phil lebeau joins us now with the ceo doug parker. >> reporter: let's bring in doug parker from americans headquarters, dry headquarters down in ft. worth, texas doug, only for you would i stand out in the rain. tell me about the fourth quarter. you beat by a penny. revenue roughly in line with expectations you guys had a number of challenges relative to what, you know, you went into the year expecting in 2019, right >> we did. we certainly were dealing with the 737 max problem. we had our own operational issues in the summer of this year but the fourth quarter we had really great results, eps up some 19% year over year and the operating performance the best in our company history we're really pleased with the results and entered 2020 with great momentum and we're excited about what lies ahead. >> reporter: we'll talk about your 2020 outlook in just a bit. you brought up the max give me your reaction to the latest announcement from boeing earlier this week that they are going to be not expecting to have the max back until at least the middle of the year >> again, we're obviously disappoi

ed: doug parker there, a pretty -- he will never live that down.d a pretty hostile takeover battle with them. its interesting. we were bankrupt at the time at usair offered $10 billion to buy delta, for a company that is not worth anything. everyone assumed it is going to be a foregone conclusion, and the people of the company stood and said it is not going to happen. we have a better business plan and were able to convince creditors to stay with delta, and as a result you have seen what we have been able to do. david: you said to the employees and colleagues, we will give you 10% of the profits, is that right? ed: when we went through restructuring, people took a lot of pay cuts, a lot of change, and we made a commitment to the employees then that once we became profitable, 15% of profits would go back to the people, which we honor to this day. david: how much did that produce last year? ed: last year we paid $1.3 billion to our people. david: does that mean stock price would be higher if you didn't pay it to them? ed: our stock price would be low

ed: doug parker will never live that down. no, we had a pretty hostile takeover battle.e got an interesting story. we were bankrupt, we weren't worth anything at the time. usair came in and offered $10 billion to buy delta for a company that is not worth anything. so everyone assumed, well, that's going to be a foregone conclusion. the people of the company stood, and they said, it is not going to happen, we have a better idea, we have a better business plan. we are able to convince the creditors through the restructuring process to stay with delta, and as a result of that you see what we have been able to do. david: as part of that, what happened is, you said to the employees and your colleagues, we will give you 10% of the profits to the employees, is that more or less right? ed: when we went through the restructuring, people took a lot of pay cuts. benefit losses, a lot of change. and we made a commitment to the employees then at that point that once we became profitable, 15% of the profits would go back to the people, which we honor to this day. we still do. david: s

we want to let you know that the ceo doug parker said on an earnings call the coronavirus is not impactingdid note one headwind. that is where the chart comes in. boeing and how it is up for a long grounding of the boeing 737 could impact american airlines. you can see that as the stock of the hour. guy: ok. thank you very much, indeed. thank you to viviana hurtado with our stock of the hour. up next, we'll continue to update you with the markets. this is bloomberg. ♪ vonnie: breaking news on the travel warning to china. has advisedpartment increased caution. the travel alert has reverted to exercise increased caution. , the stateiefly department had shown reconsider travel as its warning. it escalated its advisory for the country to level three. that has now reverted to exercise increased caution. the conversation will continue. coming up next, "balance of power" with david westin. he will be speaking to the ceo of philip morris. that conversation coming due from the world economic forum in davos. let's look at where u.s. markets are trading. we are obsession lows, but beginning to track

and speaking of american, we'll be talking exclusively with american ceo doug parker tomorrow morningnot want to miss this interview. 10:30 a.m. it will be right after they post their 4 q earnings and we're going to be talking a lot about the max and what the outlook is for 2020 with doug parker tomorrow morning. >> that's not quite your last one with oscar munoz as ceo, right? >> we get one more but you can tell the transition, it's beginning already as he moves into the chairman role and it will be interesting to see. this is a company that has done a lot under oscar munoz and i wouldn't be surprised if he takes a bit of a victory lap with his next earnings call. >> phil lebeau, thank you. mike, united airlines down 3% now. worst performer in the transportation average transports just can't catch up. >> the airlines are starting to act a good deal better i think you can take what he says, it's a more disciplined company and still say there's a little too much noise around it with the risk to asian travel volumes, as well as the 737. >> fourth quarter sales missed wall street expecta

