Delta Reports $379 Million Quarterly Profit

[Captain Fulough]

This is good news for all pilots. Salaries will start to recover as profits continue. Nice job! :beer:



ATLANTA, Jan. 25, 2012 /PRNewswire/ -- Delta Air Lines (NYSE: DAL - News) today reported financial results for the December 2011 quarter. Key points include:

Delta's net income for the December 2011 quarter was $379 million, or $0.45 per diluted share, excluding special items(1). This is a $221 million improvement year over year.

Delta's net income for 2011 was $1.2 billion, excluding special items, as the company offset $3 billion higher fuel expense through strong revenue performance and its fuel hedging program.

Delta's GAAP net income was $425 million, or $0.50 per diluted share, for the December 2011 quarter and $854 million for 2011.

2011 results include $264 million in profit sharing expense, including $89 million in the December quarter, recognizing Delta employees' contributions toward meeting the company's operating and financial goals.

Delta's adjusted net debt at the end of 2011 was $12.9 billion, a $4.1 billion reduction from 2009.

"Delta people pulled together in 2011 to produce a solid profit, strong cash generation, and the best operational performance in the industry for our customers. I want to thank them for their hard work through a challenging year and congratulate them on earning $264 million in profit sharing and $60 million in Shared Rewards for their exceptional performance," said Richard Anderson, Delta's chief executive officer. "Looking forward to 2012, we will continue our commitment to sustained profitability and superior returns by growing and diversifying our revenues, while taking a disciplined approach to capacity, costs and capital spending."

Revenue Environment
Delta's operating revenue grew $610 million, or 8%, in the December 2011 quarter compared to the December 2010 quarter. Load factor increased to 81.7%, with traffic down 3% on a 3.5% decrease in capacity.

Passenger revenue increased 8%, or $555 million, compared to the prior year period. Passenger unit revenue (PRASM) increased 12%, driven by an 11% improvement in yield.

Cargo revenue increased 8%, or $20 million, on higher cargo yields.
Other revenue increased 4%, or $35 million, from higher third-party maintenance revenue.

 

[DieselDragRacer]

Delta's adjusted net debt at the end of 2011 was $12.9 billion, a $4.1 billion reduction from 2009.

Not that raises aren't deserved, I'm not sure how or why you would start handing out raises when you have $12.9 billion in debt but to each his own.

 

[jonjuan]

Not that raises aren't deserved, I'm not sure how or why you would start handing out raises when you have $12.9 billion in debt but to each his own.

20% raises since 2009 when debt was $17 billion. How or why?

 

[Superpilot92]

20% raises since 2009 when debt was $17 billion. How or why?

bingo, they're paying down debt fast and still producing profits along with yoy increases in pay. its time to repay the rest of whats due

 

[On Your Six]

If they get the debt down to $10 billion (from $18 billion in 09) by the end of 2013, they will save an additional $500 million per year in interest payments. That is huge, and can help buy some planes and pay more to employees.


Godspeed!


The OYSter

 

[Andy]

Very nice job Delta.

Be careful of 'adjusted net debt'. It's not total debt; it's adjusted total debt minus cash, cash equivalents, and short term investments. I don't agree with subtracting cash from total debt; you need a metric ton of cash on hand to keep an airline running day to day.
Delta's done a great job of reducing adjusted total debt over the last couple of years; I just don't think that they should subtract out cash/cash equivalents on hand. If Delta decides to increase its cash/equivalents on hand considerably and stop paying down debt, this would show up as lower 'adjusted net debt'. Here's an article from last quarter about this subject: http://travel.usatoday.com/alliance...---Charts-of-the-Day-Delta8217s-Debt/558252/1

I also noticed that Delta reduced capacity in 2011. I saw that same trend in United's numbers (2011 release is tomorrow) in the first 3 quarters' numbers. I haven't gone over AMR's numbers but they probably have the same trend. It looks like both United and Delta are pulling down capacity (both mainline and regional) while increasing load factors.

Again, very nice numbers Delta.

 

[Acey]

If they get the debt down to $10 billion (from $18 billion in 09) by the end of 2013, they will save an additional $500 million per year in interest payments. That is huge, and can help buy some planes and pay more to employees.


Godspeed!


The OYSter

They're saying they'll save $300 of that already for '12 with what has already been paid down. So we should see a nice acceleration of profit as we near their target.

Acey

 

[RedRum]

Why the hate?

Seriously I don't understand why people are such haters. We made a profit for the entire year and quarter.

There is nothing worse than these Debbie Downers that come on here and try to say we don't deserve a profit sharing check because our debt is high. The company is working at mitigating the debt load. You can't do it over night. We are still far behind what we should be making.

How about trying to focus on the positive instead of the negative. People, if you make the argument now that Delta pilots don't deserve a pay raise or a bonus, you are in effect, saying that YOU don't deserve a pay raise when your company does well.

Time for an end to all the hate on here.

 

[1st Rate]

Nice job Delta!!