Delta Air Lines Inc. Q4 2020 earnings call dated Jan. 14, 2021.Corporate Participants: Jill Greer â Vice President â Investor Relations Ed Bastian â Chief Executive Officer Glen Hauenstein â President Gary Chase â Co-Chief Financial Officer, Senior Vice President â Business Development and Financial Planning Leader bios, trademarks & slogans, stats & facts. Thank you so much for the time. In response, we will focus on making sure that our sellable capacity largely aligns with the emergence — emerging demand environment. If you look in some of the reconciliations in the back of the release, you’ll see that those are offset dollar by — a dollar for dollar rather on the cost side. Great. Hi, yes. Let me take a shot at it. Well, clearly, the size of Atlanta is relative to the size of demand in the United States. Their corporate travel being back by that. Our next question will come from Ravi Shanker of Morgan Stanley. And then how many of those are since last week, do you know? As you are aware, we are the largest carrier of corporate travel amongst the U.S. carriers. And a question for Gary. Learn all about Delta Air Lines. Hey, good morning everyone. So it’s not a clear line and there is a lot that has to go into that. This should enable a sustained recovery to begin in the second half of 2021 with the return to profitability this summer. That cost focus will be a key driver of profitability later in the year when demand returns. Hey, Ed. I mentioned during this script, Kelly, that we just were awarded the seventh best employer by Glassdoor. But what about clicks or looks, stopping short of actual bookings, but is there any data like that, that you’re tracking analytics on the website, something like that, that provides a basis for your recovery outlook beyond Q1 and sort of saying that you have a good shot of P&L breakeven in Q3 or you’re just hopeful that that’s going to be the case. Als Sprecher war er ab Mitte der 1990er-Jahre die deutsche Standardstimme ⦠A number, not a huge number, but a number. Thank you for taking the questions. Just curious how you’re thinking about that. Delta Dawn, what's that flower you We are happy and really are indifferent whether or not people who are booking or using points or whether or not they’re using actual dollars or whether they are using e-credits. And we have made it through this year without furloughing any employees. We restored the pay in terms of some of the pay cuts, the voluntary pay cuts that our employees took last year. Let me touch on the fourth quarter and 2020 and then I’ll turn to the outlook for costs in the balance sheet as we head into ’21. Maybe one on the cost structure, of course this pandemic has created a lot of pain for the industry, but I don’t want to glaze over that. Corporate revenue was about three points higher than the September quarter with small and medium accounts which make up half of our corporate revenues recovering five points faster than large corporate [Phonetic]. We need to stay flexible and maintain our discipline in order to position the Company for the return to profitability Ed mentioned, as we expect continued choppiness in demand in the early part of the year. Obviously, it’s something that we — Delta endorse, I know our industry similarly endorses. So they’re all wrapped into the economics of the refinery, but you should expect those to start trending down as our consumption picks back up and we’re exchanging more for our own use. Fourth, we will drive the competitive cost structure. Thank you for that. I was just wondering about the phasing, of the three phases that Glen outlined earlier. Good morning, everyone and thanks for joining us for our December quarter and full year 2020 earnings call. It’s hard to speculate it now, it’s just only a couple of weeks into the year, but I’m hopeful that we’ll be paying it. Yeah. Because of your dedication, we will emerge from the crisis stronger and more resilient than ever. Well, I think there is always opportunity to be above where we were in 2019. Well, I think that the Delta Difference has never been more pronounced than it is right now. Our goal is to produce and sustain non-fuel unit cost below 2019 levels by the fourth quarter. We know that it’s been important, not the only, but one of the important reasons why Delta has been able to earn — continue to earn an even higher revenue premium during this past year than we’ve historically had and so we want to be very, very careful as to how we make that decision. That’s about being very thoughtful, about better leveraging the system as we start to rebuild. And if you look at our share of corporate travel that is traveling, we have experienced the highest levels in our history. I’ve said many times, it could be 10% to 20% lower over a period as it substituted and complemented. Again, thank you everybody for your time this morning. Okay. And while we talk about simplifying the fleet, we’ve taken some big steps in that direction. We have to be very mindful and balance some of those needs with the realities of the