Delta Posts $1.77B profit

FDJ2

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Delta Air Lines Posts $1.77B Profit
Wednesday July 18, 10:39 am ET
By Harry R. Weber, AP Business Writer Delta Air Lines Swings to Profit of $1.77 Billion After It Emerges From Bankruptcy Protection


ATLANTA (AP) -- Delta Air Lines Inc., the nation's third-largest carrier, cited a 5.5 percent gain in sales as it reported Wednesday that it swung to a profit in the second quarter, which saw it emerge from bankruptcy after shaving billions of dollars in costs.


The Atlanta-based company's results beat Wall Street expectations when one-time items are excluded.

Also Wednesday, outgoing Chief Executive Gerald Grinstein told investors and analysts during a conference call that Delta's board will likely choose his successor by the end of the summer, at which point he will retire. He had initially said he planned to leave soon after Delta emerged from Chapter 11, but later extended that timeline.

He said during the call the board is taking a deliberative approach to finding his replacement "given the magnitude of this decision."
The top internal candidates for CEO are Chief Financial Officer Ed Bastian and Chief Operating Officer James Whitehurst. No external candidates have been mentioned publicly.

Delta shares rose 5 cents to $21.24 in morning trading.

For the three months ending June 30, Delta said it recorded net income of $1.77 billion, or $4.49 a share, compared to a loss of $2.21 billion in the same period a year earlier. The corresponding per-share figure for the year-ago loss was not provided in Delta's balance sheet.

Excluding reorganization and related one-time items, Delta said it had a profit of $274 million, or 70 cents a share, in the second quarter. On a comparable basis, analysts surveyed by Thomson Financial were expecting a profit of 59 cents a share.
The reorganization and related one-time items Delta accounted for in the second quarter of this year stemmed from $1.5 billion of income primarily due to the discharge of claims and liabilities in connection with its bankruptcy proceedings and the adoption of fresh-start reporting.

Revenue in the April-June quarter rose to $5 billion, compared to $4.74 billion recorded in the same period a year earlier.

At the end of the quarter, Delta had $3.7 billion in cash, cash equivalents and short-term investments, of which $3.4 billion was unrestricted. Delta also has an additional $1 billion in unrestricted liquidity available under its undrawn revolving credit facility.

Delta recorded roughly $40 million in cash gains on fuel hedge contracts settled during the quarter.

For the first six months of the year, Delta said its net income was $1.64 billion, compared to a loss of $4.28 billion for the same period a year earlier. Per-share figures were not given. Six-month revenue rose to $9.24 billion, compared to revenue of $8.54 billion in the same period a year earlier.

Grinstein said he was pleased by the results.
"We are focused on the future," Grinstein said.
Delta entered Chapter 11 on Sept. 14, 2005. The company emerged on April 30.

In bankruptcy, Delta shed billions in costs and restructured the carrier's operations. It also survived a hostile takeover bid by Tempe, Ariz.-based US Airways Group Inc.

After exiting bankruptcy, Delta unveiled plans for a new paint job for its planes, featuring the company's three-dimensional red logo flying across a blue background on the tail of aircraft.
Besides finding a new CEO, Delta's board also must decide whether to sell or spin off regional feeder carrier Comair. The airline has not provided a specific timetable for that decision.
 

RSRVWINDSURFR

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Meanwhile, Continental reported a 4.5 kazillion dollar profit, while Southwest reported a modest gillion trillion dollar profit.
 

9rj9

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does it

Does it sting just a bit to know you signed away your contract and retirement for these clowns to suddenly come out of bankruptcy and make 1.77 billion dollars.??
Management has to be laughing at you right now, eating their $ 100 plate lunch downtown Atlanta, while you're in a 1 hour line to pick up a whopper and fries served cold and soggy by a 20 year old crack head who hasn't washed his hands...ever.
Why do you even have a union when the FAs make more than the FO. Scott?!?
 

ATR-DRIVR

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Congrats Delta. Good to hear money is slowly coming back to the airline biz.

Oh, jr9,
I guess it doesn't sting knowing how big of d-bags you and all the other Delta slammers are! Great to hear you are happy someone was able to make some money!! Excellent cheerleading! Keep it up!
 

9rj9

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They made money only because they took it from the employees, period. You know it and they know it.

If you want to be happy about management transfering salary to the profit line on a balance sheet, then be that way.
 

FDJ2

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They made money only because they took it from the employees, period.
5.5 percent gain in sales

Revenue in the April-June quarter rose to $5 billion, compared to $4.74 billion recorded in the same period a year earlier.

Six-month revenue rose to $9.24 billion, compared to revenue of $8.54 billion in the same period a year earlier.





 

FDJ2

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Does it sting just a bit to know you signed away your contract and retirement for these clowns to suddenly come out of bankruptcy and make 1.77 billion dollars.??

Let me see, I gave up 14% for 6 months, and got 1.5% back last January, at these numbers I'll get another 6% back this January, I'll probably get profit sharing of close to 5% for the year and I didn't have to make any work rule concessions, the average DAL pilot got over $170K in cash back this last May for a very short concessionary contract, I get my fair share of $650M plus a 9% DC plan and 2% 401K contribution, plus PBGC pay outs and PC-5 redistributions I still make more than most and probably you. Not bad for a contract negotiated with a gun to our heads in Bankruptcy during an 1113C hearing.
 

acarpe3448

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They made money only because they took it from the employees, period. You know it and they know it.

If you want to be happy about management transfering salary to the profit line on a balance sheet, then be that way.

