Delta Air Strains (DAL) earnings 4Q 21

A Delta Airlines aircraft lands at Kingsford Smith International Airport in Sydney, Australia on October 31, 2021 from Los Angeles.

James D Morgan | Getty Images

Delta Airlines said Thursday the surge in the Omicron variant of Covid-19 will result in a first-quarter loss, but that’s it still expected to make profits this year due to stronger travel demand.

In the fourth quarter, Delta reported its highest revenue since late 2019, thanks in part to strong vacation bookings and more business travel.

Revenue of $9.47 billion beat analysts’ expectations of $9.21 billion. The company has yet to fully recover from this Covid-19 Crisis. Revenue fell 17% from $11.44 billion in the last three months of 2019, just before the start of the coronavirus pandemic.

Delta’s shares rose more than 3% in morning trading after the company reported earnings. United and American each traded more than 4%.

CEO Ed Bastian said omicron is expected to delay the recovery in travel demand by 60 days.

“The next four to six weeks will be difficult,” Bastian said in an interview with CNBC.Squawk box” on Thursday. “What we’re seeing in the booking data is that the President’s weekend forward is looking really robust. Our numbers and bookings continue during this period. People are ready to travel.”

Delta committed $108 million to employee profit sharing, the first in nearly two years.

“Amid ongoing challenges, including one of the most difficult holiday environments we’ve ever encountered, you continue to rise and provide our customers with an unmatched service,” Bastian said in a note to employees on Thursday.

Here’s how Delta has performed versus analysts’ expectations, according to average estimates compiled by Refinitiv:

  • Adjusted earnings per share: 22 cents versus 14 cents expected.
  • Revenue: $9.47 billion versus $9.21 billion expected.

Delta posted a net loss of $408 million in the fourth quarter as fuel and other costs rose, due in part to disruptions from Omicron proliferation. Adjusted for one-time items, Delta reported earnings per share of 22 cents, up from the 14 cents Wall Street was expecting.

For the full year, Delta reported a profit of $280 million, the first in two years, thanks to $4.5 billion in federal aid for airline labor costs during the crisis. In 2020, after travel demand plummeted, Delta posted its biggest loss ever: $12.4 billion.

Delta is the first US airline to report fourth-quarter results and provide a detailed forecast of the variant’s impact on its business. Omicron’s rapid spread has hit theaters and restaurants retailers and Super Market.

Airlines, including Delta, have canceled thousands of flights since Christmas Eve as a surge in Covid infections among crews has led to staff shortages.

Delta said operations have stabilized and that Omicron has canceled just 1% of its flights over the past week.

But omicron will keep bookings under wraps in the short term, the airline said.

“Despite expectations for a loss in the March quarter, we remain positioned to deliver a healthy profit in the June, September and December quarters, leading to meaningful profit in 2022,” said Dan Janki, Delta’s CFO, in the profit announcement.

Investors have largely ignored omicron’s impact on airlines. Delta shares are up 3.9% this year through Wednesday United and American Stocks are up 6.3% and 3%, respectively. the S&P500, down 0.84% ​​in comparison.

Delta expects first-quarter revenue to be 24% to 28% below 2019 levels, with capacity 15% to 17% lower than it was flying three years earlier. It predicted a jump in costs of about 15% from 2019, excluding fuel.

Airlines have compared the results to 2019 to show how far business has recovered from pre-pandemic levels.

Challenges for Delta and other airlines this year include hiring more employees to meet travel demand, a challenge in a tight job market.

United Airlines is scheduled to report results after the market close on Wednesday, followed by American Airlines the next morning.

Delta Air Strains battles with nation’s largest flight attendant union over shortened Covid sick depart

Flight attendants distribute refreshments to a packed Delta Airlines flight departing from Ronald Regan National Airport to MinneapolisSaint Paul International Airport on Friday, May 21, 2021.

Kent Nishimura | Los Angeles Times | Getty Images

Delta Airlines sent a cease and desist letter to the country’s largest cabin crew union after its president criticized the company’s reduced sick leave policy for employees with Covid-19.

Last Thursday, Association of Flight Attendants President Sara Nelson tweeted that the union had received “multiple reports” that Delta was “notifying workers in all work groups that they should come to work with symptoms, even if someone in the household tests positive.” She also said positive workers were told “to come to work after 5 days if the fever is below 100.9, even if they still test positive.”

A day later, Peter Carter, Delta’s Chief Legal Officer, mailed the letter to AFA.

“This information is not only false, it is criminal offense because it casts Delta in a highly negative light by suggesting that Delta asked employees to work while they were ill,” Carter’s letter said. “Such irresponsible behavior is inappropriate, defamatory and must be stopped immediately.”

Nelson, whose union does not represent Delta flight attendants but started one organize drive there in November 2019, defending her comments and saying Delta’s policies confused flight crews.

“Delta’s policy now addresses being asymptomatic before returning to work, which was a serious concern since those CDC policies were originally omitted from Delta’s policy announcement,” she wrote to Delta CEO Tuesday Ed Bastian. “But we still get questions from Delta flight attendants about returning to work with a low-grade fever and the fact that Delta’s current policy only recommends testing before returning to work and doesn’t require testing.”

Delta updated its Covid sick leave policy on Dec. 28 to five days off with wage protection — reduced from 10 days — that doesn’t require employees to spend days in their medical banks. Employees can get two extra days if they test positive again on the fifth day.

