Delta Expects Positive Cash Flow in 2021

Discussion in 'Delta Air Lines' started by swamt, Jan 5, 2021.

  1. swamt

    swamt Veteran

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    This is good news. I think all the airlines are expecting a pretty good pick up in passengers flying in 2021, let's all hope they are correct. SWA just kicked off a 4 day fare sale starting as low as $29. Pretty sure we all hope for a very positive 2021. It'll still take years to get back to where we were, IF, we even get there.

    https://finance.yahoo.com/news/delta-dal-hopes-positive-cash-201808382.html
     
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  2. dash8roa

    dash8roa Senior

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    No way in 2021. Virus still running strong and economy is in the dumps.
     
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  3. Kev3188

    Kev3188 Veteran

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    Time'll tell, but DL has managed to remove a huge % of costs out of the system, and is still commanding a yield premium compared to other carriers.
     
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  4. swamt

    swamt Veteran

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    To be honest I just hope for an improvement over 2020. Still not expecting a full year profit for 2021 but I do think the passengers will pick up in summer and then back down as this administration will scare folks again to stay home for all the holidays. Maybe a more realistic goal would be for year 2022???
     
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  5. swamt

    swamt Veteran

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    That's the truth. Delta has done fantastic, meeting or more accurately most likely beating SWA in cost cutting measures. Delta was at 100 million per day and brought that down to SWA's same 12 million per month, however, I assure you Delta was burning way more cash than SWA when all this started, by far way more. Also in the video interview below he also stated that Delta will NOT layoff or furlough any employees for rest of 2021 as Southwest said also. Great news to hear. Especially when United and American are already telling their employees to brace for furloughs coming April 1st.
    I really enjoy listening to Ed's interviews, he is so positive on the outlook of the company and the industry. He does claim to be cash spend neutral by 2nd Q and is very positive of the uptick starting in spring.


    https://www.yahoo.com/finance/video/containing-covid-19-most-important-214110896.html
     
  6. CremaDiLimone

    CremaDiLimone Veteran

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    when i listened to aa's earnings - aa made a big deal about their cash burn number. aa says they are including a daily number for debt principal and buy-outs..i'm guessing the others others are not?

    i'm not sure because i didn't listen to the other earnings calls.
     
  7. Kev3188

    Kev3188 Veteran

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    He’s done a really good job of managing expectations, and keeping an even keel.
     
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  8. swamt

    swamt Veteran

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    Southwest is including the severance and early out packages as they were mostly all at the end or near the end of 2020. Southwest has also added an Extended Leave to folks still at work full time. Now they are offering 1-3 months off at partial pay, (50%) I believe.
    Going into 2021 Southwest is expecting a slight uptick in monthly cash burn as they take on more Maxx's being delivered, more retirements of older a/c and some more additions to flights and new cities added in 2021 1Q & 2Q. If I'm not mistaken they are expecting to go from 12- 15-16 million per month in 1Q 2021.
     

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