You need to read a little more carefully! Our revenue in creased by nearly a billion dollars in one quarter! There is more to the numbers than taking it from the pilots! I hated taking the cuts, however, I feel a lot more confident of getting it back when Delta is making money! Meanwhile your little RJ outfit is taking money away from the major! Thanks for your support!
 

9rj9

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read even more carefully

For the three months ending June 30, Delta said it recorded net income of $1.77 billion, or $4.49 a share.
Excluding reorganization and related one-time items, Delta said it had a profit of $274 million, or 70 cents a share, in the second quarter. The reorganization and related one-time items Delta accounted for in the second quarter of this year stemmed from $1.5 billion of income primarily due to the discharge of claims and liabilities in connection with its bankruptcy proceedings and the adoption of fresh-start reporting

The real number was 274 million, the 1.77 billion is smoke from a one time charge. Keep telling yourself you didn't get taken. While you might be impressed with what your give backs have accomplished, Wall Street is unimpressed the stock is up 0.05.

If you can get those 90 seaters to a regional you might be able to make some real money.
 

uba757

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9rj9, Delta finally shows some signs of economic progression and you have to be an A$$ about it. There must be a full moon tonight because this is the first time I agree with FDJ2 and ACARPE on anything. The reason pilots make less is because some (and again I am using the word some) of the RJ pilots out there are willing to fly for a can of Coke and a bag of peanuts and then everything up the chain just follows the Domino effect. Congrats Delta, keep it up now. UBA757
 

Max Powers

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It's funny listening to these post....everyone has a point However; the progressive cynic that sees the hypocrisy in things generally makes the best point. Well done 9rj9.
 

uba757

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Max, I understand what you are trying to say but my point is to just let them enjoy their parade for now. Maybe later when more and more airlines begin to make more bucks, then we can all make more bucks. UBA757
 

flaps30

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where....

While I'm glad to see Delta making tons of cash (1.77 billion), I'm also wondering where the outrage is amoung the pilots who did take pay cuts, seems like they could pay you after all doesn't it?
Guess the question is when will you ask for it back.
 

FlyingSig

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Wasn't the point of taking paycuts to help return the company to profitability? Even if they did make this profit on my back I know that I'm getting a piece back because of ALPA negotiated payraises triggered by profit, plus profit sharing. Seems like the plan is actually working.

The last 5 years sucked but it's been a good year so far and as long as this continues it's only going to get better for everybody... even the bottom feeders like 9rj.
 

flaps30

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point taken

I guess I see your point, but was the loss of retirement and paycut really necessary???
Seems fishy that suddenly thay make 1.77 billion dollars. I don't think they needed the paycuts, but again I don't work there. So, if the delta gals are happy with it, i guess I'll be happy too.
 

Howard Hughes

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I guess I see your point, but was the loss of retirement and paycut really necessary???
Seems fishy that suddenly thay make 1.77 billion dollars. I don't think they needed the paycuts, but again I don't work there. So, if the delta gals are happy with it, i guess I'll be happy too.
I am just curious what you personaly would have done differently? When in BK the judge is basically making the changes that the company is asking for, the current administration won't allow a strike and if you vote no too many times you get an even worse deal crammed down your throat. Once again, what would you suggest the Delta pilots should have done differently?
 

flaps30

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I guess there was nothing they could do during bankruptcy, but now they could ask for it back. I know they will say no, oil prices are climbing, we have to remain competitive, ect. Just thought there would be a call to arms by the pilots to get some back when they just reported 1.77 billion profit. Guess management got exactly what they wanted, I bet they give themselves another big pay raise since they alone saved Delta.
 

General Lee

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I guess there was nothing they could do during bankruptcy, but now they could ask for it back. I know they will say no, oil prices are climbing, we have to remain competitive, ect. Just thought there would be a call to arms by the pilots to get some back when they just reported 1.77 billion profit. Guess management got exactly what they wanted, I bet they give themselves another big pay raise since they alone saved Delta.
Our top management did get some bonuses for BK exit, (the COO and CFO got about $6 million supposedly), but Grinstein the CEO gave away his $10 million to an employment fund for emergencies and scholorships. Yes, he was rich anyway, but I didn't see any other CEO do the same. We will get a new CEO by the Summer too.

Bye Bye--General Lee
 

Howard Hughes

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I guess there was nothing they could do during bankruptcy, but now they could ask for it back. I know they will say no, oil prices are climbing, we have to remain competitive, ect. Just thought there would be a call to arms by the pilots to get some back when they just reported 1.77 billion profit. Guess management got exactly what they wanted, I bet they give themselves another big pay raise since they alone saved Delta.
Yes you can rest assured of two things:

1. Management will try to help themselved whenever they can.
2. The pilots will ask for money back. They will use everything possible to make this happen.

The plan talking to most of my Delta friends is to let the company turn a healthy profit (projected 800 million for 2007, projected 1.4 billion for 2008, projected 1.8 million for 2009) then in 2009 when the contract opens back up go for around a 30% increase in pay rates.

You say where is the outrage? These numbers were announced today. Sure there is grumbling in many cockpits today but the plan for a takeback has to be engineered more strategically than just showing outrage. From what I have heard the number one priority of DALPA is a takeback in 2009. The numbers reported today fit well with that plan. The best outcome, is continue growing the international side increasing profits, the pilots get healthy raises and the company grows and posts good numbers.
 

9rj9

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right into the 2009 airline cycle drop, perfect timing.
 
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