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What could low oil prices do for Delta in 09?

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General Lee

Well-known member
Joined
Aug 24, 2002
Posts
20,442
Delta Air Lines could see $5 bln benefit in '09 with $50 oil

By Christopher Hinton
Last update: 8:51 a.m. EST Dec. 2, 2008

Delta Airlines could see a $5 billion benefit in 2009 if oil remains at around $50 a barrel, said Ed Bastian, the company's president. In a Tuesday meeting with analysts in New York, Bastian said the rapid decline in fuel prices have more than offset a decline in passenger numbers and the slower revenue growth that followed. With oil prices most recently around $50 a barrel, passenger revenue would have to decline more than 20% to lose the cost benefit of cheaper fuel, and not even the terrorist attacks on Sept. 11, 2001, were able to do that, he said. For 2008, post-merger Delta will have paid $100 a barrel equivalent for jet fuel. Shares of Delta was up 3.5% in premarket trading to $8.24.



If that is the case, there better not be any furloughs, and our profit sharing checks should be "YOU---GE"......(huge said by Donald Trump) Fingers crossed!


Bye Bye--General Lee
 
Come on General, you know Anderson would rather burn those profits up by playing some market share games with little Airtran.
 
Come on General, you know Anderson would rather burn those profits up by playing some market share games with little Airtran.

That is a fact, and we supposedly have plans to do just that. That really isn't good news for you guys.
Look for more mainline planes on current RJ routes that compete with you directly.

Bye Bye--General Lee
 
Last edited:
I think we will be OK. We handled your market share games in 2002-2004 just fine with low fuel prices. While you guys have becoming stronger competitors since exiting bankruptcy, there still is a large cost difference and our network is much more diversified today than back in 2002 or 2003. Airtran doesn't need 10% of the plane filled with $1000 business fares to make a profit, not sure if Delta can say the same thing.
 
I think we will be OK. We handled your market share games in 2002-2004 just fine with low fuel prices. While you guys have becoming stronger competitors since exiting bankruptcy, there still is a large cost difference and our network is much more diversified today than back in 2002 or 2003. Airtran doesn't need 10% of the plane filled with $1000 business fares to make a profit, not sure if Delta can say the same thing.

This is all you really need to know:

This message is hidden because General Lee is on your ignore list.

 
I don't post much but during DC9 CQ we were told the 9 was going to ATL to compete againts Airtran. Also said lower oil prices hurt the 9. If prices would of stayed up the 9 would be doing more flying because they would of parked more RJs. With oil dropping the RJs will stay a little longer. They want the 9 to be a lawn dart routes. Up and right back down. Also the 30 out of the desert rumor was true until the guy telling us said he nixed it because he said it should be done only if RNAV was possible. It wasn't going to work out so that rumor is on the back burner. Yes 30 9s out of NYC would be annoying.
 
I don't post much but during DC9 CQ we were told the 9 was going to ATL to compete againts Airtran. Also said lower oil prices hurt the 9. If prices would of stayed up the 9 would be doing more flying because they would of parked more RJs. With oil dropping the RJs will stay a little longer. They want the 9 to be a lawn dart routes. Up and right back down. Also the 30 out of the desert rumor was true until the guy telling us said he nixed it because he said it should be done only if RNAV was possible. It wasn't going to work out so that rumor is on the back burner. Yes 30 9s out of NYC would be annoying.

There were other reasons why Delta stated "out loud" they we MIGHT bring 30 DC9s out of the desert. We should know more about that soon. But, I have heard a lot of DC9s will be competing against Airtran 717s on current RJ routes out of ATL.

Bye Bye--General Lee
 
I think we will be OK. We handled your market share games in 2002-2004 just fine with low fuel prices. While you guys have becoming stronger competitors since exiting bankruptcy, there still is a large cost difference and our network is much more diversified today than back in 2002 or 2003. Airtran doesn't need 10% of the plane filled with $1000 business fares to make a profit, not sure if Delta can say the same thing.

Hey, I am not trying to make you mad, just stating that I have heard that we do have plans to vigorously compete again with you. And, with lower fuel and possibly $5 billion in benefits for 09 alone, I would think that those savings for us could make it tough on many competitors.


Bye Bye--General Lee
 

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