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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.
 

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