Delta's underfunded pension liability dropped 30% in 2013---article

[General Lee]

Forget Netflix, Delta Has Most Analyst Love for 2014
By Dan Freed - 12/31/13 - 11:20 AM EST
Tickers in this article: DAL NFLX

NEW YORK (TheStreet) -- Netflix may be the best performing S&P 500 stock in 2013, but Delta Airlines is the one analysts favor for 2014.

All 18 analysts who follow Delta have "buy" recommendations, garnering Delta a score of 4.94 out of 5 on Bloomberg's ranking system. Fifteen of those analysts have 12-month price targets, with the average of those 15 being $33.97. Delta shares were trading at $27.49 for a gain of 1.08% on the day, shortly after Tuesday's open on the final trading day of 2013. That means if Delta were to enter January at its current level and hit analysts' average target by the end of the coming year it would translate to a gain of 23.57% for 2014 excluding dividends.

"Despite DAL's relatively better momentum and lower risk, shares trade at a discount to the sector," argued Bank of America analyst Glenn Engel in a Dec. 17 report.

"Delta is on pace to repurchase $500mn a year in stock, triple initial guidance, and capital returns could go higher when DAL achieves $7bn net debt target in 2015," the report continues, adding that the airline's "underfunded pension liability dropped 30% in 2013 to around $10bn."

Delta shares have returned more than 130% in 2013, fourth best among S&P 500 stocks. By contrast, Netflix, the best performer with shares up some 294% on the year, received only a 2.90 rating from analysts, the 28th worst in the S&P 500.




Where's Redflyer? Oh yeah, he can't debate the facts....



Bye Bye---General Lee

 

[Mercyful Fate]

Its the 88 717's for sure.

 

[BILL LUMBERG]

This report means nothing.....we've all seen what stock buybacks do. Makes executives rich with their options and leaves nothing for the employees instead of using that money to reinvest into the infrastructure. Someday soon we need to replace a lot of old jets and nobody seems to put that on the horizon.

 

[redflyer65]

I have the General blocked, but let me take a stab at it.....

I'll go with "Please look at me, I'm pretty"

Close?

 

[Dash Power]

I have the General blocked, but let me take a stab at it.....

I'll go with "Please look at me, I'm pretty"

Close?

LOL!

Nailed it.

 

[Freebrd]

LOL!

Nailed it.

....between chocolate sundaes. :nuts:

 

[N1atEcon]

As your Baken crude burns outside of Fargo ND. I see the fed said no more shippping that stuff on the cheap.

 

[BILL LUMBERG]

As your Baken crude burns outside of Fargo ND. I see the fed said no more shippping that stuff on the cheap.

Who says it's ours? Source?

 

[General Lee]

As your Baken crude burns outside of Fargo ND. I see the fed said no more shippping that stuff on the cheap.

That has actually lowered fuel prices for ALL airlines on the East Coast. Looks like you will get furloughed now. Oh well...

Bye Bye---General Lee

 

[Remington]

Newsflash: Deltas pensions are underfunded by 70%.

 

[General Lee]

Newsflash: Deltas pensions are underfunded by 70%.

No, that's not what they said. They said the underfunded part had 30% of it erased last year, a huge deal. A few more years like 2013 and a huge chunk of the debt and pension liability could be erased. The airline is also super profitable compared to peers. Maybe you should read the pertinent paragraph again:


"Delta is on pace to repurchase $500mn a year in stock, triple initial guidance, and capital returns could go higher when DAL achieves $7bn net debt target in 2015," the report continues, adding that the airline's "underfunded pension liability dropped 30% in 2013 to around $10bn."



Bye Bye---General Lee

 

[Mercyful Fate]

No, that's not what they said. They said the underfunded part had 30% of it erased last year, a huge deal. A few more years like 2013 and a huge chunk of the debt and pension liability could be erased. The airline is also super profitable compared to peers. Maybe you should read the pertinent paragraph again:


"Delta is on pace to repurchase $500mn a year in stock, triple initial guidance, and capital returns could go higher when DAL achieves $7bn net debt target in 2015," the report continues, adding that the airline's "underfunded pension liability dropped 30% in 2013 to around $10bn."



Bye Bye---General Lee

It is the 88 717's!

 

[SIG600]

Stock buy backs mean nothing more than bonuses for the front office. Money better spent on recapitalizing your fleet. Keep kicking that can down the road, that's future managements problem after current management cash their checks and run while the get the gettins' good.

 

[General Lee]

Stock buy backs mean nothing more than bonuses for the front office. Money better spent on recapitalizing your fleet. Keep kicking that can down the road, that's future managements problem after current management cash their checks and run while the get the gettins' good.

Uhhhh, maybe you missed the other parts, like bringing the debt down to $7B by 2015 (it was $17B in 09), and reducing the pension liability by 30% in one year. As far as recapitalizing the fleet, an order for 30 A321s and 10 A330s was recently made, plus those 787s are still supposedly coming around 2020. Currently 100 new 737-900ERs are coming at a few per month, along with 717s from AirTran/SWA. The stock has risen dramatically over 2013, and management was going to do well regardless. Anyone with stock has done well. I'm still holding 3600 shares (options) given at the merger. I know guys who sold immediately at around $5 a share. Oooooops.



Bye Bye----General Lee

 

[Freebrd]

after current management cash their checks and run while the get the gettins' good.

You mean like Leo & the Top 25 managers did exactly that years ago?

 

[dicko]

IRONY - noun ˈaɪrəni ;

- A pilot gloating about the health of an airlines pension plan. (Notes - History can be such a fuker.)

Oxford English Dictionary.

 

[General Lee]

IRONY - noun ˈaɪrəni ;

- A pilot gloating about the health of an airlines pension plan. (Notes - History can be such a fuker.)

Oxford English Dictionary.

You obviously went to Oxnard Community College. I was responding to Redflyer's ridiculous claims that the pension underfunding at this airline was insurmountable. This article seems to state otherwise.


Bye Bye---General Lee

 

[ASAFLY2]

Does anybody have the web address for the new Delta chitchat forum?

 

[dicko]

You obviously went to Oxnard Community College. I was responding to Redflyer's ridiculous claims that the pension underfunding at this airline was insurmountable. This article seems to state otherwise.


Bye Bye---General Lee

My education was conducted at the gnarled hand of my Finnish au pair. She had a club foot and a lisp. In her spare time she knitted me horse hair shirts and cooked boutique meth. Oxnard community college rejected my application. It's been a special kind of shame that I've had to live with. Yet, I carry on.

It's difficult to tell whether you're obtuse, or you're just not very bright. My guess is that both apply.

 

[General Lee]

My education was conducted at the gnarled hand of my Finnish au pair. She had a club foot and a lisp. In her spare time she knitted me horse hair shirts and cooked boutique meth. Oxnard community college rejected my application. It's been a special kind of shame that I've had to live with. Yet, I carry on.

It's difficult to tell whether you're obtuse, or you're just not very bright. My guess is that both apply.

Wow Professor Dumbledoor, you're a genius. But, you don't trust the media, or any article stating that DL did well enough last year to help pay down a large chunk of pension deficit. Nah, you don't believe it, you're still playing with your toy telescope searching for Uranus. Good luck with that Dicko!


Bye Bye---General Lee