Delta Air Lines Announces First Quarter Results

[RedDogC130]

http://finance.yahoo.com/news/Delta-Air-Lines-Announces-prnews-1820727247.html?x=0&.v=1

 

[ACL65PILOT]

Those were the street estimates.

 

[JonnyKnoxville]

I would say the synergies are working.

Cash position is up, debt is down, they bought two 777s with cash and are on track to pay 1 billion toward pension funding this year. The real killer is their overall debt seems high and the amount of money they pay in interest also seems like a large amount. But at least they are paying it down and not increasing their debt position.

It seems to me that they are trying not to show a profit while at the same time shoring up their balance sheet.

 

[scarlet]

How many quarters has Delta shown a profit since 2001?

 

[ACL65PILOT]

Two. Since 2001

 

[ACL65PILOT]

Jonny, paying down debt needs to be done for many reasons. One, we need the War chest, and two our debt service (money we pay per year in interest) is about 2.3 billion. That is the pilot pay cuts in 1113C.
Their stated plan is to pay our debt down from 17 billion to 10 billion in the next 2-2.5 years. That is aggressive, and very smart. The debt that will be paid off is the high interest debt, so it will be safe to assume that or debt service will be cut in about half. That alone will cover about six or seven 777's a year, or 85-90% of C2K+. (Not saying it will go to that, just using those examples for illustration purposes.)

FWIW, they want more 777 but there are no production slots open yet.

 

[JonnyKnoxville]

I think they are managing the balance sheet very well. I would agree that their debt pay down is the right move. Just wish I could be on the inside rather than the outside looking in. By the way, any more talk of stapling wholly-owned regionals to the bottom of the list?

 

[Scope out RJ's]

I think they are managing the balance sheet very well. I would agree that their debt pay down is the right move. Just wish I could be on the inside rather than the outside looking in. By the way, any more talk of stapling wholly-owned regionals to the bottom of the list?

Johnny:
That was an option, but you can thank your pals joemerchant, n2264j, and some of the other girls from the rjdc from that not happening!

 

[JonnyKnoxville]

Johnny:
That was an option, but you can thank your pals joemerchant, n2264j, and some of the other girls from the rjdc from that not happening!

Long-term grudges are always the best reason to make strategic business decisions going forward [sarcasm]. For your information, the people who supported the RJDC are the same people who do not want a staple. They are senior regional lifers and only would stand to lose from a staple. Everyone else on all list, and the profession as a whole, would benefit.

But you just keep redrawing that line in the sand on scope while the rest of us figure out how to take the whole beach (line borrowed form ACL65).

 

[Tanker Clown]

Delta loses another couple hundred million bucks. What else is new? These guys make Amtrack look like a solid business.

I'm sure that next quarter will be much better after all the cash from Song starts flowing in!