Delta reports $6.4 BILLION loss for 1st qtr.

[Tanker Clown]

Well, in that case, I hope you post another $6 billion loss three months from now. Good luck

 

[Jmoney]

Precisely....

For the last time, we didn't lose 6.4 billion. Geez, we would not be flying right now if we lost that much.

Delta-Northwest–When Losing Money Helps

Posted by Stephen Grocer
When is a $10.5 billion loss good?
Well, Delta Air Lines and Northwest Airlines may have found “the silver linings in multi-billion dollar losses,” writes BusinessWeek’s Justin Bachman on the Traveler’s Check blog. The two airlines reported earnings Wednesday and that $10.5 billion number is the combined loss the pair reported.
Delta and Northwest, of course, need to gain regulatory approval for their merger, one that has already stirred opposition from politicians. (In fact, the two firms’ CEOs are on Capitol Hill defending the merger.) But here’s the thing, much of the red ink wasn’t from operating losses, Bachman points out. The airlines posted a first-quarter loss before special items that amounted to a combined $465 million and then wrote down $10 billion in goodwill to reflect their slumping share prices. But the average person won’t look beyond the $10.5 billion number, and “it is a persuasive amount, one that can help sway the average Joe or Jane who may not care to read into the finer print,” Bachman writes.

This was exactly my earlier point..... Problem is that this is a very dangerous strategy.

If DAL/NWA are trying to court favor with the govt by looking so desperate, they should be aware that this could backfire......

If they look too bad, their credit ratings will go down to junk bond status (again) and the credit markets will not touch them with a 28 ft pole. The fuel hedges will evaporate, the credit card processors will increase their holdbacks, and boom! Bankruptcy again!!! This time liquidation would be certain. Lot of good those 777s will do you then Gen!

Credit ratings are not to be trifled with-if theirs is downgraded fast enough, this chain of events will happen before approval would get granted......

-Nice strategy for gaining govt approval.
-Stupid strategy for staying in business very long if the merger gets held up for any reason.

 

[737 Pylt]

This was exactly my earlier point..... Problem is that this is a very dangerous strategy.

If DAL/NWA are trying to court favor with the govt by looking so desperate, they should be aware that this could backfire......

If they look too bad, their credit ratings will go down to junk bond status (again) and the credit markets will not touch them with a 28 ft pole. The fuel hedges will evaporate, the credit card processors will increase their holdbacks, and boom! Bankruptcy again!!! This time liquidation would be certain. Lot of good those 777s will do you then Gen!

Credit ratings are not to be trifled with-if theirs is downgraded fast enough, this chain of events will happen before approval would get granted......

-Nice strategy for gaining govt approval.
-Stupid strategy for staying in business very long if the merger gets held up for any reason.

All this knowledge and the best you could do was ATR f/o at ASA??imp:

737

 

[Bdfg1]

All this knowledge and the best you could do was ATR f/o at ASA??imp:

737

6.4 ba ba ba BILLION! :laugh: :laugh: :laugh:

 

[737 Pylt]

6.4 ba ba ba BILLION! :laugh: :laugh: :laugh:

S S S S S S Staple......Furlough fodder!
BTW, how were those losses at LCC Steven?


737

 

[Schiphol]

I'm sure its already been covered, but I don't want to read 8 pages of blather to see if it has.

The $6Bn was a financial accounting write down, only. There isn't any 'positioning' of the company for making the merger cheaper. If the outstanding shares of the company lose value, you have to account for that in a 10Q.

It is what it is. Here is to hoping that NOBODY gets furloughed and as soon as the companies are combined oil falls back to 70-80 bucks a barrel.

 

[enuffalready]

All this knowledge and the best you could do was ATR f/o at ASA??imp:

737

yup! just as I am sure there are FO's at delta who have no desire to be captain for various reasons, there are lots of guys I have met at ASA, both CPT and FO that just enjoy flying. Funny, You remind me of a 76-400 FO (former navy) I met while jumpseating to florida back in 2001. He asked much I made flying that old E-120 at ASA. I told him $19 an hour, and he looked at me and said " $19 an hour?? with our new contract my raise was more than that" at first I thought, wow, what a dic_. but then i smiled, looked at the captain, who i knew, and who knew my status in regards to financial independence, then looked back at the FO and said, "wow that is impressive mr jumbo jet pilot, when you get airborne can you show me how all that fancy stuff works"

the captain( former air force), who is now retired, and I still laugh at that one. doesn't matter what you fly or whether you try to polish up that turd with a double breasted jacket, a turd is still a turd

 

[JoeMerchant]

He asked much I made flying that old E-120 at ASA. I told him $19 an hour, and he looked at me and said " $19 an hour?? with our new contract my raise was more than that" at first I thought, wow, what a dic_. but then i smiled, looked at the captain, who i knew, and who knew my status in regards to financial independence, and just said, "wow that is impressive mr jumbo jet pilot, when you get airborne can you show me how all that fancy stuff works"

the captain( former air force), who is now retired, and I still laugh at that one. doesn't matter what you fly or whether you try to polish up that turd with a double breasted jacket, a turd is still a turd

:laugh: :laugh: :laugh: :laugh: :laugh: :laugh: :beer:

 

[Occam's Razor]

6.4 ba ba ba BILLION! :laugh: :laugh: :laugh:

Hey, Einstein...they didn't have $6.4 ba ba ba BILLION to lose.

Think about it...

(or not)

 

[737 Pylt]

Well, in that case, I hope you post another $6 billion loss three months from now. Good luck

The write down was not an operating expense and that did not and will not factor into any economic discussion we have with the company. This is a paper loss and not a long term expense. Absent this write down, Delta lost $274 million last quarter.
How much did LCC lose this quarter, and compare them in size to Delta.

737