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DAL lost 1.4 billion, Spin it general lee

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These clowns took pay cuts for this....


For the recent quarter, the Atlanta carrier (DAL:
Last: 7.95-1.98-19.94%
said it lost $1.4 billion, or $2.11 a share, compared to a loss of $70 million, or 18 cents a share, in the year-ago period. Delta was hit by a $900 million non-cash charge related to employee equity awards in the most recent period, as well as a $91 million loss on out-of-period fuel hedges.

Wow, a $91 million loss, and the rest a non cash charge. Not bad in one of the worst quarters in history for even Southwest. Oil was still coming down from it's historic rise, we were hedged poorly (we thought they were good hedges compared to the July, 08 high of $140 a barrel), and the economy was starting to unravel. I would say that isn't too bad, but not great.

9Rj9,

How is UPS doing? Profitable for sure, but things in your arena aint great. You parked the last of your 742s (we are about to do the same), and a lot of your DC8s and some 757s are going to be parked on "standby", losing many runs. Not as many over age 60 guys flying for you will leave anytime soon thanks to the poor economy, and your friends at Fedex have threatened possible furloughs. (that can mirror what might happen to you) Enjoy it too. As a major US airline, I think we are positioned better than most to weather this storm. There is the spin for you.

Bye Bye---General Lee
 
General, it's $91 Million no fuel. Looks like about $500 mil operating loss.

Gup

I don't know where you are getting your info, but here is an article describing what occured:

CHICAGO (Reuters) - Delta Air Lines the world's largest airline, reported a quarterly loss on merger costs and fuel hedge losses.

The airline, which bought Northwest Airlines late last year, said on Tuesday that its fourth-quarter net loss widened to $1.4 billion, or $2.11 per share, from $70 million, or 18 cents per share, a year earlier, before the merger.


Special items included a more than $900 million charge related to broad-based employee equity awards, and a $91 million loss on out-of-period fuel hedges.
Excluding one-time items, the company said it had lost $340 million, or 50 cents per share.
Delta merged with Northwest to generate more efficient operations and savings to help offset its fuel bill. The industry was battered in 2008 by high energy costs and later by economic weakness that drained travel demand.
(Reporting by Kyle Peterson; Editing by Lisa Von Ahn)




Bye Bye--General Lee
 
So it was $340 million operating loss for 4Q 08.

I guess that is what it says.


Here is the same people who wrote that article finishing another article dealing with the loss:


Like rivals AMR Corp (AMR.N) and UAL Corp (UAUA.O), which reported losses last week, Delta complained of economic weakness that is eroding travel demand and forcing airlines to cut the number of seats for sale. But Chief Executive Richard Anderson was optimistic.
"Despite the difficult economic environment, we expect to be solidly profitable in 2009, driven by lower fuel costs, capacity discipline, and merger synergies," he said in a statement.
The airline industry was battered in 2008 by high fuel prices and later by economic weakness. Downsizing helped carriers bolster fares while travel budgets and demand shrank.
Delta had an advantage over its peers, however, as its merger with Northwest allowed it to make its operations more efficient.
Delta, which slashed its domestic capacity by 11 percent in the second half of 2008, said it would cut total mainline capacity by another 6 percent to 8 percent in 2009. The reduction will require the removal of 40 to 50 mainline aircraft from its fleet. (RJs or mainline planes? We know 13 742s will probably be parked, but have heard nothing other than RJs for the rest)

"They're definitely taking capacity down probably more than what people thought they would be doing," said Helane Becker, airline analyst at Jesup & Lamont Securities.
Airlines are braced for a particularly tough first quarter, she said, but the outlook improves later in the year.
"We think the second half of the year will be better," she said. "And I think that's the case for Delta."

RESULTS

Delta said its fourth-quarter net loss had widened to $1.4 billion, or $2.11 per share, from $70 million, or 18 cents per share, a year earlier, before the merger.
The results, however, feature one-time items, including a charge of more than $900 million related to broad-based employee equity awards, and a $91 million loss on out-of-period fuel hedges.
Top carriers have reported losses on these hedges as the price of jet fuel plummeted in the second half of 2008.

Excluding one-time items, the company said it had lost $340 million, or 50 cents per share. Although, fuel prices have fallen since July, Delta said its fourth-quarter fuel bill was 69 percent higher than it was a year earlier.

The company reported operating revenue of $6.7 billion, a 43 percent gain over the comparable period. Delta ended the quarter with $6.1 billion in liquidity.

