Delta Posts $1.77B profit

[anewunion]

#1. Let's not compare DAL with SWA. I like to keep apples with apples.

#2. 380 mil. as a Q2 profit from a 8.7 Bil. mkt cap. company is not the best R.O.N. Please understand Q2 has always been a stong time of the year for the airline industry. In other words, this is the time to shine.

#3. DAL used a split between the new accounting and the old. This makes it very hard to follow the results from an investors prospective, Hence the stock didn't move very much.

and #4.

Trust me, there are no sour grapes here. DAL will be a very strong Intl. airline in the coming years. My comment was directed towards the folks that believe DAL was only making money because of it's employees give backs. I feel that this is a very complicated senerio, and by making 380 mil. out of BK. is not the tells of a robbery.

 

[Benjamin Dover]

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.

FDJ,

I'm not going to debate the details with you, but my points were the Delta pilot group gave much more in concessions than you alluded too. I know because I used to work there and lived under LOA 51 myself for awhile. The last contract prior to your current one was C2K. Are your pay rates in your current contract just 14% less than your rates in contract 2000 or a bit more? I think over 40% less is a signficant concession that will take quite some time to get back and the claim sale does not equal wage concessions dating back to December '04.

Check your old pay stubs to see what your monthly deduction is for health care compared to C2K.

Maybe you kept the same number of vacation days, but what about the amount of your bank?

So, be proud of Moak, et. al. and DALPA's ability to keep much more intact than UAL, but I think you're under-stating the contribution of the pilot group to the company's performance.

I have many buds there and hope Delta continues to do well. I also hope the Board chooses wisely in selecting the next CEO.

Regards,

BD

 

[FDJ2]

#1. Let's not compare DAL with SWA. I like to keep apples with apples.

How about profits to profits?

#2. 380 mil. as a Q2 profit from a 8.7 Bil. mkt cap. company is not the best R.O.N. Please understand Q2 has always been a stong time of the year for the airline industry. In other words, this is the time to shine.

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.

I'm not sure what other airlines posted a profit of 70 cents/share when shares are selling for about $21, but maybe you can point them out for us.

#3. DAL used a split between the new accounting and the old. This makes it very hard to follow the results from an investors prospective, Hence the stock didn't move very much.

Or maybe the stock already made a run based on projections that DAL would outperform.

and #4.

Trust me, there are no sour grapes here. DAL will be a very strong Intl. airline in the coming years. My comment was directed towards the folks that believe DAL was only making money because of it's employees give backs. I feel that this is a very complicated senerio, and by making 380 mil. out of BK. is not the tells of a robbery.

Good point, but that's another subject in and of its self and doesn't change the fact that DAL is a strong performer and has put up solid numbers.

 

[FDJ2]

First of all, thanks for the good wishes.

Lee Moak was not responsible for LOA 46, which was a huge concession.

We can't pretend that DAL lives in a bullet proof glass bubble where pilot wages and benefits can be nearly double their competitors. Were pay cuts and concessions required to return DAL to profitability, yes they were. Without them DAL would not have received the financing it needed to stay in business and once in bankruptcy, do you truly believe the pilots would have escaped with their contract, let alone C2K intact? Given the economic, political and legal landscape at the time, the DAL pilots did an exraordinary job defending themselves and preserving as much as they have and they have already begun to reap some of the rewards for their sacrifices.