Delta Posts $1.77B profit

[GuppyWN]

I forsee more bonuses for management and a 1% payraise for employees.

Gup

 

[Schiphol]

I forsee more bonuses for management and a 1% payraise for employees.

Gup

Now that.....is sadly funny.

 

[FDJ2]

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.

I hate taking pay cuts, however, there was no one even close to Delta's C2K pay rates for over two years. When we finally did take pay cuts in Dec. 2004, we were still industry leading after a 32.5% cut. The additional 14% wasn't fun either, however negotiating a contract in bankruptcy during an 1113c never is. With that said, the concessionary CBA is significantly shorter than demanded, the cuts were significantly less and shorter in duration then expected and we have already seen significant return on our investment.

When we first negotiated a $2.1B claim for our approximate $980M concession ( company quoted the concessions as $280M/year for 3.5 years, it's probably significantly less than that), who would have envisioned that we would get 60 cents on the dollar for that claim, in other words $1.26B in cash back to the Delta pilots this last May? That was on average approximately $200K/pilot in a single day. Furthermore, we have already received one small pay raise, will get another one in January and will enjoy some profit sharing $$$.

Am I outraged that we took these cuts and the company's use/abuse of the 1113c, sure, but am I happy that DAL is doing well and that our claim sold well and that we will all see more in PC-5 recovery, profit sharing and pay raises due to DAL's strong performance, you bet.

 

[Old School]

Very impressive. Especially with $70+ oil for much of the quarter. Hopefully this profitable trend will continue for all of us who are lucky enough to have airline jobs.

 

[FDJ2]

. Just thought there would be a call to arms by the pilots to get some back

We just got about $1.2B back through our claim sale, which was bolstered by among other things, DAL's strong projected earnings. The rest of what comes back will also come via our contract, with pay raises attached to profits and profit sharing. As far as getting it all back, we're less than 2.5 years away from our amendable date and 19 months from exchanging openers. The better the company does, the more we'll get back.

 

[Palomino]

Very impressive. Especially with $70+ oil for much of the quarter. Hopefully this profitable trend will continue for all of us who are lucky enough to have airline jobs.

i'm tired of the high-priced oil argument against worker wages. it's crap. cost of business goes up - stick it to the consumer.

this airline return-to-profitibality trend only indicates that the market price of oil has little bearing on a well-run machine.

truckers, freighters, newspaper route runners, lawn workers all are affected by the price of oil. pass it down the line - TO THE CONSUMER - and stop crying to me that oil keeps an airline from turning a profit. it's all crap.

and this quarter especially proves that. it's almost a level playing field now with hedging being of little use in these turbulent crude oil pricing times.

time to take it back...

 

[FDJ2]

I'm glad to see things picking up. Keep Captain Moak in office and you'll have some great leadership going into negotiations in a couple of years.

Lee Moak has done a great job, and while I have not supported everything the MEC has done, they have charted a strategic plan that seems to be paying off.

Will we keep Lee? That's probably up to Lee, my guess is that he's had about enough. I'd be surprised to see him run for re-election, but I've been surprised before, so I won't rule it out.

 

[FDJ2]

So, what about the 32.5% paycut in 2004 before the 14%.

We were still industry leading after the 2004 cuts. It's hard to keep pay rates that have our F/Os making more than an AA captain when you're losing billions. Do they count yes, but they weren't a part of this contract.

How much do you pay for health care now compared to before LOA 51/current contract?

The same

What about scope?

That's the worst part of our contract, imo, but keep it in perspective.

30 76 seat jets over 3 years, hmmmm, that's about 180 total seats. Yeah, we caved.

What about sick leave? Vacation? Hmmm ... No concessions?!

Sick leave is still industry standard if not better than most, if you only use 240 hours over a three year period, you will have experienced no cut whats so ever. I didn't lose a day of vacation, and I kept my work rules.

You're right about negotiating with the gun to your head and the guys that claim you caved in without reason are off base. But, your head is in the sand if you don't think that you took meaningful concessions that helped produce this bottom line.

Of course we took concessions that helped the bottom line, but we got back over $1.21B in May, which is significantly more than the total concessions of LOA 51 and we'll continue to get more back whenever the company posts a profit.

 

[FDJ2]

The real net profit was about 380mil. In realty It's not that much.

Yes it is.

 

[Sedona16]

The real net profit was about 380mil. In realty It's not that much.

Its more than SWA made last year for the same quarter. Its more than SWA made this year for the same quarter. If it continues it would be almost 1.6 BILLION for a fiscal year....double what Delta conservatively projected for the first year out of bankrupsy. Delta based its profits on oil at $70/barrel.

Not sure how you conclude "It's not that much"? Sounds like sour grapes.