Delta Paid $5.78 a Gallon in May

[SWA Bubba]

Reaaaaaly ...... Would you like to explain the reasons why SWA is not doing any International flying ? Your Training department recently asked AirTran about customs clearance procedures in San Juan. Yes, I'm serious.

It's amazing that you guys on the other side of the partition seem to have all these "facts" about how Southwest works that no one else has. Where did you hear that about Training mistakenly thinking San Juan was "international"? From another bitter Airtran guy? What a shocker.

Yes, we all know that San Juan isn't international in a legal or technical sense. Flight Ops is already planning it, but had to wait for contractual issues to be settled. As Red pointed out, anything outside the contiguous 48 is "international" for our CBA purposes (including San Juan and Hawaii), and had to be negotiated. Supposedly, VP Flt Ops promised we would fly to SJU by late 2012 (that would be this year; you know, before we're "smart enough" to fly international). if we agreed on SL-12 &14 which amended our contract to allow it.

As far as addressing your actual question, instead of just your snide implications,... yes, yes, everyone knows our reservations system wasn't designed for the added requirements of international travel. We're working on it. Whether or not assigned seating is one of those requirements or not (I suspect it's not), I admit that I don't know for sure. However, I'd be willing to bet that you guys don't "know" one way or the other for sure either. Just because no other carrier flies international with open seating doesn't mean it can't be done. I guess we'll all find out soon enough.

Bubba

 

[waveflyer]

Wow, thanks guys- two delta trolls want me to chime in so they don't have to deal with the thread subject.
At least those new RJs you guys are too scared to fly are $40 million each- that'll help stave off the losses
:-/
Of course I've been assured by these same two that delta won't have hard times again, and therefore won't press to get CRJ1000's outsourced

 

[General Lee]

Wow, thanks guys- two delta trolls want me to chime in so they don't have to deal with the thread subject.
At least those new RJs you guys are too scared to fly are $40 million each- that'll help stave off the losses
:-/
Of course I've been assured by these same two that delta won't have hard times again, and therefore won't press to get CRJ1000's outsourced

Stave off losses? You mean the ones that can't be covered by the extra $2.5 billion in ancillary revenue? We had a profit for this quarter, that included profit sharing for employees. The "marked to Market" losses for fuel hedges are not real losses at all, rather an update on what you "could" loses if oil prices continue to fall (they aren't). Those hedges can go out for up to 18 months, not all due this quarter. There was a $155 million loss on the hedged, but that was offset by gains due to lower fuel (besides hedged fuel) and strong demand. The stock went up, and we receive profit sharing. Plus, fuel prices for the next two quarters aren't even close to the high prices DL paid in May. Obviously Wall Street liked it, but you know different.


Instead, you need to concentrate on two things. First, be nice to the trannies. They are your brothers now, with some senior to you probably. Next, if you want any of the future newhires to be quality, drop the pft. It may help your recruitment, even though your bottom guys are saying 20 years to upgrade. 20 years of intra Texas, ouch. Fix those two things, and then you can obsess about DL RJs that are actually decreasing in huge numbers overall.

Bye Bye----General Lee

 

[Scoot 11]

Wow, thanks guys- two delta trolls want me to chime in so they don't have to deal with the thread subject.
At least those new RJs you guys are too scared to fly are $40 million each- that'll help stave off the losses
:-/
Of course I've been assured by these same two that delta won't have hard times again, and therefore won't press to get CRJ1000's outsourced

Thanks for caring so much for our operations. Now that you got that off your chest, you can hit the guy to flex up for your date tonight with redflyer!

 

[SWA Bubba]

Stave off losses? You mean the ones that can't be covered by the extra $2.5 billion in ancillary revenue? We had a profit for this quarter, that included profit sharing for employees. The "marked to Market" losses for fuel hedges are not real losses at all, rather an update on what you "could" loses if oil prices continue to fall (they aren't). Those hedges can go out for up to 18 months, not all due this quarter. There was a $155 million loss on the hedged, but that was offset by gains due to lower fuel (besides hedged fuel) and strong demand. The stock went up, and we receive profit sharing. Plus, fuel prices for the next two quarters aren't even close to the high prices DL paid in May. Obviously Wall Street liked it, but you know different.


Instead, you need to concentrate on two things. First, be nice to the trannies. They are your brothers now, with some senior to you probably. Next, if you want any of the future newhires to be quality, drop the pft. It may help your recruitment, even though your bottom guys are saying 20 years to upgrade. 20 years of intra Texas, ouch. Fix those two things, and then you can obsess about DL RJs that are actually decreasing in huge numbers overall.

Bye Bye----General Lee

Wow, maybe you WERE actually listening all those times I said essentially the same exact thing to YOU, when YOU pretended that Southwest hedge devaluations were the same as an actual loss. So you're only an idiot when you're slamming Southwest? Good to know...