business because we are determined here to turn the profit equation around and to be printing these releases with black ink this year. And that number has been pretty consistent throughout the entire year. And that will continue to be important as we move forward. So thanks again for joining us today and we look forward to speaking with you soon. Log dich ein um diese Funktion zu nutzen. So my first question is actually is about your comments earlier about seeing a cash recovery before revenue recovery, and to trying to square that with the 65% of your e-tailer vouchers. But that’s going to be driven by demand not by cost. I’m wondering if there’s been a discussion at the Board level about goal posts or guideposts for profitability before we kind of go back to renewing the fleet in earnest? We have some time. However, we will begin reducing those expenses by paying down debt this year. DeltaCad is a simple CAD program for Windows and Mac. Okay, you could just adjust the awards, the availability and things like that too, right if there is —. In response to the second phase, our middle seats will be a very powerful tool for us, one we can use to add capacity in a very cost efficient way, generating a meaningful margin tailwind. So we’re hoping that all of the above happens. What we’ve said is that when the demand returns, which is that next inflection point, that will inform our decision around what to do with the middle seats. This will be important in restoring confidence in long-haul international travel as vaccine rollouts continue. The Delta Difference has never been more important, and I’d like to thank the Delta team for delivering for each other and for our customers amid the industry’s most challenging environment ever. So, I am very comfortable with where we sit. Okay and just to follow-up with a separate question, should we expect to see a deal with Boeing this year for a 737 MAX order? Good morning everyone. 667 likes. Got it. Sorry, about that, Ed. In fact, if we wanted to continue to run the same cost structure and forego some of those expenses, you could see our cash burn coming down, in a relatively meaningful level in the first quarter as well. The phenomenon that you’re seeing in the third party sales is anything we produce and do not exchange for jet fuel we sell to third parties. Our American Express remuneration in 2020 was nearly $3 billion, down only 30% on a year-over-year basis. Thanks. And maybe just a little bit on our redemptions for the e-credits, we are running in the low to mid-teens right now in terms of total revenues with e-credits coming back and we expect that to stay below 20 as we move towards this next period here. We’ve not made a decision beyond the end of March, relative to our — when to unblock the middle seats. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000, © 2020 AlphaStreet Inc. All Rights Reserved, Key highlights from Autodesk (ADSK) Q4 2021 earnings results, Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%, Virgin Galactic stock tanks on delayed test flight. Let’s move now to capital, the balance sheet and liquidity. Immer freundlich und bedacht ist er der unumstrittene On January 3rd, we had a $50 million ticket revenue date and carried more than 250,000 customers. In fact, American Express has shared its spending on our co-brand card portfolio has performed in line to slightly better than their overall card portfolio spend in 2020. I do think it’s important to point out that those sales have no margin. As we go through this fleet transition, our premium seats as a percent of our total seats continue to rise. I’ll just note, if you take a look at the second half of 2020, it’s quite a bit better than that. The application has a simple interface with on-screen instructions for the user. So, the DOT has not made it clear what the rules are with respect to those slots, but I think it’s suffice it to say that we are deserving a DTA without question because of our market position. Jill Greer — Vice President – Investor Relations, Gary Chase — Co-Chief Financial Officer, Senior Vice President – Business Development and Financial Planning, Peter Carter — Executive Vice President and Chief Legal Officer and Corporate Secretary, Tim Mapes — Senior Vice President and Chief Marketing & Communications Officer, Savanthi Syth — Raymond James & Associates — Analyst, Andrew Didora — Bank of America Merrill Lynch — Analyst, Catherine O’Brien — Goldman Sachs — Analyst, Duane Pfennigwerth — Evercore ISI — Analyst, Joseph DeNardi — Stifel Financial Corp — Analyst, Greg Konrad — Jefferies & Company, Inc — Analyst, Michael Linenberg — Deutsche Bank — Analyst, Alison Sider — The Wall Street Journal — Analyst, Claire Bushey — Financial Times — Analyst, David Koenig — Associated Press — Analyst, Kelly Yamanouchi — Atlanta Journal Constitution — Analyst, David Slotnick — Business Insider — Analyst. Why don’t you — Are you referring to the third party sales, is that what you are asking? After the analyst Q&A, we’ll move to our media questions, after which