Delta has great DEC quarter, $2.7 Billion yearly profit, article...

[General Lee]

PR Newswire Delta Air Lines 34 minutes ago
ATLANTA, Jan. 21, 2014 /PRNewswire/ -- Delta Air Lines (DAL) today reported financial results for the December 2013 quarter. Key points include:

Delta's net income for the December 2013 quarter was $558 million, or $0.65 per diluted share, excluding special items1.
Delta's net income for 2013 was $2.7 billion, excluding special items, a $1.1 billion increase over 2012.

Delta's GAAP net income was $8.5 billion, or $9.89 per diluted share, for the December 2013 quarter and $10.5 billion for 2013. These results include an $8.0 billion non-cash gain associated with the reversal of the company's tax valuation allowance.

2013 results include $506 million in profit sharing expense, including $119 million in the December quarter, recognizing Delta employees' contributions toward meeting the company's financial goals.

Delta generated nearly $5 billion of operating cash flow and $2.1 billion of free cash flow in 2013, allowing the company to reduce its adjusted net debt at the end of 2013 to $9.4 billion, contribute an incremental $250 million above required funding to its defined benefit pension plans, and return $350 million to shareholders through a combination of $100 million of dividends and $250 million of share repurchases.


"Our December quarter profit caps off a successful year for Delta with strong profitability and margin expansion, industry-leading operations and significant improvements in customer satisfaction. Across the board this was an outstanding year and all credit for these achievements goes to the 78,000 Delta employees worldwide," said Richard Anderson, Delta's chief executive officer. "We have a solid set of initiatives in place to improve our financial results, operational performance and customer satisfaction levels beyond 2013's record levels and remain focused on being the best airline for our employees, customers and shareholders."

Revenue Environment

Delta's operating revenue improved 6 percent, or $474 million, in the December 2013 quarter compared to the December 2012 quarter. Traffic increased 2.0 percent on a 2.9 percent increase in capacity.

Passenger revenue increased 6.1 percent, or $451 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 3.0 percent year over year with a 4.0 percent improvement in yield.

Cargo revenue decreased 1.0 percent, or $3 million, as higher freight volumes partially offset declining freight yields.

Other revenue increased 2.8 percent, or $26 million, driven by higher SkyMiles revenue.




Not bad at all......




Bye Bye----General Lee

 

[BILL LUMBERG]

And yet another refinery loss.....and a huge income tax bump which is due to expire.

Quit putting these guys on a pedestal GL....

 

[jonjuan]

Not bad at all......

Bye Bye----General Lee

Is what management said when you decided to voluntarily reduce your profit sharing to match what non-union FAs receive. Just wait for the millions in options being exercised over the next few weeks. Now THAT will be not bad.

 

[dbrownie]

Now is a great time to pat ourselves on the back for reducing our profit sharing!

Well done Delta pilots!

Maybe by the end of our 2015 contract we will make the rates we did in 2000?

Db

 

[BILL LUMBERG]

Yeah but Brownie....when asked on the contract survey, what would you rather have, Higher pay rates? or Higher Profit sharing? I chose higher pay rates because I determine my own destiny (Darth Vader voice) with more greenies or white slips not letting Ed and the boys dictate the latter with their pen.

Sad we had a seesaw to play with but I think the higher pay rate was a better move.

 

[dbrownie]

Yeah but Brownie....when asked on the contract survey, what would you rather have, Higher pay rates? or Higher Profit sharing? I chose higher pay rates because I determine my own destiny (Darth Vader voice) with more greenies or white slips not letting Ed and the boys dictate the latter with their pen.

Sad we had a seesaw to play with but I think the higher pay rate was a better move.

True Bill;

But we should have never reduced profit sharing for the "higher" rates which were low.

Too bad they never share the results of the surveys........

Db

 

[jonjuan]

Yeah but Brownie....when asked on the contract survey, what would you rather have, Higher pay rates? or Higher Profit sharing? I chose higher pay rates because I determine my own destiny (Darth Vader voice) with more greenies or white slips not letting Ed and the boys dictate the latter with their pen.

Sad we had a seesaw to play with but I think the higher pay rate was a better move.

You do realize that the last 2 years of pay raises of your contract were paid for by giving back ps, don't you? What will you be giving up when management/dalpa give you a 1% pay raise per year for 5 years? A week of vacation? 30 hours of sick leave?" Just" 50 more jumbo RJs? Lol.....

 

[BILL LUMBERG]

Gee Thanks Jon....

I appreciate your insight into a contract you know nothing about or have to work under.

 

[BILL LUMBERG]

True Bill;

But we should have never reduced profit sharing for the "higher" rates which were low.

Too bad they never share the results of the surveys........

