Delta reports 4Q loss

[Poahi]

You can erase a fuel only loss by adding fuel surcharges to cover it.
Bye Bye--General Lee

History has proven this false. They can't adjust the price of their product to meet cost. That's why the airline industry trades at such low multiples. If they raise prices, load factor and market share drop. Delta's Q4 loss was simply because expenses exceeded revenue. Delta's debt holders, shareholders and employees have paid for lower ticket prices because of this irrational pricing strategy.

A merger gives them more pricing power, but historically, airlines have had little price discipline so who knows. Fuel prices are really going to affect losses this year and some in Congress are going to fight increases in ticket prices by attempting to block mergers.

 

[Noserider76]

A loss for the quarter stinks but DL is spending serious money upgrading it's product to hopefully pay future dividends. New state of the art entertainment systems are being installed on the transcon fleet, food is being upgraded, and new international stations are being opened. I don't see any other domestic carriers investing in their product the way DL is.

 

[jke406]

some in Congress are going to fight increases in ticket prices by attempting to block mergers.

Congress will hopefully be catching a clue that prices are going to go up far more if one of the legacies tanks.

 

[Tanker Clown]

A loss for the quarter stinks but DL is spending serious money upgrading it's product to hopefully pay future dividends. New state of the art entertainment systems are being installed on the transcon fleet, food is being upgraded, and new international stations are being opened. I don't see any other domestic carriers investing in their product the way DL is.

Kinda like that time they upgraded a bunch of 757's, called it Song, and said good bye to getting killed by Air Tran? Then there was simpli-fares or some other nonsense that basically did away with the high dollar last minute tickets. I'm not sure it that went the same way as Song.