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Delta estimates $5 billion pre tax profit in 2015, WSJ article

General Lee

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Delta Projects $5 Billion in Pretax Income Next Year
Tumbling Fuel Prices Seen Benefiting Airline

By CHELSEY DULANEY
Dec. 11, 2014 9:10 a.m. ET

Delta Air Lines Inc. on Thursday projected its pretax income will jump 11% to $5 billion next year, as the airline expects to benefit from lower fuel prices and increasing capacity.

As part of its investor-day presentation, Delta said low fuel prices could result in a $1.7 billion benefit for the company next year. Delta expects its fuel prices to be between $2.40 and $2.50 a gallon next year, down from a projected $2.63 to $2.68 a gallon in its December quarter.

Delta said it expects its system capacity to grow 2% next year, driven by a 3% increase domestically. Its stake in Virgin Atlantic Airways Ltd., which gives Delta a strong position at London's Heathrow Airport, could also generate $200 million for Delta in 2015.

Delta, the third-largest U.S. airline by traffic, has posted strong passenger traffic recently on an improving domestic performance, especially in Atlanta and Seattle.

Five of the largest U.S. airlines reported soaring profits for the September quarter and said they expect similar success through the rest of this year, aided by falling fuel prices and continued strong demand for travel. These results dashed recent worries that the U.S. airline industry's turnaround was faltering.

For its part, Delta had reassured investors by reporting strong third-quarter results, excluding one-time items, and predicting a record fourth quarter.

In the long term, Delta is targeting 10% to 15% in annual per-share earnings growth. Analysts polled by Thomson Reuters project 29% growth in per-share earnings for next year.




Thank Gawd for employee profit sharing.....




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Flopgut

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In all seriousness, this is great!! In fact great for everyone. American won't be too far behind, and United (despite mgt best efforts otherwise) won't either. Question I have: What will our govt do about it? Anyone recall congressional hearings where legacy airline pilot salaries were questioned/admonished? "Have you seen those salaries" one said in open testimony. It's great when LCC and regionals do well, but Uncle Sam is not the least bit in favor of legacies doing well. That's a fact legacy pilots have lived with. It's great that ALPA has had this epic battle with NAI to create the illusion they're essential to us. But I do think it's time to get out in front of the pendulum that is about to swing heavily in our favor. Stay out of our contract negotiations and stop playing with the free market. Whatever gains legacy labor can get back, they [Congress] need to live with it. They no less take care of themselves.
 

General Lee

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In all seriousness, this is great!! In fact great for everyone. American won't be too far behind, and United (despite mgt best efforts otherwise) won't either. Question I have: What will our govt do about it? Anyone recall congressional hearings where legacy airline pilot salaries were questioned/admonished? "Have you seen those salaries" one said in open testimony. It's great when LCC and regionals do well, but Uncle Sam is not the least bit in favor of legacies doing well. That's a fact legacy pilots have lived with. It's great that ALPA has had this epic battle with NAI to create the illusion they're essential to us. But I do think it's time to get out in front of the pendulum that is about to swing heavily in our favor. Stay out of our contract negotiations and stop playing with the free market. Whatever gains legacy labor can get back, they [Congress] need to live with it. They no less take care of themselves.

I agree, and a pilot shortage (or salary shortage as ALPA puts it) will take flights away from some Congressmens' districts, making them realize that higher pilot salaries may create interest again by college kids to possibly get into the business. Nobody really wants to get $100K+ debt and then wait a year or two to get an RJ job for $22K a year. That ain't gonna work...


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Jetjockey

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Delta is the best airline ever....nothing can go wrong now! GO TEAM!
 

General Lee

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Delta is the best airline ever....nothing can go wrong now! GO TEAM!

I agree Jetjockey! Yay! Especially when it comes to profit sharing, employee pay packages, employee groups working together, and management direction. That doesn't mean something can't go wrong, but so far so good. Well stated.



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Flyarcticcat

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So when does Delta's contract talks start and whats the rumor on how long its going to take?
 

General Lee

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So when does Delta's contract talks start and whats the rumor on how long its going to take?

Openers start in early Spring, with a new contract becoming amendable Jan 1st, 2016. So far RA has never gone past the amendable date of any pilot contract (at NWA or at DL), and he probably knows that the AA pilots have a "me too" clause starting in 2016.


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DieselDragRacer

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Delta is the best airline ever....nothing can go wrong now! GO TEAM!

Dang right! Screw them creditors and those little old lady shareholders of the past. Come on big money! Instead of those PTC stack a shacks being 40% over priced, they'll soon be 60% over priced once DAL starts giving out more raises and bonuses. Everybody wins! Well, almost everybody. :blush:
 

jonjuan

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Openers start in early Spring, with a new contract becoming amendable Jan 1st, 2016. So far RA has never gone past the amendable date of any pilot contract (at NWA or at DL), and he probably knows that the AA pilots have a "me too" clause starting in 2016.


Bye Bye---General Lee

3/3/2/4 with a reduction in PS and other fun givebacks. You'll vote for it. You know you will.
 
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