DAL-May operating report

[spinproof]

ATLANTA, June 29, 2006 (PRIMEZONE) -- Delta Air Lines (Other OTCALRQ) today filed its Monthly Operating Report for May 2006 with the U.S. Bankruptcy Court for the Southern District of New York.

Key points include: -- Delta's May 2006 net loss was $16 million. -- May 2006 net income before reorganization items was $8 million. -- As of May 31, 2006, Delta had $2.7 billion of unrestricted cash, cash equivalents and short-term investments.​

Delta reported a net loss of $16 million in the month of May 2006, compared to a net loss of $140 million in May 2005. Delta's net income before reorganization items was $8 million for May 2006, a $148 million improvement versus the net loss in the prior year period.

As of May 31, 2006, Delta had $3.8 billion of cash, cash equivalents and short-term investments, of which $2.7 billion was unrestricted. ​

Restructuring Progress​

In September 2005, Delta announced a comprehensive restructuring plan intended to deliver an additional $3 billion in annual financial benefits through revenue improvements and cost reductions by the end of 2007. During the month of May, the progress that Delta has made is reflected by: -- A reduction in operating costs to achieve a mainline non-fuel CASM(1) of 6.95 cents for the month, a 2.8 percent decrease year over year.​

This unit cost improvement was achieved despite a 10.9 percent reduction in mainline capacity. -- Improved consolidated passenger unit revenue of 10.77 cents, an 18.5 percent increase compared to May 2005.​

``Despite a 35 percent increase in fuel prices year over year, May's results represent our second consecutive month of profitability, excluding the impact of reorganization items,'' said Edward H. Bastian, Delta's executive vice president and chief financial officer.​

``While our improved results in traditionally high-traffic months are an encouraging sign that our restructuring plan is working, the continuing high price of fuel remains a significant risk factor to our restructuring plan and drives the increased urgency in completing our restructuring objectives.''​

 

[9rj9]

Check it.....

Delta's May 2006 net loss was $16 million. Funny how they spin this into net income of 8 million. NET is NET, its what you end up with after everyone has had their hand in your pocket. Delta Net loss was $16 million, period.
Jaw dropping results !!!

 

[GogglesPisano]

The important thing is, had they not been in bankruptcy in May, they would have made $8M. They are operationally profitable.

 

[FDJ2]

The important thing is, had they not been in bankruptcy in May, they would have made $8M. They are operationally profitable.

DAL also inproved its unrestricted cash position by $200M.

 

[Dangerkitty]

Delta's May 2006 net loss was $16 million. Funny how they spin this into net income of 8 million. NET is NET, its what you end up with after everyone has had their hand in your pocket. Delta Net loss was $16 million, period.
Jaw dropping results !!!

They are spinning nothing. Going through Bankruptcy is quite an expensive endeavor. Net income or net loss before and after Bankruptcy costs are figured into the equation would be very important to future investors.

 

[Bavarian Chef]

DAL also inproved its unrestricted cash position by $200M.

Then wouldn't that mean they made 184 million? No flame, just curious ... is that from investments? Why is it not factored in?

 

[Hutchman]

Then wouldn't that mean they made 184 million? No flame, just curious ... is that from investments? Why is it not factored in?

No, it just means they they finaced something resulting in more cash in exchange for a new liability. Yes they have more cash, but they have more debt as well.

 

[Bavarian Chef]

Thanks.