Category Archives: Delta Airline News

Alaska Airlines employee modest about paying stranded Vancouver woman’s airfare

VANCOUVER (NEWS1130) – You are just supposed to do nice things for people.

That’s a life rule for an Alaska Airlines employee who paid for a local woman to get home after getting the runaround by Delta Airlines.

News1130 first told you about Miriam Thomas, a Vancouver woman, who wanted to publicly thank a lady named Judy for giving her one of her own travel vouchers and also paid out of pocket to get her from Ontario, California to Seattle after Delta Airlines cancelled her return ticket.

Judy Reid says she was just doing what she thought was right.

“You have to help each other. You have to make this a peaceful world. I was raised in a very, very, good, giving, caring family. I’ve always been told to pay it forward. Even if nothing good happens, you’ve done something good.”

Reid says she would do it for anybody. “I just want to do my job at the best of my ability. I don’t even think about it. I just did what I thought anybody would do, I just do that. I like to give and take care of people.

She says the response she’s been getting has been overwhelming.

Alaska Airlines has offered to reimburse Reid, but she has declined.

Alaska Airlines employee pays for Vancouver woman’s airfare after runaround by Delta Airlines

VANCOUVER (NEWS1130) – A Vancouver woman is publicly thanking an Alaska Airlines employee for an act of kindness.

The employee paid out of pocket for Miriam Thomas to get home after being given the runaround by Delta Airlines.

The nightmare started last Sunday when Thomas was flying on Delta from Vancouver to Ontario, California for work.

“The airplane that was coming to take us to Seattle was delayed due to weather. When it arrived it was delayed even longer because of mechanical maintenance issues, they couldn’t get it started. When we finally got up into the air, they couldn’t land in Seattle because of weather.”

Thomas says they were then told they were going to Portland, instead. “We landed in Portland, everyone is getting up, getting their stuff and they say ‘No, actually, everyone sit back down we’re going back to Seattle. We’ll have people waiting for you to help you figure out your connections, we’ll have people to take care of you.’”

She says they landed in Seattle and everyone was given a hotel voucher to spend the night.

Thomas says she made it to Ontario, California just in time for her work meeting.

She says she went to the airport to fly back to Seattle and there was some confusion with her return ticket. “They said ‘Don’t worry. We’ll assign you a seat once you get to the gate, just go because they’re already boarding.’ So, I am rushing through security, I am begging people in the security lineup to let me go ahead of them because the flight is going to take off without me.”

Thomas says she got to the gate and was told her ticket had been cancelled and the doors had to close.

“I went back through security, back to the customer service desk and that’s when it started to get crazy. The Alaska Airlines people were trying to figure out why Delta had cancelled my flight, Delta was trying to figure out what had happened. I was just standing at the desk with my bags seriously hoping I can get on some flight that day.”

She says after an hour of standing at the desk, she found out what happened. “When they had the mechanical maintenance and we ended up in Seattle and had to spend the night in a hotel there, they used the rest of the value of my entire ticket on that rescheduled flight that morning so there was no more money for me to fly home. They didn’t tell me that.”

“The two women I was dealing with from Alaska were comforting me. They were saying ‘Don’t worry, we’re going to figure this out,” she adds. “Finally the woman from Delta comes over and says ‘OK, so, the best we can do is get you on a flight for tomorrow.’ I started to panic, I had nowhere to stay.”

Thomas says that’s when a woman named Judy who works with Alaska Airlines offered her a travel voucher. “Using her voucher, it was so kind of her. She’s filling it out and I thought she just had these free passes. At one point her coworkers were standing behind her saying ‘Judy! Judy! You don’t have to do that.’ And she says ‘You know what, I’m paying it forward, it’s OK.’ At this point I realize something is up and she pulls out her credit card and starts putting in her credit card information.”

That’s when Thomas was told Judy was paying for her ticket to ensure she was going to get home, rather than be put on standby.

“She paid for my ticket, she paid for me to get home. She didn’t know me at all. I was sitting up at the gate waiting for the flight and she came by asking me how I was and offered me money for coffee. I was boarding and I thanked her again and she hugged me. It was amazing. She didn’t need to do that at all, she took care of me.”

“No more Delta if I can help it. I think I am an Alaska Airlines convert,” Thomas says.

A look at Daniel Loeb's investment in Delta Airlines

Airline companies are notorious for burning cash. Serial Entrepreneur Richard Branson once said, “If you want to be a millionaire, start with a billion dollars and launch a new airline”. With falling oil prices, things appear to have been turning around for the sector. Most of the airline stocks have seen good run up over the last few months backed by improved profitability. Many big name investors are now looking for quality names in the sector.

