Delta cost per employee

[wmuflyguy]

speaking only for myself, though I know everyone I talk to agrees, I would let Delta go ch7 before I voted to give another inch on scope. Without scope, the rest of the contract is worthless.

Unfortunately, the pilot group may not have a choice in ch.11, If there is a impasse, i think the compnay can force work rules onto the employees or the judge can just pilfer and change the CBA . I hope it will not come to that, stupid to punish the pilots cause of mismanagement.

 

[410dude]

Unfortunately, the pilot group may not have a choice in ch.11, If there is a impasse, i think the compnay can force work rules onto the employees or the judge can just pilfer and change the CBA . I hope it will not come to that, stupid to punish the pilots cause of mismanagement.

For those of you new to this board, WMUflyguy is the real "TheGuat".
Good to see you again on the board TheGuat. Are you still interning at Comair? Was that Helo pilot in Blackhawk down pissed that you put his picture on your website? Speaking of your website, are you ever going to put it back online? I'm sure the others on this board would love to see it. You have some real competition now with "SmilingPaul" for the biggest tool ever on this board.

 

[AAflyer]

410Dude,

I would certainly put you in the running as well.

AA

 

[FlyBoeingJets]

From the Delta quarterly report:

Comparing the first quarter (March) 2004 to the latest second quarter (June) 2005, the number of DAL employees has fallen by 6.6% from 69,900 to 64,165. Over the same period, gross revenue increased 18.7% from $3.529 billion to $4.190 billion; revenue per employee increased 27% from $50,486 to $64,165; total labor costs decreased 19.3% from $1.609 billion to $1.298 billion; and labor cost per employee decreased 13.7% from $23,018 to $ 19,877.

DAL labor cost per employee is now 7% below that of Southwest. In March 2004, DAL labor cost per employee was 23% above Southwest.


Bye Bye--General Lee

I'm trying to make sense out of all these numbers, General. It's great that revenue is up. But costs per employee don't mean much to me unless the number of employees per aircraft or revenue per employee looks competitive.

I am impressed by some other info from the DAL quarterly report. I like that gross revenue went up $600 million while operating expenses were only up $100 million. Especially since fuel expense shot up $385 million.

Operating Expenses ​

Operating expenses were $4.3 billion for the June 2005 quarter compared to $4.2 billion for the June 2004 quarter. As discussed below, the increase in operating expenses was primarily due to significantly higher fuel prices in 2005 than in 2004. Operating capacity increased 5% to 40.5 billion Available Seat Miles (“ASMs”) primarily due to operational efficiencies from the redesign of our Atlanta hub from a banked to a continuous hub, which allowed us to increase system-wide capacity with no additional Mainline aircraft. Operating cost per available seat mile (“CASM”) decreased 2% to 10.66¢.

Salaries and related costs decreased 18%, or $286 million, to $1.3 billion in the June 2005 quarter. This reflects a 17% decrease from salary rate reductions for our pilot and non-pilot employees and a 7% decline due to lower Mainline headcount. These decreases under our transformation plan were partially offset primarily by a 4% increase related to higher capacity and a 1% rise due to higher seniority-based pay increases.

Aircraft fuel expense increased 58%, or $385 million, to $1.1 billion, with approximately $365 million of the increase resulting from higher fuel prices, which remain at historically high levels. The average fuel price per gallon increased 53% to $1.60 and total gallons consumed increased 3%. Fare increases implemented during the June 2005 quarter in response to rising aircraft fuel prices offset only a small portion of those cost increases. During the June 2005 quarter, we had no significant hedges or contractual arrangements to reduce our fuel costs below market levels, and we have no such arrangements​

 

[FlyBoeingJets]

I'm also impressed that Delta's costs per employee are dropping as revenue per employee rises.

 

[FDJ2]

Now riddle me this, how many employees or pilots per aircraft????

64,000 employees/530 aircraft=120.75employees/aircraft

6700 pilots/530 aircraft=12.64pilots/aircraft

give or take a few.

 

[FlyBoeingJets]

I've got 00'-03' numbers on % pilot cost of total operating revenue and pilots per aircraft.

Working toward getting under 12.5 pilots per aircraft is a good thing. Delta has been at or above 13 since 2001. You were at 15 in 2000. SWA is at or below 10.5. CAL at 11. Airtran and NWA under 12. Alaska and AWA almost 12.5.

AA, UAL, and JetBlue about 14. Coincidentally, it showed ATA over 15 per aircraft in '01 and '03.

The charts I have from 2003 show Delta pilot cost as a % of total operating revenue the best in the industry. It shows Delta even with Alaska about 6.3%. NWA about 7.3. But it shows JetBlue at 12% (trending lower). Airtran and AWA at 9.5. UAL, CAL and SWA at about 8.5%. AA at 8.0. I wonder if this chart is what it is cracked up to be.