Delta Air cash-flow warning hits stock
By August Cole, CBS.MarketWatch.com
Last Update: 10:29 AM ET March 11, 2003
ATLANTA (CBS.MW) -- Delta Air Lines fell 17 percent Tuesday after disclosing that that "geopolitical uncertainties" have hurt the company's March quarter, and will result in negative cash flow and reduced capacity for period.
Delta Air falls after cash-flow warning
Delta warning, AMR jitters depress airlines
In recent action, Delta (DAL: news, chart, profile) fell $1.55 to $7.11 as the airline sector sank. See Airline Stocks.
Cash flow had been expected to be slightly positive, Delta said in a statement included in an SEC filing announcing the disclosure. Capacity is likely to fall 1.5 percent in the March quarter, though expectations had been for an increase of 0.5 percent to 1 percent.
Delta is expected to lose $3.12 a share in the quarter, according to Multex.
The airline also said it has raised its fuel hedging for 2003 to 60 percent, at 77 cents, up from a 50 percent hedge in January.
In the current quarter, which has seen aviation fuel prices steadily increase, the company is hedged at 77 percent with a per-gallon price of 79 cents. Looking to the second quarter, Delta is 78 percent hedged at 76 cents a gallon.
According to Deutsche Bank, aviation fuel was as high as $1.30 a gallon last week - a 113 percent increase.
Associated Press
Delta to Lose Money in 1st Quarter
Tuesday March 11, 12:15 am ET
Delta Expects to Lose Money in First Quarter Due to Worries Over War With Iraq
ATLANTA (AP) -- Delta Air Lines expects negative cash flow from operations this quarter due to concern over potential war with Iraq, the airline said Monday.
The nation's third-largest airline did not give an estimate of its anticipated loss. Analysts surveyed by Thomson First Call expect the company to lose $3.04 per share.
Delta said it expects to fill 1.5 percent fewer seats than during the first quarter of 2002, instead of a 0.5 percent to 1 percent increase.
"Bookings for the quarter are down, and we expect this to continue," said M. Michele Burns, Delta's chief financial officer. "Changes to capacity and additional fuel hedging agreements continue to help us manage through these difficult times. Delta remains committed to aggressively reducing costs and maintaining the flexibility to quickly adjust to changing market demand."
Atlanta-based Delta announced additional fixed-price fuel contracts, ensuring costs for about 60 percent of its estimated 2003 requirements at an average price of 77 cents per gallon. In January, the airline said it had hedged half its expected fuel needs for 2003 at an average price of 75 cents per gallon.
In January, the airline said cash flow from operations was expected to be slightly positive for the quarter.
Delta shares were down 22 cents Monday at $8.66 on the New York Stock Exchange
By August Cole, CBS.MarketWatch.com
Last Update: 10:29 AM ET March 11, 2003
ATLANTA (CBS.MW) -- Delta Air Lines fell 17 percent Tuesday after disclosing that that "geopolitical uncertainties" have hurt the company's March quarter, and will result in negative cash flow and reduced capacity for period.
Delta Air falls after cash-flow warning
Delta warning, AMR jitters depress airlines
In recent action, Delta (DAL: news, chart, profile) fell $1.55 to $7.11 as the airline sector sank. See Airline Stocks.
Cash flow had been expected to be slightly positive, Delta said in a statement included in an SEC filing announcing the disclosure. Capacity is likely to fall 1.5 percent in the March quarter, though expectations had been for an increase of 0.5 percent to 1 percent.
Delta is expected to lose $3.12 a share in the quarter, according to Multex.
The airline also said it has raised its fuel hedging for 2003 to 60 percent, at 77 cents, up from a 50 percent hedge in January.
In the current quarter, which has seen aviation fuel prices steadily increase, the company is hedged at 77 percent with a per-gallon price of 79 cents. Looking to the second quarter, Delta is 78 percent hedged at 76 cents a gallon.
According to Deutsche Bank, aviation fuel was as high as $1.30 a gallon last week - a 113 percent increase.
Associated Press
Delta to Lose Money in 1st Quarter
Tuesday March 11, 12:15 am ET
Delta Expects to Lose Money in First Quarter Due to Worries Over War With Iraq
ATLANTA (AP) -- Delta Air Lines expects negative cash flow from operations this quarter due to concern over potential war with Iraq, the airline said Monday.
The nation's third-largest airline did not give an estimate of its anticipated loss. Analysts surveyed by Thomson First Call expect the company to lose $3.04 per share.
Delta said it expects to fill 1.5 percent fewer seats than during the first quarter of 2002, instead of a 0.5 percent to 1 percent increase.
"Bookings for the quarter are down, and we expect this to continue," said M. Michele Burns, Delta's chief financial officer. "Changes to capacity and additional fuel hedging agreements continue to help us manage through these difficult times. Delta remains committed to aggressively reducing costs and maintaining the flexibility to quickly adjust to changing market demand."
Atlanta-based Delta announced additional fixed-price fuel contracts, ensuring costs for about 60 percent of its estimated 2003 requirements at an average price of 77 cents per gallon. In January, the airline said it had hedged half its expected fuel needs for 2003 at an average price of 75 cents per gallon.
In January, the airline said cash flow from operations was expected to be slightly positive for the quarter.
Delta shares were down 22 cents Monday at $8.66 on the New York Stock Exchange