Roberts & Ryan Investments, Inc. hosted an investor call with Delta’s Managing Director of Investor Relations, Andrew Storm, CFA. We would like to thank Andrew for the tremendous overview he gave us on his company.
Talk about an industry that was impacted by COVID… It’s enormously impressive how quickly Delta Air Lines has been able to ramp their business back up. Demand is very strong as customers want to travel again – which creates its own challenges for an industry that was impacted as much as it was.
Delta is currently running at about 85% capacity. Margins are good and will continue to improve as they increase capacity. They’re generating free cash flow and paying down debt. Completion rates are high (only .01% of flights had to be canceled recently) and Delta is committed to providing the premium experience their customers expect. They recently hired 18,000 new employees. How’s that for commitment? In short, business is good and getting better.
Did you know that most airlines don’t hedge fuel pricing anymore? We went through an interesting slide in their presentation on the subject. There are also some good slides on their premium product mix – great margins there.
Delta Air Lines included Roberts & Ryan Investments Inc. as a Co-Manager on their 2020 LaGuardia Airport debt offering. As a result, we were able to support excellent veteran focused organizations – Fisher House Foundation and The Marine Corp Toys For Tots. We’re very grateful for Delta’s continued support and appreciate our partnership.
Delta Air Lines Leadership Committee: Ed Bastian, Steve Sear, Dan Janki, Allison Ausband, John Laughter, Glen Hauenstein, Joanne Smith, Rahul Samant, Peter Carter, Tim Mapes, Henry Ting