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Delta Posts 2nd Qtr Results, Ends Qtr with $5.4 Billion Liquidity

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Why was Delta's systemwide RASM performance a little worse than their peers? Delta's systemwide RASM was down 19.9% (including over 25% drop for the Atlantic and Pacific) while American, United, and Continental were in the 16-17% range.
 
Yep, it was. It is also the last quarter we will take a hedge related loss.

Overall better than I expected. Yield is down a ton. Not good, but we had an operating profit, which is great. Cash position is awesome!
 
ACL65PILOT said:
Yep, it was. It is also the last quarter we will take a hedge related loss.

Overall better than I expected. Yield is down a ton. Not good, but we had an operating profit, which is great. Cash position is awesome!
Click to expand...

Considering the % size that DAL is larger than CAL, AMR and UAL, I'll take the numbers and CASH ON HAND all day long. UAL is looking scary.....
 
Here are some bullet points:

Passenger revenue decreased 25%, or $2 billion, compared to the prior year period due to the global economic recession, the estimated $125 million to $150 million impact of the H1N1 virus and a 7% capacity reduction. Passenger unit revenue (PRASM) declined 20%, driven by a 19% decline in yield.

Cargo revenue declined 54%, or $200 million, reflecting lower volume and yield due to the recession. Freighter capacity was 50% lower year over year, as Delta continues to reduce capacity to achieve its plan of discontinuing all freighter flying by the end of 2009.

Other, net revenue grew 15%, or $123 million, primarily due to increased baggage fee revenue and improved terms from Delta's affinity card agreement with American Express.

Delta's net loss for the June 2009 quarter was $199 million, excluding $58 million in merger-related expenses(1), or $0.24 loss per share. Delta's reported net loss for the June 2009 quarter was $257 million, or $0.31 per share.

In the June 2009 quarter, consolidated unit costs, excluding fuel and special items, were up 2%, on a 7% decline in system capacity
Delta has achieved more than $200 million in synergy benefits in the first half of 2009 from its merger with Northwest Airlines.
Delta generated $834 million in operating cash flow during the quarter and had $5.4 billion in unrestricted liquidity as of June 30, 2009.

As of June 30, 2009, Delta had $5.4 billion in unrestricted liquidity, including $4.9 billion in cash, cash equivalents and short-term investments and $500 million available under an undrawn line of credit. Delta generated $834 million in cash from operations, and $509 million in free cash flow for the quarter.

Seems to be a decent performance in light of the current environment.
 
I've been a glass half emtpy individual lately, and have to agree not too bad. Still a couple hundred million dollar loss, would be nice to have a solid profit report.
 
The operational profit is huge. Do not dismiss that. Take the error in fuel hedging away and we still would have made money with the merger related expenses. In this economy that is very important.
What that says is we have been doing about 90% of this as best as we could.
 
I do agree, I'm very impressed. I just wish we could finally start making some profit once eevrything is factored in. I hate saying we were operationally profitable, just lost our asses in hedging, or some other factor.

If I wasn't on reserve right now I'd actually be raising a cold one to these numbers.
 
Just listening to the call - think Delta is approaching things in a very conservative manner - which in today's environment is a good plan of action. IMO - I believe DL is going to sit back a bit and let the market forces dictate the potential failure of one or more of its competitors as they will be in one hell of great position to take advantage of others failures. As much as I hate to see any company and its employees be taken down and liquidated - I see no other way around it if the current climate continues through this fall and into early next year. May find LCC and UAL for example , sell off slots, gates, aircraft etc just to raise cash to stay afloat and to avoid the big ugly B word and possibly the uglier L word.
 
Just 3 months ago, Bastians was quoted as saying that lower fuel prices would overcome the drop in revenue and that Delta would be profitable for 2009. That was a real quick change of tune.

http://finance.yahoo.com/news/Delta-Air-Lines-no-longer-rb-2640995240.html?x=0&.v=4

Of course, just 6 months ago Obama said unemployment wouldn't go above 8% if Congress would rush a stimulus plan through. We know how that is going.

Sometime you are better off not making predictions. I am sure Bastians would like to take that one back now.
 
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DELTA AIR LINES, INC.
Selected Balance Sheet Data
(In Millions)

Cash and cash equivalents:

June 30, 2009: $4,851

Dec. 31, 2008: $4,255


As of June 30, 2009, Delta had $5.4 billion in unrestricted liquidity, including $4.9 billion in cash, cash equivalents and short-term investments and $500 million available under an undrawn line of credit. Delta generated $834 million in cash from operations, and $509 million in free cash flow for the quarter.

How does it compare to 1Q 2009

[FONT=Arial,Arial][FONT=Arial,Arial]As of March 31, 2009, Delta had $5 billion in unrestricted liquidity, including $4.5 billion in cash, cash equivalents and short-term investments and $500 million available under an undrawn line of credit. In addition, net cash collateral posted with hedge counterparties was approximately $400 million
[/FONT][/FONT]
 
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Yes, FDJ2 we are in a great position to weather the next 12 months.

The chips are starting to fall. Give it a few more weeks, months and the landscape will be vastly different.
 
"We are not planning for any meaningful recovery in the coming months and no longer expect to be profitable this year," Chief Financial Officer Hank Halter said in a memo to staff that was including in a regulatory filing.
Delta reported a quarterly loss of $257 million, or 31 cents per share. It said the recession drove down revenues by more than $3 billion in the first half of the year.
Delta said it would continue to "right size" capacity and keep unit costs in check, but it reiterated that it may need to cut more jobs.




Not looking to good.
 
Just curious, do any of you financial types know the last time Delta posted a quarterly profit?

This is after all the same company who's business plan several years ago consisted of letting US Air go under then picking up the pieces. Fast forward five years and guess what?? They have given away even more of the domestic market to Southwest, Airtran, and Jetblue and still waiting for US Air to go under.

Hope that international thing works out for you guys but I see some major downsizing err I mean "right sizing" by the end of the year.

Call me crazy
 
Yep-

$200 million is not "real money" any more.... Sure would be nice to see $200 million in the profit column! That will probably occur just as soon as those Africa routes rally kick in!

-Congrats! What's a couple hundred million among friends, anyhow?
 
crj567 said:
Yep-

$200 million is not "real money" any more.... Sure would be nice to see $200 million in the profit column! That will probably occur just as soon as those Africa routes rally kick in!
Click to expand...

Profits should start to kick in when the alabatros of a bloated RJ fleet is trimmed down. Word is DAL will be dumping a hundred more RJs.
 
Profits should start to kick in when the alabatros of a bloated RJ fleet is trimmed down. Word is DAL will be dumping a hundred more RJs.
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crj567, your heart felt concern is "rally" appreciated...thanks for your concern, and enjoy the rebuilding of Delta mainline at the expense of the RJ!
 
400AHole/chuck yogurt/lawman/einstein/texas crotch rot/boris yelling/lame lizard/sky fly said:
"We are not planning for any meaningful recovery in the coming months and no longer expect to be profitable this year," Chief Financial Officer Hank Halter said in a memo to staff that was including in a regulatory filing.
Delta reported a quarterly loss of $257 million, or 31 cents per share. It said the recession drove down revenues by more than $3 billion in the first half of the year.
Delta said it would continue to "right size" capacity and keep unit costs in check, but it reiterated that it may need to cut more jobs.




Not looking to good.
Click to expand...

Neither does your wife!:laugh:
Don't worry chuck, with your furlough at midwest and your excellent penmanship, maybe you can make it as a lav technician!
 
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