“Delta has always looked to science to formulate our policies regarding COVID-19,” a Delta spokesman said Tuesday. “We have sent a cease and desist letter because we believe institutions and leaders must speak carefully, truthfully and factually.”

The airline had asked the Centers for Disease Control and Prevention to halve the recommended isolation time for breakout Covid infections to five days, warning of staff shortages and flight cancellations coming later. JetBlue Airways and other airlines asked for the same change. CDC updated its guidance Dec. 27 after relaxing recommendations for healthcare workers.

Cancellations from staff ill with Covid and a series of winter storms topped 20,000 between Christmas and the first week of the year. United Airlines, which has 10 days of wage protection left for crews with Covid, said Tuesday it would further cut its schedule, with 3,000 workers, about 4% of its US employees, testing positive for the coronavirus.

Frontier Airlines and Spirit Airlines Give employees 10 days of wage protection if they test positive for Covid.

You should purchase a little bit Delta Air Strains now

DigitalOcean: “Look, it’s in the right place. There are tools for developers. I’ve always liked this type of company. I think you’re in good shape. It’s a very high multiple stock, and that’s why it does Decline.”

Vaxart: “You can speculate about it … but it wasn’t a winner and I don’t think that’s going to change.”

Gores Guggenheim: “No. I looked at that. We talked to the people at the investment club about it. We met and said, OK, just one more, one more, one more. I’m not there. I don’t support this group. I just can’t. “

ThredUp: “Commodities. Too many other companies are doing the exact same thing right now. If anything, you’re hoping with ThredUp that Macy’s will spin off its ecommerce and then buy these guys. Otherwise I’ll say … no way out.”

Nokia: “I actually got warm with Nokia. I’ll tell you why I warmed up for it: Because we’ve tried to shut down the Chinese on a lot of different telecom infrastructures and it’s starting to matter because people all over the world are getting a little tired of their repression. The repression tactics don’t go well with the democracies Nokia sells to. I like her.”

Delta Airlines: “Delta is very interesting because I think you should buy some tomorrow and then buy more when things get worse at omicron because Delta is a very good company and, apart from United, has become my preferred airline.”

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CDC provides cruise traces subsequent steps to renew crusing | Arts & Leisure

ORLANDO, Florida – The Centers for Disease Control and Prevention recently issued new cruise ship engineering guidelines to continue the return to sailing.

All major cruise lines departing from U.S. ports are subject to the CDC Conditional Sailing Ordinance, which was enacted last October in lieu of a no-sail order issued in March 2020. This includes setting up a test infrastructure on board and on land as well as performing simulated trips before a line can sail again with paying customers.

However, the cruise industry has asked for more guidance on how to get to these steps. The new guidelines promise to bring cruise ships closer to a return to business.

“CDC is committed to working with the cruise industry and seaport partners to resume cruising when it is safe to do so,” said a statement on the new technical guidelines.

The next steps, which the CDC is now referring to as Step 2A of a four-step plan, is that the cruise lines must have:

– Increase in reporting frequency of COVID-19 cases and diseases from weekly to daily.

– Perform routine tests of all crew members based on the color status of each ship.

– Updated the color coding system to classify ship status related to COVID-19.

– Reduced the time it takes a “red” ship to go “green” from 28 to 14 days based on the availability of onboard tests, routine screening test protocols and daily reports.

– Prepare planning documents for agreements that need to be approved by port authorities and local health authorities to ensure that cruise ships have the necessary infrastructure to cope with a COVID-19 outbreak on their ships that are exposed.

– Prepare a plan and schedule for vaccination of crew and port personnel.

The new guidelines are the first mention of vaccination and do not require the crew or port workers to be vaccinated.

However, in its statement, the CDC suggests that the more potential port workers and passengers are vaccinated, the faster this process will happen.

“The COVID-19 vaccination effort will be critical to the safe resumption of passenger operations,” said the CDC. “As more people become fully vaccinated, the step-by-step approach enables the CDC to incorporate these advances into planning to resume cruise shipping when it is safe to do so. CDC recommends that all eligible port workers and travelers (passengers and crew) receive a COVID-19 vaccine, if one is available to them. “

Cruise ships have been at the center of several deadly outbreaks in the first few months of 2020, including several ships preventing passengers from disembarking. One of the worst was Princess Cruises’ Diamond Princess, which killed 14 people. These issues resulted in both the cruise industry voluntarily closing last March, as well as the CDC sails-no command.

Florida Governor Ron DeSantis held a discussion in Port Canaveral last month with cruise guides from Royal Caribbean, Disney, Norwegian, Carnival, MSC Cruises and other politicians calling on the CDC to take the next steps to reopen the industry. He pointed out that several lines have already started the safe resumption of sailing in other markets around the world. That discussion was based on a letter signed by two Florida senators and other elected officials to the CDC asking for more guidance.

At the beginning of March, the Cruise Lines International Association asked the CDC to completely cancel the conditional sail order by July. However, the CDC replied that it intended to keep the order, which doesn’t expire until November 1, 2021, but would see some changes.

The new guide maintains its 74 points, but means that cruise lines now have at least the next few steps towards the ultimate goal of a full return.

“Driving safely and responsibly during a global pandemic is difficult,” the statement said. “While cruises always pose some risk to the transmission of COVID-19, following the phases of the (conditional sail order) ensures that cruise ship passenger operations are carried out in such a way that crew members, passengers and port staff are protected, especially if new ones emerge COVID -19 worrying variants. “