Db

And why should they release the results? So the company can say "Aha, 51 percent think pay is important? Next time let's just get a payraise just enough to make them vote yes and forget about the other stuff!"

It would be stupid to publicly release a survey showing what's most important to the pilot group so the company can use a scalpel on it to their advantage.

 

[jonjuan]

W x

And why should they release the results? So the company can say "Aha, 51 percent think pay is important? Next time let's just get a payraise just enough to make them vote yes and forget about the other stuff!"

It would be stupid to publicly release a survey showing what's most important to the pilot group so the company can use a scalpel on it to their advantage.

Mmmmm-kayyyyyy.....so, then how exactly do alpa negotiators negotiate? Management obviously knows that in the survey, the majority of pilots voted to trade ps for pay, hence the offer.
Do you really think management gives a flip what pilots "want" in a survey. Quit thinking like a peasant.

 

[bladeusa]

Congrats on a good year. Thats a lot of dinero..
-and thanks for all the rides commuting.

 

[dbrownie]

And why should they release the results? So the company can say "Aha, 51 percent think pay is important? Next time let's just get a payraise just enough to make them vote yes and forget about the other stuff!"

It would be stupid to publicly release a survey showing what's most important to the pilot group so the company can use a scalpel on it to their advantage.

Bill;
Respectfully I disagree if the company saw "Wow these guys want X" how would that hurt?

Of course I mean results after the contract is signed not during negotiations.

Keeping the results secret is to protect DALPA more than us in my opinion.

Db

 

[jonjuan]

Bill;
Respectfully I disagree if the company saw "Wow these guys want X" how would that hurt?

Of course I mean results after the contract is signed not during negotiations.

Keeping the results secret is to protect DALPA more than us in my opinion.

Db

Bingo. Too bad bill has been brainwashed with the strange metaphor of: "in poker, we can't show our hand, even after the hand ends as they'll quickly realize if we were bluffing or not." Cue the black helicopters.
Frankly, not showing survey results keeps the spotlight from being put on the incompetent. What if 90% asked for pay restoration and all dalpa could muster was 25% of that? Better not release the survey results or our oil paintings will be sold at auction.

 

[DTW320]

12.84% raise last year on the amendable date of the last contract(4% 6 months early then 8.5% on the old amendable date)....not 2+ years after the amendable date....(remember that my fellow fNWA's??) PS decrease of 1/3 on the first 2.5B...Gain of 1/3 on the amount above 2.5Bil.

Do I wish total comp was even more? You bet.

Did I make 3 to 4 times more$$$ from the raises than I lost due to the change in PS? You bet.

Last years PS check = 6% of W2
This years PS check = 8+% of W2 + 15% additional of the PS amount into the 401k(DC/DPSP) AND the W2 is 8.5% higher than 2012's(assuming same category, same hours)
Total PS payout next month(PS + DC Plan) = @ 9.5% of W2

Simple math boys. But when has that ever stopped a good rant?

 

[General Lee]

Is what management said when you decided to voluntarily reduce your profit sharing to match what non-union FAs receive. Just wait for the millions in options being exercised over the next few weeks. Now THAT will be not bad.

There was a reduction in percentage on anything less than $2.5 billion, but an increase in percentage up to 20% for anything OVER $2.5 billion, and the profit was $2.7 billion. The trade was guaranteeing a larger pay rate, or keeping a certain percentage of profits that may or may not be there. Luckily, the DL pilots get both. The rumor is the profit sharing will be 8.3% of last years "pay advance and flight pay", compared to 6% last year that included the old formula without the cut. That means nice extra check on the 14th next month. And, the great thing is it includes a DC contribution on top of the amount at 15%.



Bye Bye---General Lee

 

[Flyby1206]

DL is killing it, congrats to those who made it happen.

 

[DieselDragRacer]

And yet another refinery loss.....and a huge income tax bump which is due to expire.

Quit putting these guys on a pedestal GL....

Last I checked, oil companies don't sell profitable refineries.

 

[DieselDragRacer]

Since DAL is making money hand over fist, how about some 'early' retirement packages for those dinosaur FAs?

 

[jonjuan]

Since DAL is making money hand over fist, how about some 'early' retirement packages for those dinosaur FAs?

Don't think general lees wife is ready to quit just yet.

 

[dbrownie]

12.84% raise last year on the amendable date of the last contract(4% 6 months early then 8.5% on the old amendable date)....not 2+ years after the amendable date....(remember that my fellow fNWA's??) PS decrease of 1/3 on the first 2.5B...Gain of 1/3 on the amount above 2.5Bil.

Do I wish total comp was even more? You bet.

Did I make 3 to 4 times more$$$ from the raises than I lost due to the change in PS? You bet.

