Delta posts profits thanks to Govt etc..

[General Lee]

Well, here are the 2nd quarter results, with profits thanks to the Gov't aid and selling a chunk of Worldspan.:



Delta Results Top Estimates

By Eric Gillin
Staff Reporter
07/17/2003 09:58 AM EDT
Click here for more stories by Eric Gillin


Delta Air Lines (DAL:NYSE - news - commentary - research - analysis) posted a second-quarter profit on Thursday because of government aid, but without the help, the airline had losses that were deeper than last year's quarter.

Excluding all items, like the $398 million it received from the government, Delta had a second-quarter loss of $237 million, or $1.95 a share, which is worse than the year-ago loss of $162 million, or $1.34 a share. The company topped analyst estimates of a $2.08 per-share loss.


Including government aid and the proceeds from the sale of its stake in Worldspan, Delta had a second-quarter profit of $184 million, or $1.40 a share. As with Wednesday's earnings release from American Airlines parent AMR (AMR:NYSE - news - commentary - research - analysis), Delta said it had an operating profit during the month of June, posting $31 million.

Delta management, partially because it's seeking wage concessions from its labor work force, was quick to downplay the apparent strength of this quarter.

"Even though we saw some initial postwar traffic recovery, the overall revenue environment remains weak. One-time events played the most significant role in Delta's June quarter results," said Leo Mullin, chairman and chief executive. "While encouraged by our progress, it is clear that Delta must remain diligent in our efforts to establish a viable revenue-to-cost relationship."


Notice the second to the last paragraph, concerning Delta management downplaying the results. And, there was also an operating profit for the month of June of $31 million. I am not saying things are getting a lot better for us yet, but this so called profit can't hurt, and labor will still take a lashing until management gets what they want, and then give themselves large bonuses. Very interesting indeed.

Bye Bye--General Lee

 

[NYRANGERS]

Well, here are the 2nd quarter results, with profits thanks to the Gov't aid and selling a chunk of Worldspan.:



Delta Results Top Estimates

By Eric Gillin
Staff Reporter
07/17/2003 09:58 AM EDT
Click here for more stories by Eric Gillin


Delta Air Lines (DAL:NYSE - news - commentary - research - analysis) posted a second-quarter profit on Thursday because of government aid, but without the help, the airline had losses that were deeper than last year's quarter.

Excluding all items, like the $398 million it received from the government, Delta had a second-quarter loss of $237 million, or $1.95 a share, which is worse than the year-ago loss of $162 million, or $1.34 a share. The company topped analyst estimates of a $2.08 per-share loss.


Including government aid and the proceeds from the sale of its stake in Worldspan, Delta had a second-quarter profit of $184 million, or $1.40 a share. As with Wednesday's earnings release from American Airlines parent AMR (AMR:NYSE - news - commentary - research - analysis), Delta said it had an operating profit during the month of June, posting $31 million.

Delta management, partially because it's seeking wage concessions from its labor work force, was quick to downplay the apparent strength of this quarter.

"Even though we saw some initial postwar traffic recovery, the overall revenue environment remains weak. One-time events played the most significant role in Delta's June quarter results," said Leo Mullin, chairman and chief executive. "While encouraged by our progress, it is clear that Delta must remain diligent in our efforts to establish a viable revenue-to-cost relationship."


Notice the second to the last paragraph, concerning Delta management downplaying the results. And, there was also an operating profit for the month of June of $31 million. I am not saying things are getting a lot better for us yet, but this so called profit can't hurt, and labor will still take a lashing until management gets what they want, and then give themselves large bonuses. Very interesting indeed.

Bye Bye--General Lee

Now, if we can only get the Gov't to give us $400 million every quarter

 

[General Lee]

That would be nice, but highly unlikely of course. That is why we will likely be giving 10-15% of our pay ( 10% equals $180 mil in savings per year), and the other groups will likely be giving 10-15% also. If we gave 15% (or $270 mil in annual savings)--and the other groups gave the same, I bet our losses would decrease a lot. Remember, the economy is starting to turn, the War is over, gas prices will eventually come down, and business travelers will probably return. And, this is one of those down cycles we get every 10 years anyways.

Bye Bye--General Lee

 

[JJJ]

NWA has also posted a profit... with the help of some govt money and from selling it's intrest in Worldspan.

[ST. PAUL, MINN. – (July17, 2003) – Northwest Airlines Corporation (NASDAQ: NWAC), the parent of Northwest Airlines, today reported a second quarter net profit of $227 million or $2.45 per diluted common share. This compares to a second quarter 2002 net loss of $93 million or $1.08 per common share.

Northwest’s second quarter 2003 results included $387 million of unusual items:


A $209 million reimbursement of security fees received from the U.S. government under the Emergency Wartime Supplemental Appropriations Act;

A $199 million gain resulting from the sale of Northwest’s interest in Worldspan; and

A $21 million charge related to the write-down of certain aircraft.
Excluding these unusual items, Northwest reported a second quarter 2003 net loss of $160 million or $1.86 per common share.

“Second quarter results were impacted by the war in Iraq and SARS (Severe Acute Respiratory Syndrome). Moreover, we are still not seeing meaningful improvement in the underlying financial performance of the airline,” said Richard Anderson, chief executive officer.

“Excluding the unusual gains resulting from the sale of our Worldspan investment and the one-time federal reimbursement received under the Wartime Act, Northwest’s $160 million loss was its worst second quarter performance in company history,” Anderson continued.

