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Delta (DAL) Hopes for Positive Cash Flow by Spring 2021
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Per a Reuters report, Delta Air Lines’ (DAL - Free Report) CEO Ed Bastian continues to believe that the company will achieve positive cash flow by this spring.
In a New Year note to employees, Bastian stated that the company will likely “experience two distinct phases during the next 12 months.” The first phase will be quite similar to 2020. Meanwhile, “the second phase will begin only when we reach a turning point with widely available vaccinations that spur a significant return to travel, particularly business travel.”
Amid coronavirus-led suppressed air-travel demand, Delta is burning millions of dollars in cash each day. During the third quarter of 2020, the carrier’s daily cash burn averaged $24 million. However, on a positive note, the airline’s cash burn has been improving with effective cost-control measures. The third-quarter cash burn represents an improvement from $43 million daily cash burn in the June quarter. Delta estimates cash burn to average around $14 million per day in the December quarter.
With travel demand at an unprecedented low level, Delta’s revenues declined 76% year over year in the third quarter due to 83% drop in passenger revenues. Looking ahead, Bastian stated, “As difficult as 2020 was, in many ways I expect the next 12 months to be even more challenging.”
Shares of ArcBest, Ryder and Herc Holdings have gained more than 56%, 15% and 37% in a year’s time, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Delta (DAL) Hopes for Positive Cash Flow by Spring 2021
Per a Reuters report, Delta Air Lines’ (DAL - Free Report) CEO Ed Bastian continues to believe that the company will achieve positive cash flow by this spring.
In a New Year note to employees, Bastian stated that the company will likely “experience two distinct phases during the next 12 months.” The first phase will be quite similar to 2020. Meanwhile, “the second phase will begin only when we reach a turning point with widely available vaccinations that spur a significant return to travel, particularly business travel.”
Amid coronavirus-led suppressed air-travel demand, Delta is burning millions of dollars in cash each day. During the third quarter of 2020, the carrier’s daily cash burn averaged $24 million. However, on a positive note, the airline’s cash burn has been improving with effective cost-control measures. The third-quarter cash burn represents an improvement from $43 million daily cash burn in the June quarter. Delta estimates cash burn to average around $14 million per day in the December quarter.
With travel demand at an unprecedented low level, Delta’s revenues declined 76% year over year in the third quarter due to 83% drop in passenger revenues. Looking ahead, Bastian stated, “As difficult as 2020 was, in many ways I expect the next 12 months to be even more challenging.”
Delta Air Lines, Inc. Price
Delta Air Lines, Inc. price | Delta Air Lines, Inc. Quote
Zacks Rank & Key Picks
Delta carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Transportation sector are ArcBest Corp. (ARCB - Free Report) , Ryder System, Inc. (R - Free Report) and Herc Holdings Inc. (HRI - Free Report) . While Ryder carries a Zacks Rank #2 (Buy), ArcBest and Herc Holdings sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest, Ryder and Herc Holdings have gained more than 56%, 15% and 37% in a year’s time, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>