Delta - galactically stupid on fuel hedging

[pave driver]

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.

 

[BILL LUMBERG]

(Pointing at the scoreboard)

Galactically kickin a$$ in the profitability and profit SHARING department so thanks for bringing it up.

Next you are going to tell us all you called the huge dip in prices??

 

[pave driver]

(Pointing at the scoreboard)

Galactically kickin a$$ in the profitability and profit SHARING department so thanks for bringing it up.

Next you are going to tell us all you called the huge dip in prices??

Um, yeah...thanks for being a moron in your response. Uh, no, you are not "kickin ass" as there, as you have stated, must be an ass to kick. What ass does Delta kick that you speak of?

 

[BILL LUMBERG]

Not hiring you was the best thing we've done this decade

 

[pave driver]

Not hiring you was the best thing we've done this decade

Never have I ever applied to Delta because I have a brain - you, not so much.

 

[General Lee]

WRONG again Pave!

From the DL CFO in the Q3 Conference Call: (via Seeking Alpha)

"The refinery made a $19 million profit for the quarter which lowered our fuel price by $0.02 per gallon. The refinery?s profit represents a $16 million improvement over the same period last year. A key driver of the profitability was our domestic crude initiative as we processed 100,000 barrels per day of domestic crude during the quarter. We are on-pace to achieve our goal of averaging 70,000 barrels per day for the full year, which should increase to 100,000 barrels per day in 2015. For the December quarter, we?re expecting to pay $2.69 to $2.74 per gallon for fuel including the refinery and hedge impacts. This includes the projected profit of the refinery of $20 million driven by widening crack spreads. The refinery team is running a great operation and continuous to generate meaningful year-over-year improvements there.

At current crude prices, we?ll have approximately $100 million of hedge losses in the December quarter while our 2015 hedge book is near breakeven with a solid amount of protection at current price levels. Even with these hedge losses, we?ve participated in 80% of the price declines since late June. With the expected December quarter losses, our hedges reduced our overall fuel costs by roughly $160 million for 2014.

Turning to cash, our strong cash generation continued to differentiate us from the industry. This quarter we generated $1.3 billion of operating cash flow and reinvested $411 million into the business primarily related to fleet. In the fourth quarter, we expect to spend $800 million on capital expenditures which will bring our total CapEx to approximately $2.3 billion for the year. With another quarter of solid cash generation ahead of us, we?re on-track to produce $3.5 billion of free cash flow this year. We used that to continue to strengthen the balance sheet and return cash to shareholders with our $910 million of free cash flow during the quarter. Our adjusted net debt is down to $7.4 billion which held lower our interest expense by $60 million versus last year.

We have a clear line of site to achieve our $5 billion adjusted net debt targeted 2016. During the September quarter, we also returned $325 million to shareholders through dividends and buybacks. We paid out $75 million in dividends as we increased our dividend by 50% to $0.09 per share. In addition, we repurchased $250 million in shares during the quarter. Once again I want to thank the entire Delta team for another record breaking quarter. Our performance this quarter and throughout this year shows what we can do when we all work together to drive change and deliver."





Bye Bye---General Lee

 

[General Lee]

Here's the one you need to read from above Pave:


"At current crude prices, we'll have approximately $100 million of hedge losses in the December quarter while our 2015 hedge book is near breakeven with a solid amount of protection at current price levels. Even with these hedge losses, we've participated in 80% of the price declines since late June. With the expected December quarter losses, our hedges reduced our overall fuel costs by roughly $160 million for 2014."



Bye Bye---General Lee

 

[B6Driver]

Not hiring you was the best thing we've done this decade

Sometimes its best not to reply, This is one of those times.uke:

 

[Bringupthebird]

Oil prices have and will continue to climb more than decrease.

 

[180ToTheMarker]

Never have I ever applied to Delta because I have a brain - you, not so much.

So why do you care about Delta's hedging situation?

 

[BILL LUMBERG]

Sometimes its best not to reply, This is one of those times.uke:

You are right B6.....the cesspool always lets its creme rise to the top.

Lesson learned

 

[xjhawk]

Um, yeah...thanks for being a moron in your response. Uh, no, you are not "kickin ass" as there, as you have stated, must be an ass to kick. What ass does Delta kick that you speak of?

