Airlines, Cruises, Casinos: Are Things Actually Looking Up?

The Civil Reserve Air Fleet (CRAF) is a US program where commercial airlines commit aircraft to support military airlift needs during emergencies. The CRAF has three segments: long-range international, short-range international, and national. Airlines must meet specific fleet and crew requirements to participate. The program has been activated three times since the Cold War. As of 2025, over 800 aircraft from more than 20 carriers participate, offering significant surge capability.

Berkshire Hathaway, led by Greg Abel, increased investments in Alphabet and Delta Air Lines, and repurchased $4.5 billion of its own stock in Q2. Abel's strategy aligns with Buffett's value-focused approach, with Berkshire holding $359.2 billion in cash and short-term investments post-purchases. Berkshire's buybacks follow a rule where shares are repurchased only when below intrinsic value, with average prices of $476.01 in May and $487.98 in June.

Levi's reported Q3 revenue of $8.44B, up 3.5% YoY, beating estimates. Carnival's stock rose 19.2% post-earnings. Scholastic saw revenue decline 3.9% YoY, missing estimates. Nike's revenue fell 4.3% YoY, slightly below expectations. Delta's revenue grew 21.1% YoY, topping estimates but missing EPS guidance. The market has shifted focus from AI to geopolitics and back to fundamentals.

Delta Air Lines (DAL) reported a $1.5B September-quarter pre-tax profit, with revenue up 16%. Morgan Stanley maintained an Overweight rating and $125 price target, citing demand resilience and pricing power. Delta expects 2026 pre-tax profit of about $4.5B, despite a $6B fuel cost increase. Management guided Q4 revenue up 20% and full-year EPS between $5.10 and $5.60.

Carnival, Royal Caribbean, MSC, and Norwegian Cruise Line are investing in private destinations to boost passenger spending and profitability. Carnival expects 3.5 million passengers at its Caribbean destinations next year. Royal Caribbean's Perfect Day at CocoCay has driven demand for shorter itineraries. Disney Cruise Line expanded with Lookout Cay at Lighthouse Point. These investments aim to enhance the cruise experience and generate additional revenue.

Goldman Sachs maintained a Buy rating on Las Vegas Sands (LVS) but lowered its price target from $55.00 to $47.00, citing evolving market conditions. LVS is seen as undervalued with a GF Value™ of $68.03 vs. current price of $36.89. The company operates integrated resorts in Asia and has a market cap of $23.89 billion. 12 gurus hold LVS, with 8 recently adding to their positions.