Anderson added, “While we aggressively reduced capacity and parked aircraft in response to the Iraq war and SARS, the revenue environment, at best, is showing marginal improvement. Clearly, with losses of the magnitude that we are experiencing, our top priority remains to bring the company’s costs in line with our new level of revenues. We continue to work with our labor union leaders and our suppliers to address our cost of operation, as Northwest must align its cost structure with its revenue expectations and with those of our major competitors.”

What a line of BS. "Our new level of revenues." Maybe the current level, but not the new level. They're not going to stay like this forever.

Do you think the company will want to bring costs in line with revenues when they start making profits again? I suspect that if and when unions give consessions,revenues will return and the airlines will start to make a profit again.

 

[General Lee]

I don't know about NW, but Delta has probably run out of "One time charges." They have cut over 16,000 jobs, (including 1310 pilots, darnit) added hundreds of Kiosks to replace ticket counter people, and parked all of the costly 727's and 10 or 11 MD-11s. Delta is a leaner airline now compared to pre-9-11. Something was pointed out on the Dalpa.net that was interesting. During the March 31st, 2003 quarter report Delta said they had $1.9 Billion in cash, and now they reported they had $3 billion in cash and $2.8billion of it was unrestricted. So, they gained over $1billion in cash and we're still doom and gloom according to Delta management. Hmmmmm. I know they sold Worldspan and got some Gov't money, and they had a bond sale, but they still want more from the employees......And they want bonuses for management.

Bye Bye--General Lee

 

[Networ-King]

And they'll get it.........


Sorry could'nt help myself.

 

[Ninja]

Excluding all items, like the $398 million it received from the government, Delta had a second-quarter loss of $237 million, or $1.95 a share, which is worse than the year-ago loss of $162 million

Excuse my fuzzy math, but a $237 million loss over a quarter = ~$2.6 mil/day.

 

[Gulfstream 200]

Damm, as a taxpayer, I want my money back.

 

[General Lee]

Yes, but we supposedly made $31 mill in June, and we some how aquired another BILLION in cash on hand. Sounds like fuzzy math to me..???? But, the numbers speak for themselves. Do we include Delta Connection numbers in our Delta mainline portfolio? They keep saying that they are so profitable---it would probably help us--which is good.

Bye Bye--General Lee

 

[metrodriver]

And the results could have been $13 million better without bonusses for mullin &co.

 

[buzzfly]

so...the airlines that have yet to receive concessions show no signs of improvement in yields. The ones that have gotten cuts via bankruptcy or not do show improvement. The extraordinary stuff is BS and ignored by wall st.

I do not know what pax are paying, but vacationing around the country has been difficult because of loads.

Any thoughts?

 

[General Lee]

We've been packed, with all of our daily European flights jammed full. We had a great July 4th weekend also. But, if you read todays reports from all the Wall St. analysts downgrading us because the pilots are paid too much, I think that is a big joke. Wall Street does NOT like labor. They do not. They are out for the stock holder, and they want management to win with lower paying contracts. Do they down grade stocks when the management gets bonuses? Nope.

Bye Bye--General Lee

 

[FLB717]

General

Yes DCI is included in the DAL report (only one stock) and that adds to the bottom line. Becarful you semm up on DAL you could get called cocky because you support your company

 

[Jake]

Or Insecure! Sorry General I couldn't resist.

 

[Jake]

Or Insecure! Sorry General I couldn't resist.

 

[jarhead]

General.........

an excerpt from your above post....

"Wall Street does NOT like labor. They do not. They are out for the stock holder, and they want management to win with lower paying contracts."

This is hardly an epihany. Wall Street is about stock, and shareholer equirty. That is all they are about, and all they ever have been about. I sure hope Wall Street stays focused on Shareholder value........that's how I keep MY livelyhood going in retirement, as you no doubt will do also one day.

 

[wil]

General- you can thank your "redheaded" stepchildren (ASA,CMR) and Uncle Sam for the positive numbers! I don't give buddy passes anymore due to the high cost (300.00 international and you can buy a tik for not much more) and the fact that all our flights are over sold!! How is Delta not absolutely swamped in cash? There is no way that pilot salaries affect the bottom line that much. The high paying biz traveler is gone- for good. The internet has seen to that fact. I hope Delta fixes whatever is broke cause we have the load factors and there is no excuse not to be making money!! Fly safe- Wil

 

[80drvr]

General- you can thank your "redheaded" stepchildren (ASA,CMR) and Uncle Sam for the positive numbers

Can you substantiate this? I haven't seen a major break out a profit/loss for a wholly owned regional and would be interested in those numbers.

AMR acknowledges that RJ ASM's cost twice as much as mainline narrowbody. In a tough yield environmet, I've wondered how that makes sense other than reducing capacity while maintaining a market presence.

 

[wil]

Well, ASA has been profitable! Now, how Delta wants to issue these figures is up to them- I only know what I read off our internal newsletter and our numbers have been great! ok, except our on-time performance!
Don't let the ASM figures lead you down the wrong path. Simply put (and I'll use DFW-SAV as exp) the RJ on most routes can command premium fares. Let's say you want to fly from DFW to SAV with no connection. We have 3 daily flights. 150 seats available to the traveling public. With all the attractions of Savannah, Hilton Head, and the coastal islands (think J Lo and Ben Affleck) it is a safe bet that a lot of people want to travel to this destination. Now, since we have a limited amount of seats and people clamoring to fly direct it puts us in a good pricing senario. I know this sounds overly simplistic and I'm sorry for that but this truly is why the RJ is successful. Also, on thin markets where a city would not normally be served we get another advantageous pricing senario. And, we help mainline establish new service that hopefully will be replaced with larger equipment. I'll leave number crunching to the pilot CPA's on the board it gives me a headache! Fly safe- Wil