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Delta posts a record $1.37 Billion third quarter profit, also small refinery profit

General Lee

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Delta posts higher-than-expected profit, says outlook 'solid'
Reuters ? 5 hours ago

* Quarterly revenue up 6 percent helped by US, Europe
* Refinery posts $3 million profit
* Says bookings for holiday season are strong
* Shares up nearly 4 pct to new high

By Karen Jacobs

Oct 22 (Reuters) - Delta Air Lines Inc on Tuesday reported a higher-than-expected quarterly profit as fare increases and strong demand in the United States and Europe boosted revenue, sending its shares up nearly 4 percent to a new year high.

The U.S. carrier said its revenue outlook looked "solid" through the end of the year and that bookings for the holiday season were strong.

"Delta is leading the pack in unit revenue growth, in executing and in creative thinking," said Jim Corridore, an equity analyst with S&P Capital IQ. "Because of its strong cash generation, the fact that it is well ahead of the competition in its (merger) integration, it is able to do things that competitors can't do."
Corridore said the performance in passenger revenue, which rose nearly 11 percent domestically and 9 percent across Europe, suggested that Delta gained market share. Yield, a gauge of the average fare paid per mile flown, rose about 5 percent to 16.85 cents.

Delta, the second-largest carrier behind United Continental Holdings, said the October government shutdown hurt revenue by $20 million to $25 million. Still, it said margins would expand in the current quarter.

The airline forecast an operating margin, a measure of income to costs, of 7 percent to 9 percent, for the fourth quarter. The upper end of that range is higher than some analysts expected, such as Helane Becker of Cowen & Co, who had forecast 7.1 percent.

Delta, which paid its first dividend since 2003 earlier this year and was chosen to re-join the S&P 500 last month, has upgraded aircraft seats and expanded Wi-Fi and entertainment options to increase revenue. It has also formed partnerships with non-U.S. airlines such as Britain's Virgin Atlantic Airways to gain new passengers, and added flights in lucrative markets such as New York.
Those moves paid off in the third quarter. Delta said corporate revenue gains in banking, financial services and healthcare helped drive the strength it had in the United States, while its joint venture with Air France-KLM bolstered results in Europe. The airline also cited a "double-digit increase" in sales of seat-related products and other services.

To pare costs, Delta has been retiring fuel-guzzling planes, and it bought a Pennsylvania oil refinery last year that helped lower fuel expenses (Story on refinery profit, ).

"We expect to set an all-time profit record for Delta in 2013 and in turn expect to improve on that performance in 2014," Chief Executive Richard Anderson said during a conference call.

Last week, American Airlines parent AMR Corp posted a profit that topped estimates as revenue set a record. The third quarter is traditionally a strong period for U.S. airlines since it includes summer vacation travel.

Net income at Delta came to $1.37 billion, or $1.59 a share, in the third period, compared with $1.05 billion, or $1.23 a share, a year earlier.
Excluding a fuel-hedging gain and a charge from changes in Delta's fleet, profit was $1.41 a share, compared with the analysts' average estimate of $1.36, according to Thomson Reuters I/B/E/S.

Revenue rose 6 percent to $10.5 billion, and passenger revenue was up nearly 7 percent. Passenger revenue per available seat mile, an important measure also called unit revenue, increased 4 percent.

Shares of Delta were up 3.7 percent to $25.60 in afternoon trading on Tuesday after reaching $26.24 earlier in the session. Other U.S. airline stocks also rose, with United Continental gaining 2.3 percent to $31.26 and US Airways Group up 2 percent at $21.64.


Not bad!!!!


Bye Bye---General Lee
 
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freightdogfred

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"Because of its strong cash generation, the fact that it is well ahead of the competition in its (merger) integration, it is able to do things that competitors can't do."


true dat
 

tailhookah

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Who said that refinery was a stupid move? RA looking regal...

Tail
 

gobyebye

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Congrats General and all the other Delta folks! Sounds like your management is doing a heck of a job and its trickling down through the ranks. What a concept.
 

Ty Webb

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Yep. Congrats. A rising tide lifts all ships. Those 717s will probably provide even better numbers once they're integrated
 

islandhoper

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I think that Delta has become the best airline in the U.S. I wonder if SW had something to do with it... (maybe this is the new SW effect?) lol. The Airtran buy-out was certainly the best thing that happened to Delta in Atlanta. They upped their game in anticipation of a battle that never materialized.
 

bri5150

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Unfortunately it is not trickling down to those that are flying half of your passengers. Again, what Delta did to Endeavor is inexcusable; especially given their success at mainline. There is absolutely no reason to cause those pilots to lose their house and get divorces. I understand taking back flying, but the pay cuts that were forced down their throat (or vote yourself out of a job) is absolutely ridiculous! I no longer work their, but every time I see these posts about how successful Delta is, I feel obligated to raise awareness of how their business is actually run. I have many friends still at Endeavor and their are getting the crap beat out of them.
 
