Jan. 26. Its shares were up more than 2% in premarket trading.

☆ Delta curbs employee access to luxury airport lounges as it struggles with crowding
▼ + stars: | 2023-01-12 | by ( Leslie Josephs | ) www.cnbc.com time to read: +5 min

Delta Air Lines plans to curb employee access to its plush and popular airport lounges next month, its latest attempt to ease crowding. "The employee discount on Delta Sky Club memberships also is discontinued," said the memo, which was seen by CNBC. Complimentary seats on planes are a major perk for airline staff, and they aren't just used for vacation. American and United say they aren't planning similar policy changes for their lounges, though carriers occasionally tweak employee travel policies. For example, those carriers paused certain employee travel perks to London over the summer due to congestion.

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☆ Stock futures are flat as investors await big bank earnings
▼ + stars: | 2023-01-12 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

The S&P 500 and Nasdaq Composite gained 0.34% and 0.64%, respectively, during regular trading. Futures tied to the Dow Jones Industrial Average and S&P 500 were flat, while Nasdaq 100 futures dipped 0.10%. Stock futures were flat in overnight trading Thursday as investors braced for big bank earnings to commence. Eight of the 11 S&P 500 sectors finished positive Thursday, led to the upside by 2022 stalwart energy. Earnings season kicks into full gear Friday with results from big bank stocks JPMorgan Chase, Wells Fargo, Citigroup and Bank of America.

[1/2] Passengers wait for the resumption of flights at O’Hare International Airport after the Federal Aviation Administration (FAA) had ordered airlines to pause all domestic departures due to a system outage, in Chicago, Illinois, U.S., January 11, 2023. REUTERS/Jim VondruskaWASHINGTON/CHICAGO, Jan 12 (Reuters) - U.S. airlines said they expect operations to return to normal on Thursday as the Federal Aviation Administration (FAA) scrambles to pinpoint the cause of a computer outage that grounded flights nationally and to prevent it from happening again. More than 11,300 U.S. flights were delayed or cancelled on Wednesday, according to FlightAware, in the first national grounding of domestic traffic in about two decades. Major carriers such as Delta Air Lines (DAL.N), United Airlines (UAL.O) and Southwest Airlines (LUV.N) said they expected normal operations on Thursday. "The health of that agency and its ability to deliver on its mission really is important," he said in an interview.

"At this time, we do not believe the cause is related to the FAA outage experienced earlier today." Share this -Link copiedNearly half of Southwest flights delayed just weeks after mass cancellations Nearly half of Southwest Airlines flights were delayed as of about 11:15 a.m. Share this -Link copiedMore than 540 Delta flights delayed, 14 canceled More than 540 Delta flights were delayed as of 9:13 a.m. ET, the airline had three flights canceled and 208 flights delayed, amounting to 21% of its overall flights, according to FlightAware. Alaska Airlines had 11 flights canceled and 149 flights delayed, also amounting to 21% of its overall flights, FlightAware noted as of 8:53 a.m.

FAA officials said a preliminary review traced the outage to a damaged database file, but added there was no evidence of a cyberattack and the investigation was continuing. FAA officials said they were working to "further pinpoint the causes" so the problem can be avoided in the future. One issue airlines are facing is trying to get planes in and out of crowded gates, which is causing further delays. He described confusion as airline employees and many passengers were initially unaware of the FAA's moves and flight delays. The U.S. Travel Association, which represents the travel industry including airlines, called the FAA system failure "catastrophic."

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