ASACRJCAPT
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- Jun 10, 2006
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Delta posts impressive profit
Main SLC carriers all had a good 2nd quarter
By Paul Beebe
The Salt Lake Tribune
The principal airlines serving Salt Lake City International Airport were the stars of the industry during the second quarter as rising fares, full airplanes and cost-cutting continued to raise most carriers from the red.
Delta Air Lines produced a domestic operating profit of $393 million during the April-through-June period, the best of seven U.S.-based legacy carriers, according to financial information released Monday by the U.S. Department of Transportation.
Delta's domestic operating profit margin was second-best among the biggest
domestic airlines. Only Northwest did better. Both airlines have struggled in bankruptcy for a year, and both have extracted sharp pay cuts from employees.
"The second-quarter results show the improvements we are making in our restructuring, but the challenge will be to continue the momentum into the slower fall travel season," spokesman Anthony Black said.
Operating income and margins measure a company's earning power from ongoing operations. Restructuring charges, interest payments and tax charges are excluded.
Southwest Airlines's margin was the largest among the nation's low-cost carriers. Its $401 million profit was more than seven times greater than No. 2 AirTran.
Atlantic Southeast Airlines (ASA) and SkyWest Airlines, both subsidiaries of St. George-based SkyWest Inc., were the most profitable regional carriers in both profit and margin.
ASA, which SkyWest bought from Delta a week before Delta filed for Chapter 11, developed the regional sector's best margin from a $43 million profit. SkyWest's profit margin was lower, but enough to be ranked No. 2. And its operating income
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of $47 million was bigger.
ASA and SkyWest operate as feeder carriers for Delta. SkyWest is also a feeder for United Airlines.
"We are performing financially just as we had expected when we acquired ASA, so there are no surprises there. SkyWest's numbers are very similar to our plans as well," said Bradford Rich, SkyWest chief financial officer.
In August, Delta sought bids from regional carriers to operate up to 143 regional jets for its Delta Connection service. The move was interpreted as an attempt to pressure some of Delta's regional partners to cut costs. SkyWest and ASA were not included.
Delta will choose the winning bidders by year's end. Any reassigned jets will be switched over to new operators over the following 12 months. Rich said SkyWest has not decided whether to submit bids.
The entire U.S. airline industry reported a domestic operating profit margin of 7.9 percent during the quarter, the largest margin since the second quarter of 2000.
The seven biggest carriers earned a combined profit of $1.3 billion. Their 7.2 percent margin was the first profit since the beginning of 2003.
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Main SLC carriers all had a good 2nd quarter
By Paul Beebe
The Salt Lake Tribune
The principal airlines serving Salt Lake City International Airport were the stars of the industry during the second quarter as rising fares, full airplanes and cost-cutting continued to raise most carriers from the red.
Delta Air Lines produced a domestic operating profit of $393 million during the April-through-June period, the best of seven U.S.-based legacy carriers, according to financial information released Monday by the U.S. Department of Transportation.
Delta's domestic operating profit margin was second-best among the biggest
"The second-quarter results show the improvements we are making in our restructuring, but the challenge will be to continue the momentum into the slower fall travel season," spokesman Anthony Black said.
Operating income and margins measure a company's earning power from ongoing operations. Restructuring charges, interest payments and tax charges are excluded.
Southwest Airlines's margin was the largest among the nation's low-cost carriers. Its $401 million profit was more than seven times greater than No. 2 AirTran.
Atlantic Southeast Airlines (ASA) and SkyWest Airlines, both subsidiaries of St. George-based SkyWest Inc., were the most profitable regional carriers in both profit and margin.
ASA, which SkyWest bought from Delta a week before Delta filed for Chapter 11, developed the regional sector's best margin from a $43 million profit. SkyWest's profit margin was lower, but enough to be ranked No. 2. And its operating income
ASA and SkyWest operate as feeder carriers for Delta. SkyWest is also a feeder for United Airlines.
"We are performing financially just as we had expected when we acquired ASA, so there are no surprises there. SkyWest's numbers are very similar to our plans as well," said Bradford Rich, SkyWest chief financial officer.
In August, Delta sought bids from regional carriers to operate up to 143 regional jets for its Delta Connection service. The move was interpreted as an attempt to pressure some of Delta's regional partners to cut costs. SkyWest and ASA were not included.
Delta will choose the winning bidders by year's end. Any reassigned jets will be switched over to new operators over the following 12 months. Rich said SkyWest has not decided whether to submit bids.
The entire U.S. airline industry reported a domestic operating profit margin of 7.9 percent during the quarter, the largest margin since the second quarter of 2000.
The seven biggest carriers earned a combined profit of $1.3 billion. Their 7.2 percent margin was the first profit since the beginning of 2003.
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Man you are such an @ss jockey for the company. I can't beleive the BS you believe! You are definately PERFECT for the dirtbags that run this company...."they are so perfect...me, myself and I....love this mgmnt...." You are killing us ALL you Jack@ss!