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ALGFLYR

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Can we turn this thread to a US Airways East/West battle General Lee style?? Lol...
 

Tweaker

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Easthole, you are stupid and you eat poop!
 

BILL LUMBERG

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Unfortunately it is not trickling down to those that are flying half of your passengers. Again, what Delta did to Endeavor is inexcusable; especially given their success at mainline. There is absolutely no reason to cause those pilots to lose their house and get divorces. I understand taking back flying, but the pay cuts that were forced down their throat (or vote yourself out of a job) is absolutely ridiculous! I no longer work their, but every time I see these posts about how successful Delta is, I feel obligated to raise awareness of how their business is actually run. I have many friends still at Endeavor and their are getting the crap beat out of them.

Gee Bri,

Where were you when Delta forced me to take a 45 percent paycut and got rid of my pension, meanwhile RJ's FOR EVERYBODY?!?!?!! It all rolls downhill.

Sure, this was a rhetorical exercise but you weren't the only one hurt by Mother D
 

BILL LUMBERG

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I think that Delta has become the best airline in the U.S. I wonder if SW had something to do with it... (maybe this is the new SW effect?) lol. The Airtran buy-out was certainly the best thing that happened to Delta in Atlanta. They upped their game in anticipation of a battle that never materialized.

Don't flatter yourself, if you think a"battle" in Atown made Delta better, you don't travel much out of the 404.
 

nwaf16dude

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I think that Delta has become the best airline in the U.S. I wonder if SW had something to do with it... (maybe this is the new SW effect?) lol. The Airtran buy-out was certainly the best thing that happened to Delta in Atlanta. They upped their game in anticipation of a battle that never materialized.

I don't know about this "best" thing, but the mainline operation at Delta is running better than I've ever seen these days. I've actually seen rampers running to be in position to catch us...even in DTW!

SWA certainly did us a favor when they bought Airtran, and not just in ATL.
 

JohnQ

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I don't know about this "best" thing, but the mainline operation at Delta is running better than I've ever seen these days. I've actually seen rampers running to be in position to catch us...even in DTW!

SWA certainly did us a favor when they bought Airtran, and not just in ATL.


Somewhere out there is a business case study in how you fix a broken system. At both PMDL and PMNW the ramp operation was a joke--never anyone to block you in, and when they finally showed/sauntered into position (after numerous radio calls) then there was not a gate agent to hook up the jetway.

That is no longer the case. Even the most jaded, cynical pilots acknowledge that in ATL it is a rare and notable event when the ramp guys are NOT in position, and I can't remember the last time I had to call for a gate agent. The bottom line is that operationally--at least "below wing"--DAL is running a stellar operation. However it was done, I salute the leadership that brought that about.
 

bri5150

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Gee Bri,

Where were you when Delta forced me to take a 45 percent paycut and got rid of my pension, meanwhile RJ's FOR EVERYBODY?!?!?!! It all rolls downhill.

Sure, this was a rhetorical exercise but you weren't the only one hurt by Mother D

Mesaba declared bk the day before my wedding and subsequently proceeded to get me furloughed through shamruptcy 2006. Who orchestrated that? Also, having a sick company and screwing people is completely different than one that is extremely healthy and screwing people. We all have paid our dues at some point, but it is usually because their company is losing money.

And on top of that, your story is the exact bs I am talking about. Everyone says how Delta is so great. How did you get there and how are they treating those outside the inner circle that are helping them with those profits? Just raising awareness is all.
 
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DTW320

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Unfortunately it is not trickling down to those that are flying half of your passengers. Again, what Delta did to Endeavor is inexcusable; especially given their success at mainline. There is absolutely no reason to cause those pilots to lose their house and get divorces. I understand taking back flying, but the pay cuts that were forced down their throat (or vote yourself out of a job) is absolutely ridiculous! I no longer work their, but every time I see these posts about how successful Delta is, I feel obligated to raise awareness of how their business is actually run. I have many friends still at Endeavor and their are getting the crap beat out of them.
Not defending what's going on there, but seriously? You're going to blame Delta Air Lines for people getting a divorce?? I've been married over 23 years, through the "commuter" years making $13k/year in the right seat, through furlough, through 40%+ BK paycuts, and a medical scare that took over 6 months to know if I would ever fly again. I would humbly suggest that if BK at Pinnacle caused these folks to get divorced, perhaps it was going to happen at some point anyway and perhaps they shouldn't have gotten married in the first place. IMO, If ANYTHING that happens at ANY airline, good or bad, has that kind of influence on your personal life your priorities are pretty screwed up... A little personal accountability/responsibility would be nice instead of blaming your employer for everything good or bad in your life.....