Last quarter, Billionaire Hedge fund manager Daniel Loeb (Trades, Portfolio) initiated a position in Delta Airlines (DAL) by buying 3.85 million shares. This is the first time he has taken a stake in the company.

Delta’s stock price has more than quadrupled over the last two years. Not only is the company benefiting from lower oil prices, it also has one of the best operational record in the sector and is returning cash aggressively to the shareholders. Here’s a look.

Operational Excellence

Delta is one of the best airlines in terms of operational excellence. In 2014, the company had 95 days of no mainline cancellations, a completion factor of 99.8% and an on time rate of 85%, excluding the one time impact of winter storms in 1QFY2014. This excellent operational performance translates into revenue premium as customers are willing to pay for high quality services.

Improving Profitability, Debt Repayment and Share Buy Backs

The company’s operational excellence coupled with the falling crude price is leading to improved profitability. Last quarter, Delta reported a $1 billion in pre-tax profit with EPS of $0.77 which beat consensus of $0.75. The company’s margin expanded by over 400 basis points. Delta is judicially using its cash flow from improved profitability. The company has paid down $2.1 bn in debt last year and its net debt level at year end was $7.3 bn. This translates in $200 mn of annual interest savings. The company is now just two notches away from investment grade rating and plans to further bring down debt levels in the next two years. In addition to bringing down its debt levels, the company also repurchased $1.35 bn in stocks and paid out $251 mn in dividends.

Outlook and Valuation

Going forward, the company expects a significant increase in pretax profit in 2015 from fuel cost savings and the benefits of initiatives it is taking to increase its topline. The company plans to bring down its debt levels to $6 billion by the end of 2016. it also intends to significantly accelerate its capital returns and plans to spend a minimum of $1.5 bn in dividends and buy backs in 2015.

Delta’s shares are trading at 9.76 time FY2015’s consensus EPS estimates. Its forward annual dividend yield is 0.80%. Out of 18 analyst covering the company 16 are bullish and have buy recommendation, and two have hold ratings. Some analysts believe that the company could trade at a multiple in line with SP500 Industrials average. In a research note sent after the company’s investor day presentation last year, Imperial Capital analyst Bob McAdoo commented:

“Investor Day commentary outlines long-term operating goals and DAL’s belief, with which we concur, that the company should trade at multiples similar to other SP Industrials. Within its Investor Day presentation on 12/11/14, Delta outlined its long-term operating and balance sheet goals. The company is targeting annual EPS growth of between 10% and 15%, consistent with consensus growth of 12% for other SP 500 industrial companies. Operating margins should continue to be 11-14%, though we believe lower fuel prices could drive significantly higher operating margins in 2015.”

Given the company’s operational excellence, history of returning cash to shareholders, fuel cost tailwinds and attractive valuation, I recommend buying the stock.

Delta Airlines asks for ban on Gulf carriers

Delta Airlines chief executive said on Wednesday that new airspace limits should be given to Persian Gulf carries.
Richard Anderson said in an interview that the three biggest American airlines have asked President Barack Obama administration to ban Gulf carrier trips from outside its airspace.

United Continental, American Airlines and Delta have been lobbying the US as they believe the country has been supporting Gulf carriers.

The chief executive also accuses the airlines of receiving billions of dollars from the United Arab Emirates and Qatar to subsidiary their cheap flights to the US.

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Delta Airlines asks for ban on Gulf carriers

Delta Airlines chief executive said on Wednesday that new airspace limits should be given to Persian Gulf carries.
Richard Anderson said in an interview that the three biggest American airlines have asked President Barack Obama administration to ban Gulf carrier trips from outside its airspace.

United Continental, American Airlines and Delta have been lobbying the US as they believe the country has been supporting Gulf carriers.

The chief executive also accuses the airlines of receiving billions of dollars from the United Arab Emirates and Qatar to subsidiary their cheap flights to the US.

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Delta Airlines asks for ban on Gulf carriers

Delta Airlines chief executive said on Wednesday that new airspace limits should be given to Persian Gulf carries.
Richard Anderson said in an interview that the three biggest American airlines have asked President Barack Obama administration to ban Gulf carrier trips from outside its airspace.

United Continental, American Airlines and Delta have been lobbying the US as they believe the country has been supporting Gulf carriers.

The chief executive also accuses the airlines of receiving billions of dollars from the United Arab Emirates and Qatar to subsidiary their cheap flights to the US.

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