Ed will provide some closing remarks. Makes sense. No, I think we’re very confident in our products and services and we compete well against both those carriers individually and I’m sure we’ll compete very well against them together. B, can you talk to us about the timing of this decision. We’re going to be ramping — we have been ramping it up and talking about it. Again, I’m sorry, it’s hard to hear the question. Well, Andrew, I think we’re a little early yet in terms of thinking about the long-term capex picture. Our revenues were $3.5 billion for the fourth quarter which was 30% of last year’s levels. This is a testament to customers’ willingness to pay a premium for the Delta difference [Phonetic]. We’ll continue to listen to our customers and put them first in order to further enhance their experience on Delta, increase their loyalty, and drive affinity towards our brand. From talking to American Express, good partners there, it’s clear that people place great value on their loyalty points with Delta and like to see the values grow over time and so while they’ve been in the pandemic, we’ve seen redemptions down for points because flying levels are down, but they haven’t stopped the spending on the card. That customer preference and loyalty is what underlies our revenue premium and has never been stronger. When I think about what we’re doing here, and this gets to your second question, there are kind of two big things that I talk about or that we all talk about internally as we think about this effort that we’re embarking on. Good morning, everyone and welcome to the Delta Air Lines December Quarter and Full Year 2020 Financial Results Conference Call. Certainly. Das Dawn-Phänomen ist weit verbreitet und es ist vor allem in der Pubertät der Grund für hohe Nüchternwerte. März 1947 in Göttingen; â 1. And what do you need to see in order to feel more comfortable in placing the new aircraft orders? Ed, you talked about I guess the corporate travel environment. It won’t be 75% and maybe higher maybe lower, I don’t know. I wanted to ask about profit sharing with no profit sharing next month from 2020 results, I was wondering what impact you think that may have on employees and satisfaction and also wondering if you think there is a possibility of profit sharing a year from now? And we have room to rebuild our network from current levels at low incremental cost, approximately 40% to 50% of our December quarter non-fuel CASM. [Operator Instructions] And we’ll go first to Alison Sider of The Wall Street Journal. Certainly and that will come from David Slotnick of Business Insider. So while 2020 was a difficult year and challenges will continue in 2021, I’m encouraged at some of the data that we’re seeing, and I’m proud of the foundation that we’ve built at Delta. This Company is well positioned to emerge in a stronger, competitive position from this crisis and will continue to lead our industry in the years ahead. We learned from that for Thanksgiving. I’d also like to thank Ed and Glen and the members of the Delta Leadership Committee, all of whom are on this call for their involvement as we turn the page on 2020 and optimistically look at 2021. The goal we have at the Board is very much what we said to you, is that we get to — our goal is to get through a cash breakeven position for the second quarter and return to profitability starting in the third quarter. That’s very helpful. The Order of Flemish Militants (Dutch: Vlaamse Militanten Orde or VMO) â originally the Flemish Militants Organisation (Vlaamse Militanten Organisatie) â was a Flemish nationalist activist group in Belgium defending far-right interests by propaganda and political action. No, we’re not — we’re not using that as a guide for capacity levels. With approximately $17 billion of liquidity, our adjusted net debt however only increased $8 billion year-over-year and we don’t expect that net debt will increase going forward. Stimme) (Youko Matsuoka) Angela Wiederhut Alvida (2. Glassdoor is an entirely employee-driven acknowledgment. Jennifer Weiß â deutsche Stimme von Sinon aus Sword Art Online Gemeinsam mit peppermint anime präsentieren wir euch auf der AnimagiC 2018 nicht nur die japanischen Macher des Mega-Hits Sword Art Online , sondern auch gleich drei deutsche Stimmen â unter ihnen Jennifer Weiß, die seit der zweiten Staffel der Gun Gale Online- Scharfschützin Sinon ihre Stimme ⦠In fact, in the December quarter, our all-in unit costs were down 4.5% year-over-year despite flown capacity being down 44%. Hey, Ed, I just tried to go back on the mandatory COVID test for international arrivals. With that goal in sight, we’re turning our focus to how we will balance reinvesting in the business, while reducing our debt levels. Well, there will be some, David. Re-thinking as we — as we speak what the — not just the current environment but the future environment is. We have, Katie, I’m not sure we’re going to get into some of the specifics. If I can just follow-up with the question on the supply side, clearly you guys are leaders