Bubba

 

[redflyer65]

Wow, maybe you WERE actually listening all those times I said essentially the same exact thing to YOU, when YOU pretended that Southwest hedge devaluations were the same as an actual loss. So you're only an idiot when you're slamming Southwest? Good to know...

Bubba

Exactly. Pot meet Kettle, Genital.

The bottom line here is that Delta will continue to lose money on their hedge unless it rises to 5.78/gallon.....which is a looooong way off from where we are now.

 

[SWA Bubba]

Stave off losses? You mean the ones that can't be covered by the extra $2.5 billion in ancillary revenue? We had a profit for this quarter, that included profit sharing for employees. The "marked to Market" losses for fuel hedges are not real losses at all, rather an update on what you "could" loses if oil prices continue to fall (they aren't). Those hedges can go out for up to 18 months, not all due this quarter. There was a $155 million loss on the hedged, but that was offset by gains due to lower fuel (besides hedged fuel) and strong demand. The stock went up, and we receive profit sharing. Plus, fuel prices for the next two quarters aren't even close to the high prices DL paid in May. Obviously Wall Street liked it, but you know different.


Instead, you need to concentrate on two things. First, be nice to the trannies. They are your brothers now, with some senior to you probably. Next, if you want any of the future newhires to be quality, drop the pft. It may help your recruitment, even though your bottom guys are saying 20 years to upgrade. 20 years of intra Texas, ouch. Fix those two things, and then you can obsess about DL RJs that are actually decreasing in huge numbers overall.

Bye Bye----General Lee

By the way, despite your insinuation, you didn't have $2.5B more in ancilliary revenue than Southwest. According to the Wall Street Journal, airline "ancilliary revenue" is about 60% from credit card deals and tie-ins, which Southwest participates in as well. Your baggage fees (and change fees, etc.) obviously bring in revenue, but not all that. So keep that in mind next time you're playing like you know what you're talking about, okay?

Bubba

P.S. Also, throwing in the childish PFT argument again just takes away from any credibility you may have garnered. You know how much I like you, GL; I'm just trying to look out for you--you know, keep you from looking any dumber than necessary.

 

[General Lee]

Exactly. Pot meet Kettle, Genital.

The bottom line here is that Delta will continue to lose money on their hedge unless it rises to 5.78/gallon.....which is a looooong way off from where we are now.

What Kramer? DL paid $5.78 a gallon in May (hence the loss), but RA stated today in the conference call that this quarter and next the amount will be around $3.05 a gallon, meaning profits many times larger than yours. The hedges protected against huge gains in price for Brent Crude, and there was a huge drop in May, but since then it is back up to around $105 a barrel (Brent). That means not a huge loss coming up. Wall Street liked it all, but you and Wave don't..... Oh yeah, add that $2.5 billion in ancillary revenue please. How about your ancillary revenue? Nevermind.....



Bye Bye--General Lee

 

[General Lee]

Wow, maybe you WERE actually listening all those times I said essentially the same exact thing to YOU, when YOU pretended that Southwest hedge devaluations were the same as an actual loss. So you're only an idiot when you're slamming Southwest? Good to know...

Bubba

I commented mainly on your first loss, which was significant. Your darling airline which kicked everyone's rear end during the last decade after 9-11 was finally rid of the beneficial hedges and was showing that every airline was vulnerable. That was my point bubba. Go enjoy MAF while you're at it.


Bye Bye--General Lee

 

[redflyer65]

Wall St like it? Ah, okay Genital whatever you say.

We actually have ancillary revenue, exactly as Bubba pointed out above. Our credit card revenue alone is up 30% just in the last quarter alone. The new Rapid Reward program is starting to hit on all cyclinders lately. Thanks for asking.

 

[General Lee]

Wall St like it? Ah, okay Genital whatever you say.

We actually have ancillary revenue, exactly as Bubba pointed out above. Our credit card revenue alone is up 30% just in the last quarter alone. The new Rapid Reward program is starting to hit on all cyclinders lately. Thanks for asking.

Does it generate $2.5 billion PER YEAR? No? I think Delta has more than 25 million people in the SkyMiles program. Good for you guys. Have a great one in AMA.


Bye Bye----General Lee

 

[redflyer65]

I'm glad you guys think AMA is below you General. We'll take all the profit out of AMA, LBB, HRL because people prefer to fly a full size jet instead of the Barbie Jets.

I'll fly to those destinations all day, everyday as long as our company can make money there. Appearantly your's can't.

I really find it amazing that you keep pointing that out.......YOURSELF!

 

[General Lee]

I'm glad you guys think AMA is below you General. We'll take all the profit out of AMA, LBB, HRL because people prefer to fly a full size jet instead of the Barbie Jets.

I'll fly to those destinations all day, everyday as long as our company can make money there. Appearantly your's can't.

I really find it amazing that you keep pointing that out.......YOURSELF!

I just really don't want to go to AMA, MAF, or LBB. Sorry. You may LUV it, but I don't want to go to any of those places.


