Reuters - Video

EDITION: U.S. | U.K. | IN

Take 120

TAKE 120: No "LUV" for Southwest - Delta the Better Buy

Monday, Jan 14, 2013 - 02:31

Jan. 14 - Fund manager Craig Hodges says this will be the year airlines rebound and feels Delta's revenue growth and more attractive valuation make it his choice over Southwest

▲ Hide Transcript

View Transcript

It's time for another tape what's funny that's to edit them giving Craig Hodges to tell me why he's flying high on airlines. And the -- his toys that delta over southwest. Craig airlines aren't those stocks to trade and not to own. -- the perception is that there -- only -- but they've really done a tremendous job of changing their business model. And it's and it's it's kind of a new world for for the airlines and I think it's going to be very profitable going forward. Number one reason why you like delta over southwest. Just -- the fact that they can they've done so poorly and come out of bankruptcy. There on the verge of making some serious money they'll make -- two dollars and 66 cents a share. This next year which is only trading up five times earnings southwest traits about 1112 times -- So it's a much cheaper and I think there's also some more some faster growth it felt. Some of that might be baked into the stock performance delta outperform southwest over the past year but there's more up -- thing. I believe so yeah they're they're doing a lot of deals they've they've bottom refinery that's a very -- thing -- doing -- make that made a deal with Virgin Atlantic. They're doing a lot of really good things that we think it's going to be able to get that stock going for the first time quite awhile. Greg you know file a -- fly and see this week at a Dallas traveling from New York it's cheaper but -- and southwest so -- -- that it checked out the bottom line. Yeah -- -- also the very sophisticated pricing models and you know pricing it in certain markets can't be cheaper but. All in all it they pretty much match match although all the different airfares they match and with other airlines so it's pretty much uniform. Legacy costs are not an issue for delta anymore right. I know with with them coming out of bankruptcy they've reorganized all that -- got -- contracts and and much lower cost basis. -- before that's an advantage they have of overall the other -- airlines did not file for bankruptcy how to read his book. A revenue it look like they're they're increasing I think you're seeing about anywhere from four to 6% growth each each quarter. So that you're seeing traffic counts go laughter. Capacity is still being strong kind of the best books and area. Are -- to Craig Hodges for his take on flooding delta verses out well I'm Rhonda schaffler at the writers.

TAKE 120: No "LUV" for Southwest - Delta the Better Buy

Monday, Jan 14, 2013 - 02:31

Top News »

Money »

S&P falls back from record high S&P falls back from record high

Fri, Aug 22, 2014 - (1:35)

S&P 500 closes at new high S&P 500 closes at new high

Thu, Aug 21, 2014 - (1:24)

S&P 500 just shy of record S&P 500 just shy of record

Wed, Aug 20, 2014 - (2:23)

Apple hits $100 a share Apple hits $100 a share

Tue, Aug 19, 2014 - (2:06)

Nasdaq closes at 14-year high Nasdaq closes at 14-year high

Mon, Aug 18, 2014 - (2:23)

Putin puts Wall Street in buying mood Putin puts Wall Street in buying mood

Thu, Aug 14, 2014 - (2:10)

We've become a promotional culture-RetailMeNot's Bodge We've become a promotional...

Thu, Aug 14, 2014 - (4:39)

Dow back to positive territory for year Dow back to positive territory for year

Wed, Aug 13, 2014 - (2:18)

Markets cheer Russia's Ukraine exit Markets cheer Russia's Ukraine exit

Fri, Aug 08, 2014 - (1:50)

Russia, Iraq push Dow to three-month low Russia, Iraq push Dow to three-month low

Thu, Aug 07, 2014 - (2:27)

Wall Street gains but telecom disconnected Wall Street gains but telecom disconnected

Wed, Aug 06, 2014 - (2:28)

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)

The week that changed Boston The week that changed Boston

Mon, Apr 14, 2014 - (3:28)