DAL - Delta Air Lines Inc. (DAL) J.P. Morgan 2024 Industrials Conference (Transcript)
2024-03-12 11:57:06 ET
Delta Air Lines, Inc. (DAL)
J.P. Morgan 2024 Industrials Conference
March 12, 2024 07:45 AM ET
Company Participants
Ed Bastian - Chief Executive Officer
Glen Hauenstein - President
Dan Janki - Executive Vice President and Chief Financial Officer
Julie Stewart - Vice President, Investor Relations
Conference Call Participants
Jamie Baker - J.P. Morgan
Mark Streeter - J.P. Morgan
Presentation
Jamie Baker
Good morning, everybody. My name is Jamie Baker. I cover the U.S. Airlines and Aircraft Leasing Companies at JPMorgan. And it's my pleasure to welcome you back to yet another JPMorgan Industrials Conference.
I'm joined by my colleague and good friend, Mark Streeter. And we have an absolute murderer's row of senior managers that are going to be presenting throughout the date today. Obviously, pretty interesting times. Hopefully, our conference can draw some attention to just how inexpensive airline stocks are at the moment. To wit, on a forward PE basis, the Big Three are trading 16 turns inside of the market at the moment. And you'd have to go back to the recovery period following the financial crisis to find a derating of that magnitude.
And of course, since that time -- in fact, even during the RASM crisis of 2015, we didn't see this much of a disconnect between airline valuations and that of the broader market. And since that time, I mean, international returns have only grown stronger. The premium market has exploded for lack of a better term, loyalty returns significantly higher.
And perhaps most importantly, the Big Three have seen the margin high ground from the low-cost carriers, the LMAs, really for the first time since industry deregulation. So I'm happy to be here, but if it sounds like I'm frustrated with current multiples, it's because I am.
Mark, anything you want to add to that before we kick things off with Delta?
Mark Streeter
I would just say we have several credit investors in the room, and I don't think they're necessarily complaining about where credit prices are right now because the credit market definitely has a different view than the equity market. And that sometimes tells you something. So pay attention to that today as we talk about the balance sheet repair process and where we are just in the industry's recovery from COVID....
Delta Air Lines, Inc. (DAL) J.P. Morgan 2024 Industrials Conference (Transcript)