Last years PS check = 6% of W2
This years PS check = 8+% of W2 + 15% additional of the PS amount into the 401k(DC/DPSP) AND the W2 is 8.5% higher than 2012's(assuming same category, same hours)
Total PS payout next month(PS + DC Plan) = @ 9.5% of W2

Simple math boys. But when has that ever stopped a good rant?

DTW320;
First off these were not raises, but restoration towards what we used to make.

We are no longer in bankruptcy why are we acting like it?
Why should we give up anything?
Db

 

[dbrownie]

That means nice extra check on the 14th next month.
Bye Bye---General Lee

Also it will be a record pay out to the union, we know they need the money.
It's a good thing DALPA ensured they get an extra slice of the pie too.

 

[DTW320]

DTW320;
First off these were not raises, but restoration towards what we used to make.

We are no longer in bankruptcy why are we acting like it?
Why should we give up anything?
Db

I get it. You're one of the guys who went around saying we had to get a 70% raise date of signing to get back to inflation adjusted 2004 rates.

70%

Whenever I heard that I always said, "show me how we can make that happen and I will support you 100% and do everything I can to make you negotiating chairman". Not one ever had an answer to that.

Do we "deserve" it? Yup.
Is it "fair" that we didn't get it? Nope.
Did C2K rates contribute to DAL's BK? Debatable.
Did we stand a snowballs chance in hell of getting something like that when we were already higher paid than all the legacies, near the top of the industry overall, and dealing with a NMB that directly told us that in mediation they will ONLY look at what our "peers" make? No F*cking Way.

Until guys like you can tell me what you would have done at the negotiating table to get more, STFU and cash the checks. Oh yeah, when you answer, you're not allowed to use words like "fair" and "deserve" and talk about pounding fists on tables. In the real world no one gives a sh#t about any of that...

My W2 was 26% higher last year than 2012 and I'm in the same category/position. How much higher would it have been under your plan? Or would I still be making 1/1/2012 rates and waiting on the NMB to get back to us on our demands?

 

[dbrownie]

I get it. You're one of the guys who went around saying we had to get a 70% raise date of signing to get back to inflation adjusted 2004 rates.

70%

Whenever I heard that I always said, "show me how we can make that happen and I will support you 100% and do everything I can to make you negotiating chairman". Not one ever had an answer to that.

Do we "deserve" it? Yup.
Is it "fair" that we didn't get it? Nope.
Did C2K rates contribute to DAL's BK? Debatable.
Did we stand a snowballs chance in hell of getting something like that when we were already higher paid than all the legacies, near the top of the industry overall, and dealing with a NMB that directly told us that in mediation they will ONLY look at what our "peers" make? No F*cking Way.

Until guys like you can tell me what you would have done at the negotiating table to get more, STFU and cash the checks. Oh yeah, when you answer, you're not allowed to use words like "fair" and "deserve" and talk about pounding fists on tables. In the real world noone gives a sh#t about any of that...

My W2 was 26% higher last year than 2012 and I'm in the same category/position. How much higher would it have been under your plan? Or would I still be making 1/1/2012 rates and waiting on the NMB to get back to us on our demands?

WOW:
Decaf dude...
I never told you to shut the fuc@ up so why so crampy?

All I wanted was for DALPA to show some spine, call it a partial restoration. Acknowledge, how far we need to go, all we have given up
that kind of stuff.


They snapped at delta's first offer and never looked back.

How many hours now do you have to fly to make a living? 80-85?
It's too many I am sure. Good for you 26%.

Please don't act like such a tough guy, I am sure we agree on more than we disagree on.

Db

 

[PBRstreetgang]

Don't think general lees wife is ready to quit just yet.

That's his mom, just 6.9 years to go before she can afford to have the hump on her back "fixed"...

 

[DTW320]

WOW:
Decaf dude...
I never told you to shut the fuc@ up so why so crampy?

All I wanted was for DALPA to show some spine, call it a partial restoration. Acknowledge, how far we need to go, all we have given up
that kind of stuff.


They snapped at delta's first offer and never looked back.

How many hours now do you have to fly to make a living? 80-85?
It's too many I am sure. Good for you 26%.

Please don't act like such a tough guy, I am sure we agree on more than we disagree on.

Db

Not trying to be a jerk. But I notice your only idea(implied) for doing better than what we did was to walk out and refuse the first offer. We all talked about the pros and cons of that back then. Clearly there are 2 camps of people..those that believe DAL would have immediately sweetened the pot and those that think they would have told us to pound sand and forget the whole thing. In the history of airline negotiations, how often has the former happened vs the latter? And if they sweetened the pot how long would that have taken and for how much of an increase?

Since 2009 I have stayed in the same seat (by choice) and moved up 1 airplane type (4% rate differential). I don't do anything unusual at all with my schedule, fly very minimal greenslips...FAR fewer than most folks I talk to, and average 18 days a month off.