from a corporate travel standpoint, but we have seen some of your LCC competitors start to and maybe try and make some inroads as that traffic comes back. Our December quarter pre-tax loss of $2.1 billion is about $500 million better than the September quarter given the revenue improvement Glen just discussed combined with strong cost discipline. So, Ed or Gary, could you talk to how as we move through these actual cases, how and when discretionary cost may come back in the system? And we wanted to give some guidepost that to the leverage that we do expect going forward, before the — excuse me, 40% to 50% of December capacity comes in. In Horizon Forbidden West wird die Geschichte 2021 weitererzählt werden. That’s when our revenue is going to be covering our expenses and that is something that we expect will lag a little bit behind the build in bookings and will be there by the summer, as we’ve mentioned. We expect that to occur in the second half of ’21 and as a result — and result in a sustained improvement in demand and yields with progression in cash generation as the booking curve normalizes. Ed and Glen, I know you both said, no decision has been made yet but Glen, your comment about in the second phase is the middle seats will be a very powerful tool. I am incredibly grateful for the efforts of the entire Delta team in managing through the challenging year that we faced. So as we grow, we’ll obviously get leverage there and we have pockets of opportunity — we have pockets of opportunity in terms of better utilization of just the overall system. As a really early perspective, bookings are coming in for later in the year, are these majority new bookings or maybe there is a higher percentage of those vouchers that are corporate and you expect that early part of it probably be leisure. Is there a current figure on that and any changes in cabin policies? Just in closing, I think you can all appreciate that 2020 was a difficult year, but we’re on a recovery path. Our premium seat strategy is holding up well. And that really manifest itself in the record net promoter score we had in the December time period. So I think we’re seeing not only the higher share of corporate demand we’ve ever had although albeit on depressed levels, but a real differentiator when customers are shopping, they want to fly Delta versus some of our competitors. As you probably know, we extensively survey our corporate customers, our large corporate customers on a — on a quarterly basis, in addition to just being with them on a weekly basis as to their thoughts on the return of travel. For example, our January and February domestic scheduled seats will be down 3% to 6% versus the non-holiday period in November. When will you decide whether they are blocked beyond March 30th? The numbers we’re comparing are 2019 travel volumes, yes. And is the thinking or the logic and the focus really more on CASM recovery and margin recovery before necessarily capacity recovery? But you’re getting paid for it and your NPS scores are as you mentioned are in an all-time high. To get out in the fourth quarter to the point where our all-in unit costs are 4.5% lower quarter-over-quarter despite having over 40% less capacity to work with, speaks to the ingenuity of the team. Hi, good morning everyone. We have in addition to middle seats, we have a lot of other seats still empty on our planes and confidence in travel relative to COVID and vaccine deployment. Hey, good morning, everyone. We’ve been saying all along that this recovery wouldn’t follow a straight line, with demand choppiness as COVID infections rose across the country and government and public health officials issued travel advisories. Okay. So, I’m sorry, I have to pass. Thanks, Glen and good morning everyone. So does Delta have a forecast for when they’ll return to 2019 travel levels? And I think it’s our ability to provide the right products and services for non-corporates as well with the right sell-up opportunity, so that we can match their preferences to our products and services. Übersetzung: Was singt Ed Sheeran im Songtext zu seiner neue Single "Afterglow" auf Deutsch? I am not sure I quite heard the non — was it discretionary or non-discretionary expenses that you were asking? Okay. And with that, I’ll turn the call over to Gary. Our emphasis on taking care of our people is reflected in Delta’s recognition this week by Glassdoor as one of the best places to work for the fifth year in a row, coming in seventh overall on a list of 100 large companies, the highest rank Delta has ever received; all in the face of a pandemic. Turning to 2021, we expect the March quarter to look similar to the December quarter with the March quarter revenues at 35% to 40% of March quarter 2019 levels and our cash burn for the quarter holding at $10 million to $15 million per day. So it had nothing to do with pilot staffing at all. But, one of the things that Delta has been talking about during this crisis, which makes a lot of sense is getting to 2019 CASM on a capacity footprint that’s