Delta Connection EMB175s

[Voice Of Reason]

I know that LOA's have been looked at. I know a few that would take them.
As one very famous furloughee on here pointed out, in 2001 they offered LOA's and about 50 took them, so they do not see them as that successful.

Hiring is possible next year. We will see how this new attack on the industry works out of the next few months.

How about fuel? How is Delta protected this summer in case there is a repeat of last summer's skyrocketing prices? (Looks like prices are already making a small attempt to test the waters in heading that direction by summer). Are they hedged at a particular price?

 

[ACL65PILOT]

With over 5 billion in the bank, I am sure that if fuel goes back up, we will have an effective hedge in place that will equate to the mid to upper 50's.

 

[General Lee]

How about fuel? How is Delta protected this summer in case there is a repeat of last summer's skyrocketing prices? (Looks like prices are already making a small attempt to test the waters in heading that direction by summer). Are they hedged at a particular price?

I think we have learned our lesson a bit on hedging, but of course last Summer no one really thought that oil was going to drop $100 a barrel within 6 months. I have heard our Q1 numbers (the $743 million loss) will be the worst quarter this year with the hedges, and it gets better for us as the year progresses. I have heard that we have hedged a good chunk at the lower numbers lately, (maybe 30%) and that is probably a prudent thing to do. Could oil go to single digit numbers? I doubt it, but we probably thought the same thing last Summer at $140 a barrel.

Bye Bye--General Lee

 

[JumpersAway]

Oil is not going to get much cheaper than it is now- ever.............OPEC will cut, cut, cut some more, in order to get it around 70 a barrel.

 

[MCOE175]

I think we have learned our lesson a bit on hedging, but of course last Summer no one really thought that oil was going to drop $100 a barrel within 6 months. I have heard our Q1 numbers (the $743 million loss) will be the worst quarter this year with the hedges, and it gets better for us as the year progresses. I have heard that we have hedged a good chunk at the lower numbers lately, (maybe 30%) and that is probably a prudent thing to do. Could oil go to single digit numbers? I doubt it, but we probably thought the same thing last Summer at $140 a barrel.

Bye Bye--General Lee

What percentage and how far out can DAL hedge do to their credit rating?
Aren't they in the same boat as US because of BK?

 

[Sinca3]

I've heard we can and have hedge through 2012....

 

[MCOE175]

Maybe DAL can hedge that far out but at what percentage... I know that their credit rating will not allow a high percentage... SWA with their rating can hedge 80% or more. They are the only ones that can do that.

 

[FBN0223]

Maybe DAL can hedge that far out but at what percentage... I know that their credit rating will not allow a high percentage... SWA with their rating can hedge 80% or more. They are the only ones that can do that.

Hedging fuel has been a bad gamble for many airlines recently. So been the only airline that can hedge 80% or more is really not an advantage unless you feel lucky.