DAL predicts more losses

[flaps30]

Delta Sees Lower Travel Demand, 2003 Loss
Thursday January 16, 11:02 am ET


CHICAGO (Reuters) - Delta Air Lines Inc. (NYSEAL - News) on Thursday said it foresees lower demand for air travel through at least mid-2004 and ongoing financial losses in both the first quarter of 2003 and the full year overall.
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"As we said, we've projected a loss for the upcoming quarter," said Chief Executive Leo Mullin on a conference call with analysts and media. "I would add that there is an expectation here at Delta that we would have a loss for the year, I think most of you would anticipate that."

Mullin also said potential war with Iraq is casting a "special pall" over aviation as lower bookings reflect passengers' nervousness. Oil prices have spiked and may significantly affect results going forward, Mullin said, despite some hedging programs in place.

The Atlanta-based airline earlier reported a net loss of $363 million for the 2002 fourth quarter, but its operating results beat Wall Street estimates. Delta's fourth-quarter cost per available seat mile fell slightly and revenue rose more than expected on a strong December holiday period, boosting results higher than consensus estimates.

 

[flaps30]

DAL aircraft deliveries

Delta Air Comments on Aircraft Deliveries
Thursday January 16, 9:50 am ET


WASHINGTON (Dow Jones)--Delta Air Lines Inc. has 51 aircraft on firm order for 2003 and 23 on order for 2004, the company said in a letter to analysts dated Thursday.
The airline doesn't have any aircraft on option for delivery in 2003, but it does have 43 aircraft on option for 2004, according to the letter submitted in a Form 8-K filing with the Securities and Exchange Commission on Thursday.

The aircraft that are on order for 2003 are 31 CRJ-100/200 and 20 CRJ-700 made by Bombardier Aerospace, a unit of Bombardier Inc. (BBD.B).

The CRJ-200 is a 50-passenger aircraft and the CRJ-700 is a 70-passenger aircraft.

The filing didn't indicate how much the Atlanta company expects to make in payments for the aircraft during 2003.

 

[*42*]

I don't understand why these airlines keep buying RJs. Why don't they just put new engines on their DC-9s? DC-9 is a great airplane.

 

[capt_zman]

hopefully you're kidding. If not, when was the last DAL DC9 that you saw and what kind of herb was in your mouth at the time?

 

[greg20]

*42* said:

I don't understand why these airlines keep buying RJs. Why don't they just put new engines on their DC-9s? DC-9 is a great airplane.

Are you serious? Just sticking on some new engines doesn't make an otherwise old airplane new again, with the efficiency and other associated benefits of today's RJs! Granted the relatively new 717-200s (née MD-95s) grew from the DC-9 family but there's a whole lot more to it than just slapping on some new BR715s.