[On :freetrade:] Delta Air Lines - DLA

One of the companies I really want to get added to the stock list.

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It’s the biggest airline company in the world in terms of airplane fleet. Warren Buffet just bought 1 million shares of this company.

One of the biggest airlines in the world…
The price right now is a steal and great dividend

There is an existing thread here you can vote on:

Has a date been given for when this will be ADDED???

No date yet.

Next few weeks is the timeline for the next batch of stocks to be added. Fractionals will be coming first.

If we’re lucky it’ll be added after it goes through chapter 11. How long can Delta survive if almost all international and domestic US air traffic is shut down?

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Delta on Friday said it secured a $2.6 billion-term loan this week and has drawn down $2.3 billion of it. The airline also borrowed about $3 billion from a 2018 revolving loan.

“To put this in context, despite all the self-help measures we are taking, we are currently burning roughly $50 million in cash each day,” Bastian said in a message to Delta employees.

Buffett bought Delta at $46.40 - for $45.3mm in February only to sell 13mm shares this week at $24.19 for $314mm, says Barron’s. They also gold rid of $74.3mm of Southwest Air.

Warren Buffett’s Berkshire Hathaway disclosed that it sold large blocks of stock in Delta Air Lines and Southwest Airlines.

Berkshire (ticker: BRKB ) subsidiaries sold 13 million Delta (DAL) shares over Wednesday and Thursday for a total of $314.2 million, a per-share average of $24.19 each. Berkshire now has overall ownership of 58.9 million Delta shares, according to a form it filed with the Securities and Exchange Commission.

Berkshire didn’t immediately respond to a request for comment on the stock sales.

Berkshire indicated in both forms that it now owns less than 10% of each airline.

Buffett’s firm also sold 2.3 million Southwest shares (LUV) over the same two days for a total of $74.3 million, an average price of $32.22 each. Berkshire now owns 51.3 million Southwest shares, according to a second SEC filing.

A little more than a month ago, Berkshire was buying Delta stock, paying $45.3 million on Feb. 27 for a total of 976,507 shares, an average per-share price of $46.40.

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He sold small portions of both companies to get under the 10% ownership rule relating to US reporting.

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Highly discounted currently, would be great to have this in!

really want this T_T we got no airlines available, the symbol is DAL tho :slight_smile:

Time to break out the abacus

“With the significant impact of COVID-19 on Delta’s revenue, we were burning $100 million per day at the end of March. Through our decisive actions, we expect that cash burn to moderate to approximately $50 million per day by the end of the June quarter,” said Paul Jacobson, Delta’s chief financial officer. “The decade of work we put into the balance sheet to lower debt and build unencumbered assets has been critical to our success in raising capital and we expect to end the June quarter with approximately $10 billion in liquidity.”

They’ve now sold their entire stake in all US airlines, probably because they anticipate bankruptcies.

I honestly wouldn’t invest in airlines right now even at these low prices, it’s normally a fragile industry with low margins, and they’re going to have a very difficult time for years - the most likely outcome for most airlines is to go through restructuring and bankruptcy to shed a lot of debt, so that they can keep running once this is over. This will wipe out any shareholders.

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Personally I’ll be avoiding airlines like the plague. As you say low margins and not good prospects at all! If Warren Buffet has openly said that investing in airlines was a mistake, people should take the hint.

Delta Air Lines, Inc. - DAL