Delta reports $6.4 BILLION loss for 1st qtr.

[Fly4hire]

(Disclaimer for the humor impaired - this is satire, not a real press release)

However an un-named source close to negotiations was quoted as saying "we have another $3.1 billion cash on hand in the form of NWA asset sales, and most of the company officers are still planning on completing their 5000 sq. ft. slope side homes in Aspen"

"Richard Anderson, Doug Steenland, and a host of top oil industry executives have rented the island of St. Martin for the months of July and August to host their annual Fleecing of America banquet, where President George Bush was scheduled to make a guest appearance....."

The un-named source said they were planning on doing a formation overfly of Wall Street in their fleet of private Gulfstreams, and in tribute of the DAL MEC Chairman, Lee Moak, who made the deal possible, would perform the special "missing man" formation.

Asked why they would not use their own company airplanes, Richard Anderson choked on his Dom Perignon and had to be rushed to an exclusive Beverly Hills spa to recover.

 

[spinproof]

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

Really?
market capitalization - an estimation of the value of a business that is obtained by multiplying the number of shares outstanding by the current price of a share.

OK So DAL has been de-valued by $6.1 Billion. No big deal. uke:

 

[BILL LUMBERG]

Hey FI Monkeys.....

The billions lost is market value as a writeoff when they do the merger stock trade.....we posted a billion dollar loss in BK when they did the re-issuance of stock. Nothing shocking here....market value can be written off like depreciation.

The real number is 274 million dollar operating loss (gasp).....better than most other majors. But that's like getting first in the 100 yd dash at the SPecial Olympics, you may be the champ, but you are still a retard.

Everybody chime in until AA717 and his airline posts, then we'll all have something to laugh at!!!

 

[Bavarian Chef]

Hey FI Monkeys.....

The billions lost is market value as a writeoff when they do the merger stock trade.....we posted a billion dollar loss in BK when they did the re-issuance of stock. Nothing shocking here....market value can be written off like depreciation.

The real number is 274 million dollar operating loss (gasp).....better than most other majors. But that's like getting first in the 100 yd dash at the SPecial Olympics, you may be the champ, but you are still a retard.

Everybody chime in until AA717 and his airline posts, then we'll all have something to laugh at!!!

Hello? We all know this, we are just collectively creating negative energy. If we don't, the General will never get to 10,000,000 posts.

 

[Occam's Razor]

(Disclaimer for the humor impaired - this is satire, not a real press release)

However an un-named source close to negotiations was quoted as saying "we have another $3.1 billion cash on hand in the form of NWA asset sales, and most of the company officers are still planning on completing their 5000 sq. ft. slope side homes in Aspen"

"Richard Anderson, Doug Steenland, and a host of top oil industry executives have rented the island of St. Martin for the months of July and August to host their annual Fleecing of America banquet, where President George Bush was scheduled to make a guest appearance....."

The un-named source said they were planning on doing a formation overfly of Wall Street in their fleet of private Gulfstreams, and in tribute of the DAL MEC Chairman, Lee Moak, who made the deal possible, would perform the special "missing man" formation.

Asked why they would not use their own company airplanes, Richard Anderson choked on his Dom Perignon and had to be rushed to an exclusive Beverly Hills spa to recover.

'Kay...that's funny!

Taking a no-cost impairment now is a strategic move to keep it from having to be accounted for during any future stock swap.

it could trigger a couple of loan covenants, and force both airlines to pay higher interest rates (or make "penalty" payments), but those could be "adjusted" if the lender agrees to take stock during the merger transaction.

The key number is the operating loss, since that's the one that will be rolled-up and used to whap us on the head.

 

[WSurf]

Hey Tanker Clown, roll over and wake up the General -- we need his take on this.

While your waiting, I found a video of both of them!


http://www.youtube.com/watch?v=ipZDG6__Zfc&feature=related

 

[clickclickboom]

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....

And dont forget to add::


PS: Hope you have fun on your laredo or jfk overnights bitches because i fly my south america turns

GL

 

[d.fitz]

Excluding special items, primarily a $6.1 billion non-cash charge relating to the decline in Delta's market value due to sustained record fuel prices, the airline lost $274 million, or 69 cents a share, in the first quarter.
Analysts expected a loss of 49 cents a share, excluding one-time items.

So, let me get this straight. They want the merger to seem more 'palatable' - so they CREATE a special $6.1 BILLION dollar charge? Why didn't they make it $20 Billion???

They lost $274 million, but that sure isn't the headline!!

 

[tanker2]

Posted by 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!"

I think Tantrum solved the puzzle. 3.5% of $10B is $350 million in equity that the company no longer passes to the employees. And goodwill is not market cap (although a worse balance sheet will not help the stock), it is basically value placed on the brand name. And with all airlines getting hit hard right now, mgt couldn't have a better time to do a writeoff like this - airline stocks are getting hit anyway so the pain won't be as great for them as it would have been six months ago.

 

[WSurf]

And dont forget to add::


PS: Hope you have fun on your laredo or jfk overnights bitches because i fly my south america turns

GL

Jeez, and to think my buddy was gonna quit JetBlue (He's in the 50% range in Seniority) for a job at Delta. He called 2 days before class to say thanks, but no thanks.

Time to hunker down for the summer ride, its gonna be a wild one!!!!