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Exclusive: Delta posts profit despite jump in costs, vows to improve reliability after airline 'pushed too hard' – TalkOfNews.com

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Delta posts profit despite jump in costs, vows to improve reliability after airline 'pushed too hard'

#Delta #posts #profit #jump #costs #vows #improve #reliability #airline #039pushed #hard039

An Airbus A330-323 aircraft, operated by Delta Air Lines.

Benoit Tessier | Reuters

Delta Air Lines on Wednesday reported a quarterly profit thanks to travelers willing to pay up to fly, more than making up for higher costs.

The carrier also vowed to improve reliability after an increase in delays and cancellations prompted it to scale back its summer schedule.

The airline industry “was starved for revenue for the last two years,” CEO Ed Bastian told CNBC’s “Squawk Box” on Wednesday after the carrier released results. “We pushed too hard. We scaled back a bit … and in July we’re running a great operation.”

Delta shares were down more than 6% in morning trading after its adjusted results fell short of analyst estimates. Rivals’ shares also dropped more than the broader market, which slumped after inflation data came in higher than expected.

Delta said its third-quarter capacity would be 83% to 85% of 2019 levels, suggesting the airline is sticking with a conservative schedule compared with some rivals. The company expects a third-quarter profit and reiterated its forecast for full-year profitability.

It expects to see third-quarter sales 1% to 5% higher than three years ago, along with increased costs.

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Delta is the first U.S. airline to report earnings for the second quarter. United Airlines and American Airlines announce next week.

Here’s how the company performed in the second quarter compared with what analysts expected, according to average estimates compiled by Refinitiv:

  • Adjusted earnings per share: $1.44 versus $1.73 expected.
  • Revenue: $13.82 billion versus $13.57 billion expected.

Despite issues during the start to the summer travel season, demand rose for both business and leisure travel, Delta said. Domestic corporate travel sales are 80% recovered from before the Covid pandemic, up 25 percentage points from the first quarter of the year, it said.

Delta’s costs for each seat it flew a mile, excluding fuel, were up 22% from 2019 for the three months ended June 30. Its fuel expense rose 41% from three years ago to $3.2 billion.

A surge in travel demand helped the airline post $735 million in net income. In a measure of how high fares have risen, Delta flew 18% less capacity in the second quarter than it did in the same period of 2019, but it generated $13.82 billion in revenue, 10% more than three years ago.

Revenue for domestic travel was 3% higher, Delta said, noting it also logged improvements in trans-Atlantic travel.

Delta and other airlines have been comparing their results to 2019 to show their progress in getting back to pre-pandemic performance.

‘Rough six weeks’

Executives at Delta and its fellow airlines will face questions from investors about a rocky peak travel season and higher costs. Staffing shortages have exacerbated routine issues like bad weather, driving up the rates of flight cancellations and delays.

Bastian said Delta is limiting its capacity and that it has already improved its performance.

“We had a rough six weeks,” Bastian said, apologizing to customers for the disruptions. “We’ve issued compensation and the appropriate level of apology.”

Over the key July Fourth holiday weekend, Delta allowed travelers to change their flights without paying a difference in fare, an unusual waiver that the airline said would allow customers to avoid potential flight disruptions.

Airline executives and the Federal Aviation Administration have blamed each others’ staffing issues for contributing to the delays. Transportation Secretary Pete Buttigieg publicly admonished airlines for not being prepared for summer travel.

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Bastian said Delta added 18,000 employees since the start of 2021 to bring it to 95% of its 2019 staffing. Delta urged and convinced a similar number of employees to take buyouts or early retirement packages earlier in the pandemic, an effort to cut costs.

The carrier is in the process of training many of its new employees.

Delta executives will discuss results with analysts and media at 10 a.m. ET Wednesday.

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Exclusive: Rezonate raises $8.7M and launches its cloud identity protection platform out of stealth – TalkOfNews.com

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Rezonate raises $8.7M and launches its cloud identity protection platform out of stealth

#Rezonate #raises #87M #launches #cloud #identity #protection #platform #stealth

Rezonate, a Boston- and Tel Aviv-based startup that offers an agent-less cloud identity protection platform that aims to help DevOps teams minimize attackers’ opportunities to breach cloud identity and access, is coming out of stealth today and announcing an $8.7 million seed funding round, led by State of Mind Ventures and Flybridge, with participation from toDay Ventures, Merlin Ventures and a number of angel investors.

