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GL credibility in question

  • Thread starter pave driver
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pave driver

GL,

All your posts regarding increased profit sharing due to a decrease in fuel costs are erroneous. Delta loses money with current fuel hedges. Surely you don't just post opinions as facts - do you?

Delta - "Galactically stupid on fuel hedging!"

http://fortune.com/2014/06/02/secret-club-kate-kelly/

"Delta earlier in October, the carrier indicated that it will incur another $350 million in special charges in the third quarter due to a negative impact from fuel hedge settlements."

http://www.forbes.com/sites/greatspe...g-performance/

One-time items for Delta Airlines - Bad fuel hedges costs DAL 1/3 of a billion dollars in the 3rd quarter on 2014.

http://hosted2.ap.org/APDEFAULT/f704...b4225c91e9ea1b

When fuel costs drop, Delta Airlines and United Airlines lose millions!!! AAG does NOT hedge.
 
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Hedging has always been a "gamble" of sorts. If you are significantly hedged and fuel prices do not rise you will show losses on your gamble. Of course that's the simplistic synopsis. In the end hedging mitigates exposure to potentially volatile cost swings in fuel and allows an organization to "fix" fuel costs.

Sooner or later hedging will show some losses. Companies that are intelligent about hedging will come out ahead in the long run.

Recently Southwest has also showed significant losses due to hedging. The losses have been a drop in the bucket when compared to the multiple billions saved on successful hedges. Delta is mitigating the risk of volatile swings in fuel costs by hedging. A dust up in the Middle East could easily send fuel prices skyrocketing and then Delta will be considered geniuses for their hedging strategy.
 
HowardBorden said:
Hedging has always been a "gamble" of sorts. If you are significantly hedged and fuel prices do not rise you will show losses on your gamble. Of course that's the simplistic synopsis. In the end hedging mitigates exposure to potentially volatile cost swings in fuel and allows an organization to "fix" fuel costs.

Sooner or later hedging will show some losses. Companies that are intelligent about hedging will come out ahead in the long run.

Recently Southwest has also showed significant losses due to hedging. The losses have been a drop in the bucket when compared to the multiple billions saved on successful hedges. Delta is mitigating the risk of volatile swings in fuel costs by hedging. A dust up in the Middle East could easily send fuel prices skyrocketing and then Delta will be considered geniuses for their hedging strategy.
Click to expand...

Fuel hedging by definition, is gambling. The house always wins!

http://fortune.com/2014/06/02/secret-club-kate-kelly/
 
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jonjuan said:
So is buying insurance and playing the stock market. Heck, most would agree that becoming a pilot is by definition, gambling.
Click to expand...

True, although careful research, planning, and preparation in building a resume is akin to, "the harder you work, the luckier you get."
 
pave driver said:
GL,

All your posts regarding increased profit sharing due to a decrease in fuel costs are erroneous. Delta loses money with current fuel hedges. Surely you don't just post opinions as facts - do you?

Delta - "Galactically stupid on fuel hedging!"

http://fortune.com/2014/06/02/secret-club-kate-kelly/

"Delta earlier in October, the carrier indicated that it will incur another $350 million in special charges in the third quarter due to a negative impact from fuel hedge settlements."

http://www.forbes.com/sites/greatspe...g-performance/

One-time items for Delta Airlines - Bad fuel hedges costs DAL 1/3 of a billion dollars in the 3rd quarter on 2014.

http://hosted2.ap.org/APDEFAULT/f704...b4225c91e9ea1b

When fuel costs drop, Delta Airlines and United Airlines lose millions!!! AAG does NOT hedge.
Click to expand...


Why the f#ck do you care? Delta appears to be very profitable overall. And who cares about their fuel hedges if the ultimate result leads to big profit sharing among the pilots? Most of my buddies at Delta are VERY happy with their profit sharing - and that's what counts.

Another wind-up thread trying to provoke GL. Thanks for wasting our time!
 
johnsonrod said:
Why the f#ck do you care? Delta appears to be very profitable overall. And who cares about their fuel hedges if the ultimate result leads to big profit sharing among the pilots? Most of my buddies at Delta are VERY happy with their profit sharing - and that's what counts.

Another wind-up thread trying to provoke GL. Thanks for wasting our time!
Click to expand...

Negative Kimosabe. GL has repeatedly stated decreased fuel costs increase profit sharing. This is blatantly false! I am simply pointing out that this is false. I realize facts are hard for you Delta boys to swallow, but the fact is, Delta has peaked and prospective pilots need to have all facts. You need thicker skin when someone points out obvious flaws to your bride, errr... Delta.
 
pave driver said:
Negative Kimosabe. GL has repeatedly stated decreased fuel costs increase profit sharing. This is blatantly false! I am simply pointing out that this is false.
Click to expand...

I absolutely can't believe I'm defending Glee here, but you do realize that if fuel prices fall enough the savings in reduced fuel expense can actually outweigh the losses from unsuccessful hedge positions therefore increasing profit sharing, correct?
 
pave driver said:
Negative Kimosabe. GL has repeatedly stated decreased fuel costs increase profit sharing. This is blatantly false! I am simply pointing out that this is false.
Click to expand...

Hmmm. I wouldn't be so confident in that statement, but you're obviously cocksure. I don't believe DAL has hedged all of their fuel expenses - I forget the percentage basis off hand but recall it was a minority of the total fuel bill. So, it is still possible to have lost money on a hedge and still increases one's profitability through a fuel price decrease as the bulk of your fuel is purchased at spot price.
 
HowardBorden said:
I absolutely can't believe I'm defending Glee here, but you do realize that if fuel prices fall enough the savings in reduced fuel expense can actually outweigh the losses from unsuccessful hedge positions therefore increasing profit sharing, correct?
Click to expand...

This is not true.
 
One time charges are excluded from our profit sharing formula. In fact, our ps is more correctly called pre-tax income sharing. Looks like we may break 15% of w-2 for this year, which means I'm effectively getting paid 177.67 per hour for 2014, not to mention another 15% to my 401k, no match required. Not sure why you think we've peaked. Our debt is way down and going lower, and our retirements are really just getting started. You AA guys really should look into the profit sharing thing.

Of course you aren't really interested in facts that don't fit your "delta sucks" opinion, so enjoy yourself.
 
SpauldingSmails said:
Hmmm. I wouldn't be so confident in that statement, but you're obviously cocksure. I don't believe DAL has hedged all of their fuel expenses - I forget the percentage basis off hand but recall it was a minority of the total fuel bill. So, it is still possible to have lost money on a hedge and still increases one's profitability through a fuel price decrease as the bulk of your fuel is purchased at spot price.
Click to expand...

Please define "cocksure" as I can't find it anywhere in any dictionary or in a Google search. Did you make that term up? Oh, I think you did. What other fabrications can you state here on this web board - we are all so anxiously waiting to see what new English words you can come up with. So, loosing $350 million on 3rd quarter fuel hedging is....hmmm... not a significant percentage as you state? So, you don't "think Delta has hedged all of their fuel expenses." Oh, goood lord, you are lost and just another sheeple to be toyed with. Hey bud, I have a bridge to sell you. Are you game?
 
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