Delta reports $6.4 BILLION loss for 1st qtr.

[Bavarian Chef]

http://news.moneycentral.msn.com/printarticle.aspx?feed=BW&date=20080423&id=8526430


Northwest Airlines Corporation NWA today reported a first quarter 2008 net loss of $4.1 billion, or $15.78 per share. Reported results include a non-cash goodwill impairment charge of $3.9 billion. This compares to the first quarter 2007 when Northwest reported a net loss of $292 million. Excluding non-recurring, non-cash impairment charges and losses associated with marking-to-market out-of-period fuel hedges, Northwest reported a first quarter 2008 net loss of $191 million versus the first quarter 2007 when the airline reported net income of $73 million before the impact of reorganization items and out-of-period fuel hedge gains. Excluding taxes and out-of-period mark-to-market adjustments on fuel hedges, Northwest paid $2.77 per gallon for jet fuel in the first quarter compared to $1.85 a gallon in the first quarter of 2007, an increase of 49.7 percent

it's contagious -- now i am not feeling so bad about my taxes.

 

[Zipperhead]

Let me para-phrase what the general's response will sound like here...


"DAL has 9.2457 billion in the cash, we have 500 Boeing 777-300ers on firm order, 174 B767's on order. WE are hiring like mad, our stock will go back up to over $100/share once Oil drops back to $50/barrel. DALPA has stated all of this so it is going to happen. The NWA guys bring ZERO to the table and are lucky to have a job. They can continue to fly their POS old DC-9's. Staple them all....DAL is the BEST airline in the universe and we really didn't lose ANY money, it's just strategic accounting practices."


Or something like that....

 

[spinproof]

That is not a write down of assets, it's a write down of Market Cap. Also, an increase in Fuel costs in the billions with a loss of 250 million is what really counts.

HUH? Market Cap is not an asset?

 

[beech1900kid]

a good explanation of the non-cash charges

$3.9 Billion Non-cash, Non-recurring Accounting Charge Taken to Reduce Goodwill
The Company is required for accounting purposes to measure the value of goodwill annually or whenever significant events that could be indicators of a change in value have occurred. In completing our first quarter evaluation, we considered the impact of current high fuel prices, Northwest's recent stock price, other industry trends and the equity value of Northwest implied by the recent merger announcement and have determined that an impairment to goodwill is required. To make this determination, the Company compared the carrying value of its equity to its fair value. For purposes of this evaluation, fair value has been determined based on the implied market value of Northwest's equity in the announced transaction. As a result of this evaluation, the Company recorded a non-cash goodwill impairment charge of $3.9 billion.

 

[FlyinGuy]

Can you say TRAIN WRECK!!! Nothing to see here, just move right along.

 

[YourPilotFriend]

They have to make it look like they can't survive as stand alones going into the DOJ approval process.

 

[Kugelblitz]

Let me para-phrase what the general's response will sound like here...


"DAL has 9.2457 billion in the cash, we have 500 Boeing 777-300ers on firm order, 174 B767's on order. WE are hiring like mad, our stock will go back up to over $100/share once Oil drops back to $50/barrel. DALPA has stated all of this so it is going to happen. The NWA guys bring ZERO to the table and are lucky to have a job. They can continue to fly their POS old DC-9's. Staple them all....DAL is the BEST airline in the universe and we really didn't lose ANY money, it's just strategic accounting practices."


Or something like that....

Your ready for your recall to American aren't you?

 

[contrail67]

Ahhhhhhhhh!!!!!!!!

 

[Tantrum]

Wait...I think I know what's going on now. The pilot's equity stake in the new company is based on a 3.5% of the value of the new company...DAL and NWA basically just reduced the value of the overall company by about $10 Billion with these moves. So now the equity portion will be based on a $7 Billion company instead of the $17.7 Billion we were hearing before. At least that's my take on it...could be way off, but it does seem odd that only NWA and DAL took this unique writeoff at the exact same time!

 

[anewunion]

HUH? Market Cap is not an asset?

Not unless you are an individual investor who owns stock and lists it as a personal asset.