Founded in January 2022, Rezonate is part of a group of modern identity and access management (IAM) startups that aim to modernize the current state of affairs in this space, which is struggling to meet the demands of modern cloud infrastructure systems. This shift is creating new attack surfaces, especially as enterprises move to the cloud — and more dynamic infrastructure systems — at an ever-increasing rate. The number of security breaches stemming from issues with identity and access management is already on the rise. Indeed, Gartner expects that by 2023, “75% of security failures will result from inadequate management of identities, access, and privileges.”

Image Credits: Rezonate

Co-founder and CEO Roy Akerman was previously the head of the Israeli Cyberdefense Operations, while Rezonate co-founder and CTO Ori Amiga previously led R&D for this unit. Both received the Medal of Honor for their contributions to Israel’s National Security.

“The rapidly-changing cloudscape together with the proliferation of human and machine identities requires a different approach,” said Akerman. “Modern infrastructures require a precise and nimble way to outsmart attackers. One that prioritizes cloud identities and access at its core and is constantly adapting to current dynamics over yesterday’s snapshots and, for the first time, gives defenders and builders the means to act confidently.”

Image Credits: Rezonate

Rezonate promises to discover all of a company’s cloud and identity providers and the corresponding access privileges of its employees. The platform automatically detects security gaps and abnormal access attempts in real time. Rezonate promises that within minutes of deploying its solution, its platform can identify cloud identity and access risks and provide guidance for remediating them, or even automatically remove access and terminate sessions.

At the core of all of this is what Rezonate calls its ‘Identity Storyline,’ which aims to provide DevOps and security teams with a context-rich dashboard that helps them understand the security risk across a company’s cloud estate. With this, users get an easy-to-read dashboard that clearly lays out what kind of access every user has — and where there are potential issues.

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“The fact that in just ten months from our first line of code we already have active customers, solving key gaps daily, affirms the criticality of the cloud identity and access issue. In a cloud world where everything is changing all of the time, DevOps teams need a solution as dynamic and automated as the infrastructure they need to protect is,” said Amiga.

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Exclusive: Building a Prospecting Motion: How to Outreach Like a Pro – TalkOfNews.com

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Building a Prospecting Motion: How to Outreach Like a Pro

#Building #Prospecting #Motion #Outreach #Pro

The core responsibility of business development is to generate a pipeline of new business opportunities. For teams looking to close new customers, this work is indispensable.

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Exclusive: 5 things to know before the stock market opens Tuesday – TalkOfNews.com

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5 things to know before the stock market opens Tuesday

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A trader works on the floor of the New York Stock Exchange (NYSE), December 5, 2022.

Brendan McDermid | Reuters

Here are the most important news items that investors need to start their trading day:

1. Rough start

Stocks got off on the wrong foot this week with an ugly selloff Monday as investors weighed strong new economic data that stoked worries of sustained rate hikes from the Federal Reserve. The Dow dropped more than 480 points, while the S&P 500 declined 1.79% and the Nasdaq fell 1.93%. When it meets next week, the Fed’s policy-setting committee is expected to raise its benchmark rate by half a percentage point, which is less than the three-quarter-point hikes of the past few months but still sizable. Smith & Wesson and Stitch Fix earnings are set to hit after the bell Tuesday. Read live market updates here.

2. Salesforce slumps

Bret Taylor, co-chief executive officer of Salesforce.com Inc., right, and Marc Benioff, co-chief executive officer of Salesforce.com Inc., wear rabbit ears during a keynote at the 2022 Dreamforce conference in San Francisco, California, on Tuesday, Sept. 20, 2022.

Marlena Sloss | Bloomberg | Getty Images

3. Most Ford dealers sign up for EV plan

4. Biden touts Arizona chip investment

U.S. President Joe Biden speaks prior to signing railroad legislation into law, providing a resoluton to avert a nationwide rail shutdown, during a signing ceremony in the Roosevelt Room at the White House in Washington, U.S., December 2, 2022. 

Kevin Lamarque | Reuters

5. Russia ratchets up missile attacks

A building burns after shelling in Bakhmut, Donetsk region, on December 4, 2022, amid Russia’s invasion of Ukraine.

Yevhen Titov | Afp | Getty Images

And one more thing …

Actress Kirstie Alley

Noam Galai | Wireimage | Getty Images

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