Delta plans no follow-on aircraft order anytime soon

[General Lee]

GL, can you do me favor and PM me your contractual furlough protections? Including all actions that kick in according to your contract? I'd like to push for some of those added to the CAL/UAL JCBA.

You're getting a PM....


Bye Bye---General Lee

 

[BentOver]

Why does Delta need a President/CEO, executive team or any other leadership..they've got GL!!!


Shouldn't Delta be taking over the world by now? I thought that's what was predicted a few years ago?

 

[On Your Six]

Why does Delta need a President/CEO, executive team or any other leadership..they've got GL!!!


Shouldn't Delta be taking over the world by now? I thought that's what was predicted a few years ago?

I think you are right about GL. He's got my vote.

Here is a synopsis of the June Quarter results, September outlook, and onward looking, originally posted on another Website by another poster(BB), who copied those from the conference call.



June quarter notes:

• Revenue premium results in 636 million operating profit despite 1 Bn increase in fuel costs. Revenue has outpaced fuel price increase!
• Reduced to 13.8Bn debt
• 8 ½% return on invested capital

September Quarter looking better than expected:

• Operating margin between 9 and 11% (2% better than forecast)
• Fuel coming in slightly lower than expected
• Strong bookings with yield improvement (12% to 15% increase in revenue)
• Capacity down 1% Y2Y (elsewhere stated as down 3%)

Going forward:

• Managing for high fuel prices
• Managing non fuel costs, must get costs back to 2010 costs
• Winter flying down 5% Y2Y, especially in markets where revenues do not cover fuel prices
• Flying 20% fewer seats in the winter than the summer
• Done making money in the summer and losing money in the winter
• Good at selling to business. Not as good at selling to customers. Working offerings like economy comfort which has been selling very well. Thinking about using the product domestically as well. Putting WiFi in RJ’s & Lie Flat seats. Very excited about the new JFK terminal which will be the core of “mainline.”
• Delta.com & Res sales is 50% of sales. Better if we can sell direct
• 10-12% down over the Atlantic. Decreasing everywhere but Latin America. Shrinking smaller hubs, especially Memphis.
• $450 million in hedge benefits on fuel cost increases
• Capacity reductions ARE causing non fuel costs to RISE.

Fleet renewal:

• 737-900 15% to 20% reduction in fuel costs per seat and much lower maintenance costs compared to the 757. 757 flying will be reduced. Cash flow positive and accretive from a P&L basis. Thanked Boeing & Airbus for their work on the competition and look forward to talking to them in the “out years.”
• Very comfortable with fleet. Put to rest any thought that we are in the market for another aircraft order. Reason … watching Capital Expenditure. No orders in the next couple of years.
• Expect to get to 10 Bn debt level in 2013. That will save us $500,000,000 a year.

Q&A

• Paying down debt before stock buy back
• NWA merger credited with business sales strength
• US Domestic is our main market with 50 to 60% of our business. Much of our international business is sold in the US. Emirates and Air Asia are not direct competitors, but they do pressure margins. We are investing in Aero Mexico and feel being partnered well allows us to compete.
• Part of our RASM growth was the excise tax suspension
• Very pleased to be an investor with a seat at the table with Aero Mexico. We can bring our skill sets into the emerging marketplace in Mexico and Brazil and we will benefit from lower labor costs. We are looking at other internal markets, especially in South America

Good stuff!


Godspeed!



OYS

 

[On Your Six]

On Your Six,

How many have you got below you? Just sayin babe... There is always that strip club over in East Point. ... They like fat chicks there from what I heard. Furloughed again...Bummer....

GODSPEED!!!

I think I'll be just fine, thanks anyway. When did you go to the East Point strip club? Back in the 50s, when you were training on the DC6 at Eastern?


Godspeed!


OYS

 

[Sacha]

OYS,

What kind of aircraft will you be First Officer on at Compass? Enjoy your Akron overnights...

Good Stuff.....GODSPEED!!!

P.S. Your career is a disaster.

 

[On Your Six]

No talk of furlough thanks to the expensive flow down to Compass and Mesaba. I have heard that a furlough would have to last over 2 years to make it worth the cost of getting a type rating for the furlough, bumping the E175 Capt to FO, etc. And to top it off, management has stated they expected a PROFIT for the year, and a big Q3. As earlier stated, in Q2 DL supposedly paid down $700 million in debt alone, and $2 billion was paid down last year alone. Not bad.........but you would like to scare OYS if you could. Don't worry OY6, things are looking good still..... just no 100 seat aircraft order yet.


Bye Bye---General Lee

Lee,

I'm not worried. That flowdown obviously helps, and profits and paying down debt doesn't hurt either.

Godspeed Lee!


OYS

 

[On Your Six]

OYS,

What kind of aircraft will you be First Officer on at Compass? Enjoy your Akron overnights...

Good Stuff.....GODSPEED!!!

Maybe I'll make it to Grand Rapids, and see you on the 717 there too. I'll buy you the first beer!


Godspeed!


OYS

 

[Fubijaakr]

Maybe Delta is buying a bunch of 717's.

You might have a point....

 

[ACL65PILOT]

717 or the deal with one of these manufactures is done and no further discussions are needed.

 

[Freebrd]

geez those two putzs crack me up, replying to each other now and right after the other