smaller. So we’ve not made any decisions to unblock them post March 30th. I also have questions on your middle seat policy. Well, thank you all for the time. And despite having meaningfully less inventory for sale, given our middle seat block, we outperformed on passenger revenue generation in the first nine months of the year. Jamie, I think what I would say is it’s obviously less than today. But I think that’s our goal and our mission is to stay ahead of that and provide it through a pull, people want to fly Delta and as opposed to a push, which is, hey we can lower fares and try and move [Phonetic] up the sides for the bottom of this. We accelerated our fleet transformation by retiring aircraft with relatively short remaining lives and simplified our fleet by eliminating two entire families, while increasing our gauge. In normal times what percentage of international revenue is made up of trips that lasts fewer than four or five days? Hey, good morning everyone and thanks for taking my question. We’re very focused on innovation, which is allowing us not only to enhance the customer experience and drive efficiency, but also to tackle the big challenges that still lie ahead for us. So I guess the question is longer term, how are you thinking about running less full airplanes as an opportunity to differentiate yourself for that premium traveler? Leisure markets in some destinations are the best performers in our network. Hey, good morning everybody. Your question, I’m sorry was a bit garbled. We will be ready to serve our corporate customers by leveraging the strongest domestic and international networks, rebuilding focus cities and point to point flying based on customer needs and by capitalizing on our efforts to always put the customer experience at the center of what we do. If youâd like to learn more about Delta Air Lines, youâre certainly in the right place. Ja, ich habe die Datenschutzerklärung gelesen und stimme dieser zu. And in fact, we still have over 10,000 employees in the month of January out on unpaid leaves. But we know that’s consuming an important part of overall business travel. And now we will go to Joseph DeNardi of Stifel. In a scenario where corporate traffic is impaired 15% to 20%, what does that mean for your earnings power? The second thing we say is leverage the build, and that’s really where the incremental thought process comes. Some of that we can measure, others that we can’t say, because they are not under contracts with us. Okay, great. This is really available to everybody at reasonable prices. Both of these were the highest since the onset of the pandemic. This morning we reported pre-tax losses of $2.1 billion for the December quarter and $9 billion for the full year, capping the toughest year in Delta’s history. And my second question, just — it’s clear that you’re not seeing any elongation of the booking curve yet at this stage. Our December quarter results reflect the challenges that the pandemic has brought not just to Delta, but to the entire airline industry. So the team did a very, very good job and that issue was pretty much over with by the 26th, 27th. He keeps a third of his hair in a braid while leaving the rest in a messy, spiky hairstyle. That will result in our March quarter sellable capacity being approximately 55% lower relative to the same period in 2019, consistent with the expected 60% to 65% revenue decline. Any opinion expressed in the transcript does not necessarily reflect the views of AlphaStreet, Inc. © COPYRIGHT 2020, AlphaStreet, Inc. All rights reserved. Well, thanks, Tim. Our customers recognize the outstanding service our people provide with an all-time high December net promoter score of 71, up 20 points year-over-year and by Business Travel News naming Delta, the top airline for corporate travelers for the tenth year in a row. Thanks. Has — I think as those travel restriction ease, do you see the need to maybe stimulate more demand with price or do you think there is enough pent-up demand in the network that load factors in the driver. Are those slots that — from what you know, are those slots that only new entrants can bid on? We have some bit of time, but it’s going to be informed by customer sentiment, demand. We missed you — the question, the start of your question, Hunter. As a result, roughly one third of our domestic capacity is currently deployed into leisure destinations. Absolutely, corporate looks are actually doing quite well. Thank you, Glen. Grill Drauf Los, Hamburg-Mitte, Germany. Log dich ein oder registriere dich kostenlos, Nathan Evans - Wellerman (Sea Shanty) Songtext, Nathan Evans, 220 Kid & Billen Ted - Wellerman Songtext. Are you surprised by that? As that happens, we expect to see an extension of the booking curve, resulting in a cash led recovery with revenue recovery to follow. But, we have maintained the same level of cash burn to get ready for the spring. We are a smaller airline with a 200 fewer planes today. Thanks for taking the questions.
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