The airline industry is heading UP WIND

WELCOME BACK TO MAKING MONEY, OIL PRICES SHARPLY HIGHER AND YOU WILL GETTING WEEKS, ONE OF THE IMPORTANT BYPRODUCTS THE RELIES ON THE STRAIT OF HORMUZ. A LOOK AT THE AIRLINE INDUSTRY WHAT TRAVELERS AND INVESTORS NEED TO THINK ABOUT. MANAGING DIRECTOR FOR GLOBAL AIRLINES. GOOD TO SEE YOU. CAN WE START WITH AN OVERVIEW OF HOW YOU CHARACTERIZE THE HEALTH OF THE AIRLINE SECTOR PROFITABILITY HERE IN THE U.S.? >> THE GOOD NEWS IS UP QUITE A BIT BUT THE DEMAND IS STRONG. THE CONSUMERS COPY AND ENABLING AIRLINES TO PASS THROUGH OF THE COST AND IT'S NOT COMFORTABLE COMMISSION POSITION WHERE IT IS TODAY, BUT THE STRONG CONSUMER IS A GOOD SIGN HELPING SUPPORT CASH FLOW AND EARNINGS TO SOME EXTENT THAT IS CORPORATE FARING BETTER? >> IT IS REALLY STRONG, LAST YEAR YOU SAW A LOT OF UNCERTAINTY IN THE CORPORATE SECTOR SO I THINK SOME LEVEL OF PENT-UP DEMAND OCCURRING. WE WERE WONDERING IF IT WAS A LITTLE MORE FRONT AND LOADED BUT AS FAR AS WE CAN TELL, IT'S CONTINUING TO THE SUMMER AND WE WILL SEE POST LABOR DAY HOW IT WILL TRANSFER SO FAR IS DOING REALLY WELL BUT CORPORATE AND LEISURE ARE BOTH RIGHT AND WRONG. >> DO YOU REMEMBER A FEW MONTHS AGO AT THE START OF THE CONFLICT IN IRAN, EVERYBODY WAS WORRIED ABOUT THE AIRLINES THEMSELVES THAT THEY WOULD HAVE TO CANCEL FLIGHTS AND SOME OF THEM DID IN ADDITION TO RAISING PRICES, BUT SIX MONTHS AND, IT DOESN'T SEEM THAT BAD, AM I MISSING SOMETHING? >> I THINK THERE WERE TWO THINGS TO WORRY ABOUT, ONE IN TERMS OF CANCELING FLIGHTS IS HIGH FUEL AND IF IT BEARS DON'T KEEP UP AND WE HAVE SEEN MIDTEENS TYPE REVENUE INCREASES AND AIRLINES IN THE U.S., THAT'S CONSIDERABLE. NOBODY ANTICIPATED THAT CONSUMER MOVING TO ABSORB THAT LEVEL OF INCREASE SO I THINK THE AMOUNT OF CAPACITY HAS HAPPENED LOWER THAN ANTICIPATED. AFTER THE SUMMER, WE ARE STILL FLAT CAPACITY OF A YEAR END THAT IS A CONSTRAINT IN THIS WRONG GDP BACKGROUND, BUT ARE RIGHT, AT THE CAPACITY CUT AND EARLY ON THERE WAS CONCERN IN OTHER AREAS OF THE WORLD, EUROPE, ASIA MORNING, THERE MIGHT BE BY ISSUES THAT CAUSED FLIGHT CANCELLATIONS, BUT SO FAR, FUEL PRICES HAVE GONE UP IN SUPPLY-SIDE ECONOMICS IS WORKING IN D.C. A RESPONSE TO THAT WITH THE BY INCREASING YIELDS. >> YOU HAVE A PERFORMING ON DELTA, HAWAII LIKE DELTA ASKED. >> WELL-POSITIONED HEADING IN THIS, THEY DO OWN A REFINER WHICH HELPS THEM OFFSET SOME OF THE REFINING INCREASES WE SEEN BUT REALLY, HOW DELTA WAS POSITIONED HEADING INTO THIS IS THEY HAVE WRONG MARGINS, GOOD BALANCE SHEET AND A BALANCED CAPITAL STRATEGY OVER THE LONG-TERM EXPOSURE TO MORE PREMIUM ENDLESS PRICE-SENSITIVE ON THE CORPORATE AND LEISURE SIDE. ALL CAPS COMES TOGETHER TO MAKE DELTA A STRONGER AIRLINE TO WITHSTAND THIS FUEL PRICE. >> YOUR OWN REFINERY CERTAINLY HELPS. SO THERE IS AMERICAN, SHARES SOMETHING DONE ABOUT 10%. HE NODDED TRADING SIDEWAYS, WHAT ARE YOUR THOUGHTS ON AMERICAN AND UNITED? >> WITH AMERICAN, THEY ARE RUNNING IN A WEAKER BALANCE SHEET AND THEY DO HAVE EXPOSURE TO BEST MY SENSITIVE, THEY ARE A STRONG POSITION AND THEY ARE DOING THINGS THAT THEY HIT IT INTO THIS CRISIS AND A WEAKER POSITION AND HAVING A HARD TIME CAUSING THAT MARGIN CAP WITH DELTA. HE NODDED ON THE OTHER HAND, THE PRE-PANDEMIC SET UP FROM A THEY'VE TO CLOSE THE GAP WITH DELTA AND SOME OF THAT COMING COST CAME INTO THIS WITH A STRONGER POSITION AND A DECENT BALANCE SHEET, AND AGGRESSIVE PLAN AND CAPACITY GROWTH AND FROM THAT PERSPECTIVE THAT'S WHY WE LIKE DELTA, MORE RISK AVERSE IN THIS CLIMATE OF THINGS AROUND TOMORROW AND THE THING IS BLUE EYES THEN THERE'S MORE EARNINGS WE LIKE THE RISK REWARD BETTER. >> CAN I ASK YOU A PERSONAL QUESTION KNOWING WHAT YOU KNOW ABOUT THE AIRLINES, HOW DOES IT MAKE YOUR PERSONAL FLYING EXPERIENCE DIFFERENT? YOU LOOK FOR CERTAIN THINGS I WOULDN'T THINK OF? >> I BOOK A FLIGHT TO MAKE SURE I HAVE ENOUGH CONNECTION TIME AND MONEY LIKE TEND TO HAVE OPERATIONS IN THE AFTERNOON AND EVENING LIGHTS AND THINGS LIKE THAT BUT IT IS SIMILAR TO A PASSENGER EXPERIENCE AND WHAT WE LOOK FOR. >> OVERSEAS FOR 30 SECONDS, LIKE CORN AIRLINES IF YOU CAN TELL US WHY. >> STRONG BALANCE SHEETS AND WELL MANAGED COMPANIES AND WRONG MARGINS IF YOU THINK ABOUT SIMILAR TO DELTA, HIGH-QUALITY AIRLINES, THE ADDED BENEFIT THEIR SALES LATIN AMERICA WHICH IS COMMODITY -BASED ECONOMY SO AN ENVIRONMENT LIKE THIS IN A DEMAND STRENGTH COMPONENT TO IT AND ITS LONG-STANDING, WELL MANAGED COMPANY, GREAT STRUCTURE AND BALANCE SHEET AND THEY WILL BE WELL POSITIONED AS OTHERS STRUGGLE TO TAKE ADVANTAGE OF