As far as making money, here's part of what the CEO said via Seeking ALPA today on the conference call:



Richard Anderson
Thanks Jill. Good morning and thank you for joining us. This morning we announced a $586 million profit for the June quarter excluding special items, which is a $220 million improvement over last year. This represents EPS of $0.69 compared to consensus estimates of $0.68. Top line revenue grew 6%. Passenger unit revenues improved 8.5%.

Delta has now produced a unit revenue premium to the industry for 15 consecutive months, and we intend to continue doing so. Our 9.1% operating margin improved more than 200 basis points over last year and we have now achieved $5 billion of our $7 billion net debt reduction target. We will continue to reduce our debt and expect to get below $10 billion in net debt by the end of 2013.

Delta’s operational performance for the quarter was exceptional. For the quarter, our completion factor was 99.7% and 87.5% of our flights arrived on time, an 8 point improvement over last year and our best ever June quarter operational performance. On top of that, our DOT mishandled baggage rate decreased 30% and our DOT customer complaints fell 20%. These results, combined with our international operational performance put Delta at the very top of the industry for operating performance and customer service.

By all measures these are some of the best financial and operational results in Delta’s history, and I am thankful for the Delta team that has produced them. It is their commitment and dedication to this airline and our customers that differentiates Delta.

Looking forward, we are expecting to achieve a 10% to 12% operating margin in the September quarter, with system capacity forecast to be down 1% to 3% year-on-year. The revenue environment remains solid for Delta as July unit revenues are expected to increase 4% to 5% in each of our entities, Domestic, Latin, Pacific and Atlantic have good bookings in the third quarter. Capacity discipline is our key lever. We will continue to actively manage our capacity, including a 5% Trans-Atlantic capacity reduction for this fall. We will remain diligent in our efforts to have our fares fully reflect our costs and we will further reduce capacity if necessary to be certain we properly match our capacity with demand.

We’re pleased with this quarter results and our outlook for 2012.




Bye Bye---General Lee

 

[dicko]

Where did you hear that about Training mistakenly thinking San Juan was "international"? From another bitter Airtran guy? What a shocker.
Bubba

Sorry Bubba. It didn't come from a "bitter AirTran guy". If it had, I'd have discounted it. No, I'm not going to tell you who. I'm sure you can figure out why.

I'm afraid your bag fees answer is incorrect as well. Your system is unable to charge for the extra bags. It's common knowledge at this point. It was well turned around for publicity. Turning it back around will be interesting to watch.

The main point - the new Reservation system has been available for a long time. Yet, it's only beginning the implementation process. AirTran could have been flying to Hawaii now, with the money going into SWA coffers. But it's not. instead SWA is only beginning Class 2 Nav lessons.

I am reassured by the humble attitude though.

 

[SplitBar]

I just really don't want to go to AMA, MAF, or LBB. Sorry. You may LUV it, but I don't want to go to any of those places.


As far as making money, here's part of what the CEO said via Seeking ALPA today on the conference call:



Richard Anderson
Thanks Jill. Good morning and thank you for joining us. This morning we announced a $586 million profit for the June quarter excluding special items, which is a $220 million improvement over last year. This represents EPS of $0.69 compared to consensus estimates of $0.68. Top line revenue grew 6%. Passenger unit revenues improved 8.5%.

Delta has now produced a unit revenue premium to the industry for 15 consecutive months, and we intend to continue doing so. Our 9.1% operating margin improved more than 200 basis points over last year and we have now achieved $5 billion of our $7 billion net debt reduction target. We will continue to reduce our debt and expect to get below $10 billion in net debt by the end of 2013.

Delta’s operational performance for the quarter was exceptional. For the quarter, our completion factor was 99.7% and 87.5% of our flights arrived on time, an 8 point improvement over last year and our best ever June quarter operational performance. On top of that, our DOT mishandled baggage rate decreased 30% and our DOT customer complaints fell 20%. These results, combined with our international operational performance put Delta at the very top of the industry for operating performance and customer service.

By all measures these are some of the best financial and operational results in Delta’s history, and I am thankful for the Delta team that has produced them. It is their commitment and dedication to this airline and our customers that differentiates Delta.

Looking forward, we are expecting to achieve a 10% to 12% operating margin in the September quarter, with system capacity forecast to be down 1% to 3% year-on-year. The revenue environment remains solid for Delta as July unit revenues are expected to increase 4% to 5% in each of our entities, Domestic, Latin, Pacific and Atlantic have good bookings in the third quarter. Capacity discipline is our key lever. We will continue to actively manage our capacity, including a 5% Trans-Atlantic capacity reduction for this fall. We will remain diligent in our efforts to have our fares fully reflect our costs and we will further reduce capacity if necessary to be certain we properly match our capacity with demand.

We’re pleased with this quarter results and our outlook for 2012.




Bye Bye---General Lee

Nuff said. Let wave & red continue their jealous obsession with our Air Line )