Delta may see loss in 4th quarter

[mad691]

Here we go again.


http://www.reuters.com/article/marketsNews/idUKWNAS369420071204?rpc=44

 

[mad691]

WASHINGTON, Dec 4 (Reuters) - Delta Air Lines Inc (DAL.N: Quote, Profile, Research) said on Tuesday that it may post an operating loss in the fourth quarter because of higher-than-expected fuel prices.
The No. 3 U.S. carrier lowered its operating profit margin target to a range of 0 percent to negative 2 percent. That compares with an October forecast of an operating profit margin of 3 percent to 5 percent, Delta said in a filing with the U.S. Securities and Exchange Commission.
The company also raised its forecast for fourth-quarter jet fuel to $2.60 from $2.36 per gallon. Delta said it was responding to higher fuel prices by reducing capacity.
It said it took 13 domestic aircraft out of its fleet during the fourth quarter. Delta also plans to cancel the equivalent of 10 domestic mainline aircraft and 35 regional jets by grounding aircraft and reducing utilization.
Delta said it expected 2008 domestic capacity to decline 4 percent to 5 percent.
Some of those planes will be transferred to more lucrative international routes. Delta forecast international capacity to rise 15 percent next year.
The company plans to cut costs by about $400 million in 2008, in part by installing lighter seats and winglets on certain aircraft and halting hiring of back-office jobs. (Reporting by Chris Reiter; Editing by Maureen Bavdek)

 

[General Lee]

The ten mainline domestic aircraft we will take out of our fleet were already planned---they are 764s and some domestic 767s that are going to get refitted for INTL seat configurations. They aren't parking them perse'. We are still so far getting 9 MD90s and 7 737-700s for domestic flights in 08, though. The halting of hiring in the "back office" was announced a few months ago. Pilot and flight attendant hiring is still ongoing due to the INTL expansion.

Bye Bye--General Lee

 

[BLUE BAYOU]

I think you'll see many other airlines adjust their 4th quarter numbers because of the fuel costs. International travel is where Delta is banking its future, but even that won't be immune from the slowdown in travel predicted by the slowing economy. Additionally, the dollar has taken a beating lately and most US leisure travellers are now looking to the Carribean and Central/South America for travel deals. Jeeze, even the Canuc Dollar is worth the same or more than the US currency now. The good news is that in States, European travel is up because it is a very cheap destination for the Euro...

 

[General Lee]

I think you'll see many other airlines adjust their 4th quarter numbers because of the fuel costs. International travel is where Delta is banking its future, but even that won't be immune from the slowdown in travel predicted by the slowing economy. Additionally, the dollar has taken a beating lately and most US leisure travellers are now looking to the Carribean and Central/South America for travel deals. Jeeze, even the Canuc Dollar is worth the same or more than the US currency now. The good news is that in States, European travel is up because it is a very cheap destination for the Euro...

Our INTL travel is made up of mostly foreign travellers, who are coming to the States because of the weak dollar. When I fly a large pax load into ATL from abroad, most are going to LA, LAS, MCO, or NYC to buy cheap stuff. People from Ireland actually want to visit the Grand Canyon, and now is the time to do it. This is a great time for them, and we know exactly how much it costs to do well in terms of dollars, which is still cheap for the foreigners. The problem is oil, and it's massive fluxuations can be a problem when setting fares.

Bye Bye--General Lee

 

[Tanker Clown]

Looks like the General's spin machine is in full effect. I"m sure that we'll soon hear that "losses are good for Delta." Maybe they'll be looking at a 4th quarter profit if the employee groups take another round of pay cuts.

 

[jke406]

bankruptcy is good, too.

 

[JetFumes]

Well......the thread started out civil.

 

[BILL LUMBERG]

The Cream of the crap still in the Military can still take their potshots at Delta while they haven't the first clue what they are talking about.....You Reading me Tanker A$$clown???

So there's a loss....dance around, have a party, but keep it to yourself......General wasn't spinning anything other than the fact that the aircraft pulldowns were already announced and there are hard deliveries of aircraft coming....The Front Office went on a hiring spree after BK and now they are putting a stop to it.......Did you know that Delta had a guy who was in charge of making sure that close flight numbers weren't used around the same airspace at the same time (Like Delta 349 and Delta 348)...no kidding, I heard it was getting that ridiculous over there again.......

We are still hiring pilots, and once that stops....then we need to worry.....

Losses suck yes, but hopefully we'll get this train back on track...

Take your shots Clown, I'm waiting for ya.....

 

[bravodude]

The Cream of the crap still in the Military can still take their potshots at Delta while they haven't the first clue what they are talking about.....You Reading me Tanker A$$clown???

So there's a loss....dance around, have a party, but keep it to yourself......General wasn't spinning anything other than the fact that the aircraft pulldowns were already announced and there are hard deliveries of aircraft coming....The Front Office went on a hiring spree after BK and now they are putting a stop to it.......Did you know that Delta had a guy who was in charge of making sure that close flight numbers weren't used around the same airspace at the same time (Like Delta 349 and Delta 348)...no kidding, I heard it was getting that ridiculous over there again.......

We are still hiring pilots, and once that stops....then we need to worry.....

Losses suck yes, but hopefully we'll get this train back on track...

Take your shots Clown, I'm waiting for ya.....

You can spin ity all you want but the fact still remains you used the BK process and will still post a loss. Thats what you get for stealling the pensions of all the retired guys. Spin away my friend spin away.

 

[General Lee]

You can spin ity all you want but the fact still remains you used the BK process and will still post a loss. Thats what you get for stealling the pensions of all the retired guys. Spin away my friend spin away.

Talk about spinning. Overall for the year, we have been profitable, with a possible small operating loss this quarter only due to high fuel. And, the retired guys got and will get most of their pension thanks to the PBGC being made "full" during the claim sale. They will get some higher medical care costs, along with the rest of us though.

Bye Bye--General Lee

 

[PeanuckleCRJ]

Did you know that Delta had a guy who was in charge of making sure that close flight numbers weren't used around the same airspace at the same time (Like Delta 349 and Delta 348)...no kidding, I heard it was getting that ridiculous over there again.......

He's not doing his job haha, we were 1774 the other night and in a nice 20 mile trail with 1775 all the way across the country.

 

[aerobato]

Talk about spinning. Overall for the year, we have been profitable, with a possible small operating loss this quarter only due to high fuel. And, the retired guys got and will get most of their pension thanks to the PBGC being made "full" during the claim sale. They will get some higher medical care costs, along with the rest of us though.

Bye Bye--General Lee

A close friend of mine is retired and spends all of the little retirement left from Delta on healthcare benefits each month.

Try to get cheap health benefits at 63. Well, at least Delta is painting all of the aircraft..money well spent, who cares about peoples health benefits.

Delta = company that does not care about it's employees.

Plain and simple.

 

[Tanker Clown]

"Well, at least Delta is painting all of the aircraft..money well spent, who cares about peoples health benefits."

Do you mean painting the Delta jets to the Song colors or repainting them back to the Delta colors after that great marketing bonanza? Looks like they are in the hire till you furlough mode now.

 

[instructordude]

"Well, at least Delta is painting all of the aircraft..money well spent, who cares about peoples health benefits."

Do you mean painting the Delta jets to the Song colors or repainting them back to the Delta colors after that great marketing bonanza? Looks like they are in the hire till you furlough mode now.

Tanker Clown, if you don't mind me asking, what is your current position? If you don't like Delta don't apply, plenty of folks trying to get in the door.

Bye Bye instructordude