Delta Q2 Profits

[SpauldingSmails]

http://www.marketwatch.com/story/delta-air-lines-profit-up-17-as-traffic-rises-2014-07-23

So far, so good. Apparently fueled by domestic bookings.

 

[Dornier 335]

Excuse you! This is GL'S job. You just spoiled his moment!

 

[General Lee]

Another great thing so far is that DL has poured almost $440 million into the profit sharing pool, after Q1 and Q2. Last year the total was $505 million for the whole year, and that equated to a Feb 14th check equivalent to about 8.6% of your W2. The first two quarters are usually weaker than the last two. So, things are looking good, and that profit sharing check also has a DC Fund contribution of 15% on top of that too. So far, so good!


Bye Bye---General Lee

 

[Mercyful Fate]

Holy hell, those 717's have changed the game!!

 

[General Lee]

Holy hell, those 717's have changed the game!!

You bet, but here's some highlights from the Q2 conference call this morning, via A. Berri from Benzinga dot com:



Highlights From The Call:

Delta announced 9 percent of top line growth for the quarter and 1.4 billion pre tax profit.

Passenger revenue increased by $772 million (nine percent) for the quarter.
$100 million in buy back in shares, Delta repurchased 12.4 million shares in the quarter.

4 points margins expansion, $1.5 billion free cash flow
11 percent improvement in baggage performance.

Delta's management was proud to announce the airliner currently obtains the lowest capital cost per aircraft in the sector. Ex fuel gases was flat for the quarter.

Delta JD reported 30 percent capacity rate.
Non-fuel cost 3 percent annually, previous goal given. Non-fuel cost decreased by 2 percent for each of the last four quarters.

Fuel expense declined by $168 million due to crude hedge benefits. Delta's average fuel price was $2.93 per gallon for the June quarter, including $99 million in settled hedge gains. Delta's operations at the refinery made a $13 million profit for the June quarter, $64 million increase year-over-year. Fuel expense decreased by 40 million in the quarter.

Forecast operating margin between 15 to 17 percent in Q3.

In a recent study, 85 percent of travel managers plan to continue to use delta for future flights.

Total unit revenues increased by 7 percent, while domestic unit revenue grew 6 percent. More than 60 percent of business is domestic.

Latin unit revenues were flat and demand weakness around the World Cup.

In pacific network restructuring decreased due to weaker yen. Delta holds a yen hedge of $130 million.

Delta plans to improve international capacity.

Capacity situation in transatlantic to be a concern reporting 8 percent unit revenue.

Increased intra Asia flights by 10 percent.

Operating expense increased 3 percent due to profit sharing in the quarter.

Maintenance savings reducing maintenance costs by $60 million.

Delta investing in new technology with new systems for report agence.

Current prices of crude hedged should add another $100 million in benefit.

Guidance for the second half of 2014 to maintain capex in the 2 to 3 billion range.

Joint venture in winter quarter (second half of Q4 to first half of Q1) was between 1 to 3 percent nearly half of its previous amount.





Bye Bye---General Lee

 

[Crash Pad]

Just wait until the hedges run out!

 

[General Lee]

Just wait until the hedges run out!

Do you mean the hedges on the Yen? They are worth $130 million I believe. Be more specific...


Bye Bye---General Lee

 

[RJLoser]

Sorry GL: Not as good as American/Airways... 1.5B

 

[SpauldingSmails]

Sorry GL: Not as good as American/Airways... 1.5B

Although still edged out by AAG, the net profit numbers were considerably closer.

 

[johnsonrod]

Sorry GL: Not as good as American/Airways... 1.5B

Parker's bar tab will hit at least $200 million. Gotta factor that in.