the company warned about impact of fuel costs on margins ceo doug parker says oil is the second largest low cost provider allegiant, jetblue and united down with fuel cost concerns >> frank, thank you. >>> does today's market drop offer some buying opportunities in tech? joining us with the best picks for 2020, maybe names to stay away from, steve milanvich and gene munster steve, you put out a report talking about investor survey and some of your own calls you don't think investors should look for deals with pinterest, trip adviser, grub hub, slack, why not? >> tech may be due for a correction love technology longer term, things have gotten a bit frothy. you had mostly pe expansion driving 42% increase in tech stocks the last 12 months. we're at a point the economy is continuing to be weak, more ism numbers out today were fairly poor tech earnings are down year over year, that's normal. what's not normal, pe is up 21 times. it hasn't corrected the way you see. as a result, we would be careful, from strategy perspective, underweight semis, hardware, overweight services and internet we p

. >>> and catch our interview with american airlines ceo doug parker tomorrow at 10:30 they have grounded maxes that is a big one. that does it for us today. we'll see you tomorrow "power lunch" begins right now. >> welcome, everybody. i'm tyler mathisen and here is what is new at 2:00 on "power lunch. stocks are off the highs of the day as you see right there but they are still modestly higher the dow climbing back as boeing is making a little bit of a comeback midday. we'll talk about that one? and the stock almost positive. and phil le beau with comments from the new ceo and meg tirrell with the latest on the mysterious coronavirus and it is spreading in china and it is hitting our shores here. "power lunch" starts right now. >>> good day, i'm contessa brewer, let's get right to it with boeing recovering after being down more than 3%. phil lebeau is following the twist and turns, what do you have. >> the reason they are rebounding is because ceo just wrapped up a conference call and said we're not cutting the dividend or scrapping the max, we still believe in it the questions that he r

southwest and uniteded, yes, they have the max scheduled to return in early june, but as you heard from doug parkerguys, they're going to be moving those dates back once they get a little better sense of what the outlook is from boeing a future date remains to be seen back to you. >> thank you very much great job with those interviews and earnings airlines not only dealing with low, but now worries over a spreadinging coronavirus for more, let's bring in brandon, he's an analyst at barclays thank you for being here with us to pick up on some of phil's thought, i understand you don't cover boeing, but are an airline analy analyst. you've heard the ceos. they're frustrated about what's going on of your coverage, i don't believe delta has the 737 max, but united and american do so if the state gets pushed forward for the return to service, which airline is going to be worse off and how are they going to deal with it? where does that capacity go? >> first off, thanks for having me on the show today sell fi as it's delayed, it has a pretty positive impact on yields. you're correct delta doesn't have any

. >>> and catch our interview with american airlines ceo doug parker tomorrow at 10:30 they have groundedt is a big one. that does it for us today. we'll see you tomorrow "power lunch" begins right now. >> welcome, everybody. i'm tyler mathisen and here is what is new at 2:00 on "power lunch. stocks are off the highs of the day as you see right there but they are still modestly higher the dow climbing back as boeing is making a little bit of a comeback midday. we'll talk about that one? and the stock almost positive. and phil le beau with comments from the new ceo and meg tirrell with the latest on the mysterious coronavirus and it is spreading in china and it is hitting our shores here. "power lunch

our ceo doug parker said that about the max.e had to prove it yesterday but now we're all pointing in the same direction, it sounds, so we'll look for that engagement and take care of our people that's what this is about. >> yeah, we'll go to phil with more on that american airlines announcement in a moment but first, dennis, wanted to ask you. american said that crew members are free to wear masks if they would like to do so while operating flights. just curious have you heard that they're actually doing that? >> i've not heard that at american airlines. certainly that is a proper precaution just thinking of this now if you are in the process of winding it down. to have it as a day-to-day event, that in itself is certainly a sign that things are not well so we'll see what the -- we want to keep our people safe but if you're having to offer a ticket with a masked crew member, that's not the way i want to see business done on my aircraft >> dennis tajer, thank you for joining us >> thank you >> we appreciate it. from the allied p