/rant
 

Muskycat

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Mesaba declared bk the day before my wedding and subsequently proceeded to get me furloughed through shamruptcy 2006. Who orchestrated that? Also, having a sick company and screwing people is completely different than one that is extremely healthy and screwing people. We all have paid our dues at some point, but it is usually because their company is losing money.

And on top of that, your story is the exact bs I am talking about. Everyone says how Delta is so great. How did you get there and how are they treating those outside the inner circle that are helping them with those profits? Just raising awareness is all.

Don't forget to point out that MAIR holdings had $120,000,000 in the bank the day Mesaba filled.
 

KarmaPolice

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Mesaba declared bk the day before my wedding and subsequently proceeded to get me furloughed through shamruptcy 2006. Who orchestrated that? Also, having a sick company and screwing people is completely different than one that is extremely healthy and screwing people. We all have paid our dues at some point, but it is usually because their company is losing money.

And on top of that, your story is the exact bs I am talking about. Everyone says how Delta is so great. How did you get there and how are they treating those outside the inner circle that are helping them with those profits? Just raising awareness is all.

Raising awareness of what? That Management cuts benefits and wages where and when they can get away with it if the market will support it? Thanks for the heads up, we had no idea that happens in the airline business, or anywhere else.

I sympathize with RJ people who took cuts. It sucks, no doubt. But my sympathy ends when they start whining like bri5150 and others, about how it should've been.

From day one RJ pilots know they are filling a market niche as people willing to work for a fraction of how pilots have been traditionally compensated. Problem is, there are so many of us willing to undercut each other's pay, management is able to take advantage of the situation.

Don't blame Delta management, it is THEIR JOB to get the best deal based on market realities. If they could pay us minimum wage C2015, they would do it. That doesn't make them bad or evil.

If you want to B**** and point fingers for what happend, Point the finger at yourself, and your fellow pilots who were willing to work for less than someone else for the same work, all because you were trying to leap ahead of your peers in the rat race. The whip saw is a boomerang. Endeavor people got screwed, but they were the screwers of others before that.

If you want to raise awareness, raise awareness that Pilots need to start unifying and working together to make progress in the labor market so things get better in the future and the whipsaw stops.

As pilots, we are a labor group with incredible responsibility and unique technical skills; a recipe for what should be outrageously great compensation. Yet we have been fractured and divided into groups that all undercut each other, and the result has been near constant erosion in pay and benefits over the last 30 years for everyone.
 

SplitBar

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Raising awareness of what? That Management cuts benefits and wages where and when they can get away with it if the market will support it? Thanks for the heads up, we had no idea that happens in the airline business, or anywhere else.

I sympathize with RJ people who took cuts. It sucks, no doubt. But my sympathy ends when they start whining like bri5150 and others, about how it should've been.

From day one RJ pilots know they are filling a market niche as people willing to work for a fraction of how pilots have been traditionally compensated. Problem is, there are so many of us willing to undercut each other's pay, management is able to take advantage of the situation.

Don't blame Delta management, it is THEIR JOB to get the best deal based on market realities. If they could pay us minimum wage C2015, they would do it. That doesn't make them bad or evil.

If you want to B**** and point fingers for what happend, Point the finger at yourself, and your fellow pilots who were willing to work for less than someone else for the same work, all because you were trying to leap ahead of your peers in the rat race. The whip saw is a boomerang. Endeavor people got screwed, but they were the screwers of others before that.

If you want to raise awareness, raise awareness that Pilots need to start unifying and working together to make progress in the labor market so things get better in the future and the whipsaw stops.

As pilots, we are a labor group with incredible responsibility and unique technical skills; a recipe for what should be outrageously great compensation. Yet we have been fractured and divided into groups that all undercut each other, and the result has been near constant erosion in pay and benefits over the last 30 years for everyone.

Why do a few Virgin guys think they have a dog in the fight? Pure hypocrisy as junior Delta FO's are out earning junior Virgin Captains They should worry fixing their own problems instead of throwing stones. Pathetic pay rates for a 320.
 
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