YET, in 2013 I made 92% more than I did in 2009. Inflation during that period was 8.6%. So, I made 83.4% more in real dollars than 2009. Don't get me wrong, I wish it was 183.4% more. BUT, how in your wildest imagination you can paint those numbers as some kind of contractual failure or the pilots getting hoodwinked or whatever macho sounding BS you can come up with, is just beyond me.

BTW, getting paid 80-85 hours a month at DAL without working that amount is FAR easier than it EVER was at NWA.

 

[jonjuan]

My W2 was 26% higher last year than 2012 and I'm in the same category/position. How much higher would it have been under your plan? Or would I still be making 1/1/2012 rates and waiting on the NMB to get back to us on our demands?

Of course you made 26% more in 13 than in '12. You worked more-that was part of the TA. Your rates certainly weren't 26% higher, they were 3% higher. Explain THAT one.

 

[DTW320]

Of course you made 26% more in 13 than in '12. You worked more-that was part of the TA. Your rates certainly weren't 26% higher, they were 3% higher. Explain THAT one.

Wow, try to keep up will ya?

In 2013 our rates were 8.5% higher than they were from 7/12 to 12/12. They were 12.84% higher than they were from 1/12 to 7/12. You obviously have trouble reading publicly available pay scales.

I made 26% more, without working more, due to a blended 10% rate raise 2013 vs 2012, higher profit sharing payout, higher shared rewards payouts, using our work rules and swap board to get better more valuable trips than I could get at time of bidding, flying some greenslips....which are flown at a 100% raise, vacation and training being worth more, etc,etc. I could go on but since you think we only got a 3% raise last year, I seriously doubt you have the capacity to understand.

You seem clueless. Explain THAT one...

 

[dbrownie]

Not trying to be a jerk. But I notice your only idea(implied) for doing better than what we did was to walk out and refuse the first offer. We all talked about the pros and cons of that back then. Clearly there are 2 camps of people..those that believe DAL would have immediately sweetened the pot and those that think they would have told us to pound sand and forget the whole thing. In the history of airline negotiations, how often has the former happened vs the latter? And if they sweetened the pot how long would that have taken and for how much of an increase?

Since 2009 I have stayed in the same seat (by choice) and moved up 1 airplane type (4% rate differential). I don't do anything unusual at all with my schedule, fly very minimal greenslips...FAR fewer than most folks I talk to, and average 18 days a month off.

YET, in 2013 I made 92% more than I did in 2009. Inflation during that period was 8.6%. So, I made 83.4% more in real dollars than 2009. Don't get me wrong, I wish it was 183.4% more. BUT, how in your wildest imagination you can paint those numbers as some kind of contractual failure or the pilots getting hoodwinked or whatever macho sounding BS you can come up with, is just beyond me.

BTW, getting paid 80-85 hours a month at DAL without working that amount is FAR easier than it EVER was at NWA.

I know you are not a jerk, so lets get that out there.
My disappointment is that we didn't do better. They came to us and we took their offer. My understanding is we didn't even counter offer...

I agree 80 hours at Delta is way better than 80 hours at NWA

db

 

[DTW320]

I know you are not a jerk, so lets get that out there.
My disappointment is that we didn't do better. They came to us and we took their offer. My understanding is we didn't even counter offer...

I agree 80 hours at Delta is way better than 80 hours at NWA

db

OK, Fair enough. I think everyone on the property would have liked to have done better. The negotiating committee says otherwise about having jumped at a first offer. That committee included a fNWA guy too. More is always better, but looking around the industry, where would you rather be?

Continuing to get 20% increases over 2 1/2 year contracts seems to me to be a much better way to get back to the real $$ you refer to than walking out of the room when we don't get it all at once. Wish we had that kind of leverage, but with this admin, this NMB, no real ability to threaten a strike and our peers still making less overall, I don't see it.

Dalpa is far from perfect (too much waste IMO) but neither T.C. (himself a smart guy) nor, unfortunately, the IDIOTS he has surrounded himself with as officers (have lots of flying experience with several) have a CLUE how to do any better either. They would disagree, but that brings me back to my earlier point....pounding the table and saying we deserve it is not going to net 1 cent more for the Delta pilots...And that's the ONLY plan they have!!

 

[General Lee]

DTW320;
First off these were not raises, but restoration towards what we used to make.

We are no longer in bankruptcy why are we acting like it?
Why should we give up anything?
Db

If you expected to get 47% back all at once then you were delusional. I'll take a 20% raise every 3 years. The problem was the 3% raises the last two years, which probably doesn't cover inflation increases. Also, there were some gains in other parts of the contract, including scope and vacation/training. You just can't get it all at once, nobody would agree to negotiate against that. No more giving up on profit sharing, I agree with you there.


Bye Bye---General Lee