Delta reports $6.4 BILLION loss for 1st qtr.

[MALSR]

This just goes to show that bankruptcies don't improve anything. All, and I mean all, of the underlying problems both of these airlines had are still there. Not only that but the two companies are probably going to combine into one giant problem. All the bankruptcy did was reduce payroll while ignoring the true problem areas and improvement potential.

 

[WSurf]

This just goes to show that bankruptcies don't improve anything. All, and I mean all, of the underlying problems both of these airlines had are still there. Not only that but the two companies are probably going to combine into one giant problem. All the bankruptcy did was reduce payroll while ignoring the true problem areas and improvement potential.

I think Bankruptcies can help, we did see a recovery by the airlines. Then then came another wammy! Fuel Prices.

This Sucks

 

[SFR]

How can 2 obviously terrible companies like DAL and NWA possibly merge? It is like the blind leading the blind.

They have no business being in this business.

 

[BILL LUMBERG]

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.

Now that's funny!!!

 

[SWA/FO]

Nice loss General Lee, maybe you guys should start flying to LBB and load up on some of that $$$$ that SWA keeps finding.

 

[BILL LUMBERG]

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.

That's a great point..... but isn't the equity share based on the price at the close of the corporate closing?? So the writeoff is for depreciation of assets (i.e. stock) which allows for a favorable tax rate.....just guessing on that one

 

[Jmoney]

General?

General Lee, Paging General Lee!!!

People are bashing you and your airline! Maybe you should step forward to valiantly defend your "inspired managment."

Maybe you, the all-seeing all-knowing poop of the world can enlighten us lesser mortals as to how this can happen to you and your "inspired leaders."

How many billion? No, seriously, General! Billion? Really? "Goodwill write-offs." Yep, if by "goodwill" they mean sucking a shotgun barrel like Kurt Cobain, I guess I could see that point.

Come on, Gen! we are awaiting your inspired response with baited breath!

-Come try and "spin" this one.
-Or just "sit and spin"

-Matters not to me, toobag!

-P.S.- See all my previous posts regarding yourself and "bad ju-ju." Maybe you will get the point

 

[ultrarunner]

BILLION? One time charge? Huh?


here's the spin: excluding special one-time charges they only lost 274 million

NWA release is next ...

Ok, lets give DAL the benefit of no more "one time charges' related to reduced market cap (riiiight).

With that said, has anyone done the math on how many more quarters DAL can tolerate quarter BILLION dollar losses without going out of business or declaring BK?

I can't imagine the General doesn't have those numbers at the ready.

 

[Noserider76]

DL's guidance says + 3-5% operating margin in Q-2. Operating profit should be in that range unless fuel is significantly higher than current price. 49%+ fuel hedged at 2.79/gal.

For the record DL guidance was good for Q-1. Q-1 2008 guidance was for an operating margin of minus 2-4%. Came in at minus 3.3% for an operating loss of 161 mil plus special items (274 mil).

 

[Max Powers]

Well DAL and NWA stock is up on that news so it can't be that bad