I believe the billions of dollars in profit Delta is making is proof enough they have a good handle on the industry and how to successfully manage a company. That and their employees are generally happy and benefiting financially is another point. Because they lost on fuel hedges when historically fuel hedges actually work is just a small bump in the road for Them.

 

[Scoot 11]

Um, yeah...thanks for being a moron in your response. Uh, no, you are not "kickin ass" as there, as you have stated, must be an ass to kick. What ass does Delta kick that you speak of?

Sorry you didn't get hired. Have you considered Mesa?
Sounds more on your level sport!

 

[pave driver]

Sorry you didn't get hired. Have you considered Mesa?
Sounds more on your level sport!

Oh good lord...I wouldn't tell any one of my squadron mates to apply to Delta as they have a brain. I have never applied to Delta as I thought their bases were and are a horrible place to raise a family. Atlanta? Hell no. Detroit? No, unless you want to get shot! Mormon Salt Lake town, good people by the way - not a chance unless you like isolation and a shatty town. Oh, enjoy Delta bases - no thanks. Old crappy aircraft, they look pretty as a pig with lipstick though, flying with a lot of pilots with a stick up their backside? Uh, no thanks. I could go on but I have a beer to drink.

 

[Scoot 11]

Oh good lord...I wouldn't tell any one of my squadron mates to apply to Delta as they have a brain. I have never applied to Delta as I thought their bases were and are a horrible place to raise a family. Atlanta? Hell no. Detroit? No, unless you want to get shot! Mormon Salt Lake town, good people by the way - not a chance unless you like isolation and a shatty town.

Yes, because ********************cago, and philthy are so much better.
And dallASS??!!! Nothing spells loving like marrying your cousin!

Oh, enjoy Delta bases - no thanks. Old crappy aircraft, they look pretty as a pig with lipstick though, flying with a lot of pilots with a stick up their backside? Uh, no thanks. I could go on but I have a beer to drink.

Lipstick on a pig? You have no problem saying, "I love you mom."
And the stick up thier backside? I'm sure st. nic can help ya out there.
Pave....You're Mesa material from the get go!
When you find that DL pilot that nailed your old lady, I hope it helps you find sleep at night.
Until then, keep in touch with yourself!

 

[pave driver]

I was nominated into the Order of Daedalians and can go to any airline I choose. The HR departments at all airline know I am highly valued. I turned down Northwest, Emirates, Cathay Pacific, Southwest, UPS and FedEx. Oh yes indeed I did, Ya see, Delta, in my opinion sucked so bad for many reasons that I never bothered to apply. I did the hard research so many do not - like you apparently. When my buds told me over a decade ago to go to Southwest as they had they best pay at the time, I attended the meetings and found it not a place to call home. I never wanted to fly a 737 for the rest of my life - domestically. To each their own of course. I have good life long friends there. Anyway, I chose the best airline for the long haul - American.

 

[SpauldingSmails]

Pave, at least try and keep your lies straight - you didn't "turn down NWA."

If Northwest still existed, it would have been my first choice! You guys are top-notch. Delta, not so much.

Remember your promise Pave?

The Promise of a Daedalian

In the presence of Almighty God and these witnesses, I promise I will forever abide by the Tenets of the Order of Daedalians:

The Tenets of the Order of Daedalians
First: To Place Nation Above Self (Patriotism)
Second: To Be Worthy of the Trust and Confidence of a Fellow Daedalian (Personal Integrity and Character)


From: www.daedalians.org/

Your inability to keep your story straight seems to call your entire persona in question.

 

[SpauldingSmails]

As for being nominated into this Order... looks like you just fill out the paperwork and you're on your way.

www.daedalians.org/privacy.htm

 

[Scoot 11]

Pave, at least try and keep your lies straight - you didn't "turn down NWA."


Remember your promise Pave?

The Promise of a Daedalian

In the presence of Almighty God and these witnesses, I promise I will forever abide by the Tenets of the Order of Daedalians:

The Tenets of the Order of Daedalians
First: To Place Nation Above Self (Patriotism)
Second: To Be Worthy of the Trust and Confidence of a Fellow Daedalian (Personal Integrity and Character)


From: www.daedalians.org/

Your inability to keep your story straight seems to call your entire persona in question.

LMFAO!
Shack! Could have gone anywhere, but chose to serve cokes for Mesa Grand! Aka US Airways!

 

[BILL LUMBERG]

Wait a minute.....Tanker Clown has changed his name to Pave.....

This all makes sense now