Delta shares fell 4.3 percent to $9.50 in trading before the market opened. (Reporting by Kyle Peterson; Editing by Lisa Von Ahn)




Bye Bye--General Lee
 
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Someone just explain to me how Allegiant is doing so great?
 
Someone just explain to me how Allegiant is doing so great?

Here is a quote from another forum. Thought it was a good explanation:

Allegiant is an interesting case. They use cheap (capital cost) airplanes so they can afford to park the airplane a couple days a week when demand is weak. When they fly, they fly nearly full. When they can't fill the airplane, they don't fly. Slow season? Cut flights for a month or two until the demand picks up.

Other airlines have very high fixed costs on their newer airplanes so they have to keep them moving even when they can't fill them. They lose money but they lose less by flying them with lighter loads, and/or lower fares to fill the seats, than they would if they parked them.

 
. (RJs or mainline planes? We know 13 742s will probably be parked, but have heard nothing other than RJs for the rest)
Bye Bye--General Lee

I think it plainly states 40-50 MAINLINE aircraft. I would say the continued parking of 757/767's that are due heavy MX. I know of atleast 3 M88's that have been parked as I know the crew that flew the to Victorville, CA.
 
Rumored at NATCO DAL is going to park 15-17 757's til demand improves. NWA probably 2-4 757's and bring 10-20 DC-9's out of the sandbox.
 
Rumored at NATCO DAL is going to park 15-17 757's til demand improves. NWA probably 2-4 757's and bring 10-20 DC-9's out of the sandbox.

By the looks of the May APA, I would say that rumor has some validity. Lots of DC-9 awards and some B757 displacements.
 
We still have firm orders for 737-700s and 777s (with augmented crews). Maybe that will midigate any pending furloughs. Fingers crossed...

not to mention we are increasing the utilization of the aircraft on property and eventually the nwa side will be increased to meet the DAL staffing model.(which is already starting)
 
from another forum

Capacity Discipline
In 2008, Delta demonstrated its firm commitment to capacity discipline and its ability to quickly reduce
fixed and variable costs associated with reduced capacity. Delta led the industry in early 2008 in
responding to high fuel prices and the weakening demand environment, resulting in a reduction in
domestic capacity of 11% in the last six months of 2008. Delta’s flexible and cost efficient fleet is a
unique tool that allows the company to reduce capacity quickly. In 2009, the company plans to remove
40-50 mainline aircraft from the fleet as it eliminates the fixed costs associated with its 6 – 8% system
capacity reduction. In addition, in January 2009, Delta offered its second voluntary workforce reduction
program in 12 months to more closely align its staffing with lower capacity levels. Delta will continue to
monitor the demand environment and has full flexibility to further reduce capacity if warranted."

The 40-50 mainline aircraft are the reductions that were already announced - the Delta summary of their press release said:

"Delta will continue to be a leader in capacity discipline. As a result of declining global demand, we announced in December a 6 – 8% system capacity reduction for 2009, including an 8 – 10% decrease in domestic and a 3 – 5% decrease in international capacity. "
 
I have the numbers of what is going to be parked. It is mostly 757's and they are coming from both side, some ER's and a few 88's. We are selling or will sell off some of the older 320's. Also the 742's will be gone in the next 12 months.
None of this is new info, just a restatement of what has been previously announced.
FWIW, I think we need to further cut capacity. The flights are wide open. As in over 100 seat a flight. Now that is on most not all routes.
Few days ago DFW was 100+ avail on every flight. LAX had a 767 leave with only 75 seats filled.
What we see come presidents day weekend will determine how we operate in the 2nd and 3rd quarter.
 
DAL is still forecasting a 1 billion dollar profit for 2009.

And why are they still charging for checking bags and select seating? Pretty disgusting how the airlines continue to nickel and dime consumers when the economy is in the state it's in. The high price of oil was initially the reasoning behind baggage, seat, and beverage/snack fees by the airlines. What's the excuse now?
 
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If you read the 8-K you would see that these pricing practices brought in ~127 million this last quarter.
 
Furloughs coming?

Depends on if we cut more than the 50 mainline jets that are already announced. My assumption would be that any more cuts would lead to furloughs. They may opt to keep the staffing where it is for the sake of all of the training that will be going on in the next few years.
Time will tell.

On a side note, I am not trying to get liquid, yet...
 

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