Check out quarterly ancillary revenue by airline - making serious BUCK$

[Heavy Set]

Looks like Delta is making some serious cash through ancillary revenue - $814 million and growing in one quarter alone (17.5% increase YOY in Q3 2011). I am betting the Delta pilots would be pleased considering potential upcoming negotiations...

Notice JB ($54M), SWA ($232M) and even UAL/CAL ($330M total) are not making as much on a relative basis (although no surprise with SWA not charging for bags).

Click here: http://www.bloomberg.com/news/2012-...ry-fee-revenue-summary-table-.html?cmpid=yhoo


I tried to post the numbers grid but it did not line-up well...

NOTE: Ancillary fees include baggage fees, reservation change fees andmiscellaneous operating revenue, including pet transportation, sale offrequent flyer award miles to airline business partners and standbypassenger fees. Revenue from seating assignments and on-board sales offood, drink, pillows, blankets, entertainment, or any other ancillaryitems are reported as Transport Related Revenue and cannot be identifiedseparately.

 

[pilot772]

Looks like Delta is making some serious cash through ancillary revenue - $814 million and growing in one quarter alone (17.5% increase YOY in Q3 2011). I am betting the Delta pilots would be pleased considering potential upcoming negotiations...

Notice JB ($54M), SWA ($232M) and even UAL/CAL ($330M total) are not making as much on a relative basis (although no surprise with SWA not charging for bags).

Click here: http://www.bloomberg.com/news/2012-...ry-fee-revenue-summary-table-.html?cmpid=yhoo


I tried to post the numbers grid but it did not line-up well...

NOTE: Ancillary fees include baggage fees, reservation change fees andmiscellaneous operating revenue, including pet transportation, sale offrequent flyer award miles to airline business partners and standbypassenger fees. Revenue from seating assignments and on-board sales offood, drink, pillows, blankets, entertainment, or any other ancillaryitems are reported as Transport Related Revenue and cannot be identifiedseparately.

JB allows for the first bag to be checked for free, not surprised that the revenue is lower. JB and SWA are in a good place since checked bag fees have become accepted by the flying public they can instantly produce a lot of income if they so please down the road.

 

[kf4amu]

"making money" implies a profit, and we know the airline industry does not make profits...so it's a poor choice of words.

 

[On Your Six]

"making money" implies a profit, and we know the airline industry does not make profits...so it's a poor choice of words.

Delta made a $1.25 billion profit last year, and gave out more than a quarter billion dollars in profit sharing to employees less than a month ago. So, the words are correct. Thanks to capacity pullbacks by almost every airline, profits will continue for awhile, sans a total meltdown like 9-11 again. Hopefully the trend does continue so wages can also be pulled up across the board at all airlines.


Godspeed!


The OYSter

 

[screech]

Delta made a $1.25 billion profit last year, and gave out more than a quarter billion dollars in profit sharing to employees less than a month ago. So, the words are correct. Thanks to capacity pullbacks by almost every airline, profits will continue for awhile, sans a total meltdown like 9-11 again. Hopefully the trend does continue so wages can also be pulled up across the board at all airlines.


Godspeed!


The OYSter

Holy crap!! Something we can all agree on. ON FI.com no less. Profits=healthy companies. Healthy companies= better profit sharing.
Better profit sharing= happier, more productive employees (usually).
More productive employees=more profits(often but not always).

Airlines making money and having war chests and emergency funds= good business sense.

 

[N1atEcon]

What was the profit sharing percentage each employee received at Delta?

 

[On Your Six]

What was the profit sharing percentage each employee received at Delta?

I think it was 4.85% of your 2011 W2, for all employees. It came out to about $265 million. The year prior was 5% I believe, but 2011 had a rough quarter due to the Japan earthquake/tsunami.


Godspeed!


The OYSter

 

[kf4amu]

Delta made a $1.25 billion profit last year, and gave out more than a quarter billion dollars in profit sharing to employees less than a month ago. So, the words are correct. Thanks to capacity pullbacks by almost every airline, profits will continue for awhile, sans a total meltdown like 9-11 again. Hopefully the trend does continue so wages can also be pulled up across the board at all airlines.


Godspeed!


The OYSter

Oh wow a 3 percent profit margin, the industry is fixed!

I agree that it's better than billions in losses but too many cheerleaders on here don't realize that the industry still financially blows even without factoring in the wasted capital from the multiple bankruptcies. Show me steady profits over 10 years and I'll start to change my mind.

 

[Green]

Making 30% less than we did 12 years ago yet now we get a 5% profit share. Better than a kick in the face but we can't forget that mgt still has us bent over the barrel.

 

[AirMorgan]

Making 30% less than we did 12 years ago yet now we get a 5% profit share. Better than a kick in the face but we can't forget that mgt still has us bent over the barrel.

True statement. I'd be very interested to see the pay rate for management 12 years ago. I wonder if they are 30% lower today?