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Delta financial results

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contrail67

Well-known member
Joined
Oct 13, 2003
Posts
954
NEW YORK (Reuters) - Delta Air Lines Inc reported a wider-than-expected third-quarter loss on Wednesday as it faced more than $800 million in extra fuel bills due to the spike in oil prices during the quarter.
AMR Corp , parent of American Airlines, the world's largest carrier by traffic, is also expected to report a fuel-related loss later in the day.
Although the price of oil has returned to the same level as a year ago, around $76 per barrel, it jumped to a record-breaking $148 over the summer. That dashed airlines' hopes of a third-quarter profit, but results are expected to improve if oil stays at current levels.
The massive rise in oil last quarter forced airlines to raise fares and introduce new fees while they retire old planes, cut services, jobs and capacity and target more lucrative international routes. Those measures are expected to bring the industry back to profit in 2009.
"We broadly consider third-quarter industry results to be irrelevant, offering little to no insight as to the industry's 2009 profit potential," said JPMorgan analyst Jamie Baker, in a research note.
Delta said the recent fall in oil prices would save it money, but the outlook for next year was still cloudy.
"While near-term demand remains solid, the current economic crisis creates uncertainty about the longer-term revenue outlook," said Delta Chief Financial Officer Edward Bastian, in a statement. "At the same time, economic concerns have driven the price of fuel down steeply, which will provide significant savings to us."
Delta, which emerged from bankruptcy in April 2007, is set to overtake American as the world's largest airline when it completes its purchase of Northwest Airlines Corp . That deal is on track to close by the end of the year, Delta said on Wednesday.
Atlanta-based Delta, currently the U.S. No 3 carrier behind American and UAL Corp's United Airlines, reported a quarterly net loss of $50 million, or 13 cents per share, compared with a profit of $220 million, or 56 cents per share, in the same quarter last year.
Excluding one-time charges related to terminating contracts and the Northwest merger, it reported a loss of 7 cents per share. That was wider than the 2 cents per share loss expected by Wall Street, according to Reuters Estimates.
Delta increased operating revenue by 9 percent, to $5.7 billion, even though it reduced its flying capacity in the quarter, helped by strong transatlantic business, higher fares and more fees. But the airline's operating costs increased $814 million, or 17 percent, almost entirely due to higher fuel.
For the full year, Delta expects passenger unit revenue to rise 7 to 9 percent as it cuts flights and raises fares. It is expecting domestic capacity to fall 8 to 10 percent for the year, and capacity on its more lucrative international routes to rise 14 to 16 percent.
Delta shares fell 4.3 percent to $7.03 on the New York Stock Exchange. AMR shares fell 2.7 percent to $8.55.
 
The real headline would be more boring:

Delta Breaks Even
-loses 0.0042 on almost 10% higher revenue.

Third-quarter revenue rose 9.4 percent to $5.7 billion.


Delta had $24 million in one-time expenses during the quarter related to early termination fees under regional flying agreements with Republic Airways Holdings Inc. and ExpressJet Holdings Inc., merger-related costs and severance pay for employees who accepted buyouts.


Excluding those costs, Delta's loss was $26 million, or 7 cents a share. Analysts expected Delta to lose 2 cents a share, based on the average of 11 estimates compiled by Bloomberg.
Still, it would have been nice to see that be a positive number. When you consider the size of oil shocks, crazy economic environment and distractions of a merger, not bad results. Clearly there is room for improvement.

Looking forward the merger will both be expensive and provide some low hanging fruit that Delta should be able to cut costs on. Correct me if I'm mistaken, but single engine taxiing, cross bleed starts, maintaining a clean drag profile on approaches, limiting APU usage, refinedments to aircraft utilization, traffic management and other programs that Delta has been emphasizing I don't think are used over at NWA, yet.

Anyone have the prognosis for NWA? I'm expecting break even, or a little profit.

When the bubble between profit and loss goes to the third decimal point, it should make us all reflect how every little thing we do effects the overall outcome.
 
from a Reuters article...

"We broadly consider third-quarter industry results to be irrelevant, offering little to no insight as to the industry's 2009 profit potential," said JPMorgan analyst Jamie Baker, in a research note.

Delta said the recent fall in oil prices would save it money, but the outlook for next year was still cloudy. "While near-term demand remains solid, the current economic crisis creates uncertainty about the longer-term revenue outlook," said Delta Chief Financial Officer Edward Bastian, in a statement.

"At the same time, economic concerns have driven the price of fuel down steeply, which will provide significant savings to us."


Bye Bye--General Lee
 
Correct me if I'm mistaken, but single engine taxiing, cross bleed starts, maintaining a clean drag profile on approaches, limiting APU usage, refinedments to aircraft utilization, traffic management and other programs that Delta has been emphasizing I don't think are used over at NWA, yet
NWA does all of those things, and has for a long time now, especially emphasizing single engine taxi and limiting APU usage.
 
with the fuel in-efficient DC9, NWA is sure to loose money,...how could they possibly post a profit :)
 
Why are pilots so ********************ing stupid? Is it that hard to differentiate between lose and loose? Sorry. I had to get that off my chest.
 
DTW,

Thanks for the correction. One of the FAA folks from your certificate was on our jumpseat yesterday and commented that he had not seen nearly the number of single engine, crossbleed starts and other tasks put on the FO's at NWA that he was observing at Delta. He also commented that Delta typically got tied up with significantly longer taxi times because of ATL (which has not been running nearly as efficiently as it used to for some reason - I'd like to see the numbers) and JFK and LGA.

Looking through the NWA manuals, it appears most of what we do is the same, but Delta's got parts of your FOM spread across five different volumes and is a little harder, at first, to find.

Thankfully, both airlines are AQP. Should help us get used to the "new" procedures, etc ...
 
Why are pilots so ********************ing stupid? Is it that hard to differentiate between lose and loose?

Because we fli plains and drink lots of beer insted of teachin fith grade grammer and haven spellin contests. :)
 
DTW,

Thanks for the correction. One of the FAA folks from your certificate was on our jumpseat yesterday and commented that he had not seen nearly the number of single engine, crossbleed starts and other tasks put on the FO's at NWA that he was observing at Delta. He also commented that Delta typically got tied up with significantly longer taxi times because of ATL (which has not been running nearly as efficiently as it used to for some reason - I'd like to see the numbers) and JFK and LGA.

Looking through the NWA manuals, it appears most of what we do is the same, but Delta's got parts of your FOM spread across five different volumes and is a little harder, at first, to find.

Thankfully, both airlines are AQP. Should help us get used to the "new" procedures, etc ...

Fins, that FAA guy must have been in a lot of DC-9 jumpseats. Single engine taxi is encouraged in the 9 but most of the time we are too heavy (outbound) to do a SE taxi. However, most Captains taxi in on one engine. From what I've seen, SE taxi on the 75 and Airbus are much more common.
 
Fins, that FAA guy must have been in a lot of DC-9 jumpseats. Single engine taxi is encouraged in the 9 but most of the time we are too heavy (outbound) to do a SE taxi. However, most Captains taxi in on one engine. From what I've seen, SE taxi on the 75 and Airbus are much more common.


I've never seen an NWA 757 or Airbus taxi out on a single engine...not once.

Every NWA 757 guy thinks that they are "too heavy." I wonder how quickly they'll learn that single engine breakaway thrust is minutely higher than two engine breakaway...
 

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