Delta Paid $5.78 a Gallon in May

[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 )

 

[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.

The IDEA WORKS Company came out with an Ancillary Revenue report for all airlines and in 2010 SWA made $223 million from the Rapid Reward program. Not bad.



Bye Bye---General Lee

 

[General Lee]

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

I agree. I'm done with this, unless they want to stir it up some more.


Bye Bye--General Lee

 

[dicko]

Dicko,

We haven't even started Class II nav training yet, but you knew that right? You seem to have all the answers but not all the info.

We also had provisions in our contract that needed to be addressed, as well as the FAs contract, but you knew that as well. (Just so you know, ANYTHING outside of the lower 48 is considered international per our contract and would require a SWAPA re-opener......and yes, even San Juan)

All but one of the international destinations and San Juan can be done with a 162 nm exemption. Nothing more than paper.

Only Bermuda requires Class 2 Nav.

 

[SWA 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.

Well then I guess that YOU should be running the airline since you profess to know so much as to how it could or should be. It's amazing that Southwest is still in business, considering how poorly it's run.

Sorry, Dicko, but I'm not buying your story. If it's "common knowledge" that our reservation system can't charge for bags, how come no one knows it but you? How come we can charge for dogs and cats and UMs (which we added relatively recently), but not for checked bags? How come we can charge for oversized or overweight checked bags, but not "regular" sized and weighted checked bags? How come we can charge for third and subsequent checked bags, but can't seem to charge for the first two?

And if our international reservation system has been around "for a long time," I suppose that makes Gary Kelly and everyone else in Dallas blatant liars, since they've specifically made public statements to the contrary. And to answer your question about why, since we have this reservation system "already," that Airtran isn't flying to Hawaii, it's because of the point we've all been belaboring. Hawaii isn't international, and a new reservation system isn't required for Southwest (or Airtran) to fly there. ETOPS qualifications are the limiting factor. Working on that too.

Sorry to say Dicko, but all the negative crap you may hear from time to time is not always true. Despite whether you want to believe it or not.

Bubba

 

[redflyer65]

Bubba,

Your exactly right. To be honest, the Navistar system that Airtran uses isn't much better than what we use. FACT. (and yes, I do know what I'm talking about here)

We charge for plenty of ancillary fees now. The bag debate is bogus, it could be done tomorrow if Dallas wanted too.

Dicko,

How would Airtran do Hawaii tomorrow if they...

1- Don't have ETOPS planes.
2- Don't have ETOPS pilots.

Please enlighten me.

Your arguement about the the 162nm flights we can do has marginal merit, you look at the routing required to go BWI-SJU with that restriction...and you know why Southwest hasn't been doing it already. You want to blow gas out the tailpipe to meet that restriction? I don't, and neither does Gary.