Delta reports $6.4 BILLION loss for 1st qtr.

[DTW320]

Operating loss is the number that matters. DAL and NWA's combined operating loss was still $100Million less than UAL's. Not saying it doesn't suck, but is relatively better than others.

 

[BOX OFFICE]

$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.

In other words, Delta and Northwest are crying poor to facilitate public and regulatory sympathy and facilitate the merger. Report obscene losses on top of mediocre losses to make the merger seem really necessary when John Q Public watches the Evening News.

Did anyone really not see this coming? And do they think everyone is too stupid to see through it? Delta and Northwest are famous for cooking the books up to serve whatever purpose they have in mind. The bankruptcies (ironically on the same day!) were a prime example.

Don't believe the hype. The real losses were the smaller figures. Which are well in line with the other airlines.

 

[taiar]

Wake up in the morning ...HEADLINES and Breaking NEWS DELTA loss = $6.1 BILLION....


Everyone sells stocks.... pre trading Delta stock takes a hit.... just before the opening bell Delta and analysts clarify that its really only a $274 loss.... all of a sudden it don't seem that bad no more, and stock bounces back up and does not Tank... as it would have if they would have just announced from the get go a $274 loss...... $6.1 Billion vs $274 Mill.

UAL stock dropped almost $6 a share when they announced there Q1 results... ..... However DAL has only dropped about a $1.... the $6.1 Billion soften the blow.... smart financial strategy..

my 2 cents... for what ever its worth or not...

 

[Mr.B]

Wake up in the morning ...HEADLINES and Breaking NEWS DELTA loss = $6.1 BILLION....


Everyone sells stocks.... pre trading Delta stock takes a hit.... just before the opening bell Delta and analysts clarify that its really only a $274 loss.... all of a sudden it don't seem that bad no more, and stock bounces back up and does not Tank... as it would have if they would have just announced from the get go a $274 loss...... $6.1 Billion vs $274 Mill.

UAL stock dropped almost $6 a share when they announced there Q1 results... ..... However DAL has only dropped about a $1.... the $6.1 Billion soften the blow.... smart financial strategy..

my 2 cents... for what ever its worth or not...

Subtract the 250M dividend payout UAL robber-barons basically gave themselves, and the UAL/DL loss is basically the same.

 

[General Lee]

Yeah really. After the General gets done playing broke back mountain with the CEO he will chime in with some good BS.

What a complete tool. Hillarious. Anyway, the right down was an accounting tool that both DL and NWA used. Funny how that happens, eh? The actual loss was $274 million, which isn't great, but not as bad as UAL's, and hopefully the busy Summer season will help. Other airlines will start falling by the wayside anyway. A DL/NWA combo will have $7 billion in cash, which will help weather the storm.


Bye Bye--General Lee

 

[Noserider76]

In other words, Delta and Northwest are crying poor to facilitate public and regulatory sympathy and facilitate the merger. Report obscene losses on top of mediocre losses to make the merger seem really necessary when John Q Public watches the Evening News.

Did anyone really not see this coming? And do they think everyone is too stupid to see through it? Delta and Northwest are famous for cooking the books up to serve whatever purpose they have in mind. The bankruptcies (ironically on the same day!) were a prime example.

Don't believe the hype. The real losses were the smaller figures. Which are well in line with the other airlines.

I don't think they need to cook the books to get the merger approved. US carriers are getting killed by the ultra-weak dollar (= record fuel prices in $). Large international carriers are getting stronger as their currency appreciates via the dollar. Consolidation will probably have to happen if we want US airlines to compete in the international market. These large goodwill write downs are just pre-merger house cleaning.

 

[Tanker1497]

Hey SFR, interesting post....

"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."

So in your opinion, who exactly does have any business being in this business? It looks as if all pax carriers, save Southwest, will be in the red for this quarter. Just curious, what airline do you work for, because I'm sure they have "business being in this business."?

 

[jehtplane]

What a complete tool. Hillarious. Anyway, the right down was an accounting tool that both DL and NWA used. Funny how that happens, eh? The actual loss was $274 million, which isn't great, but not as bad as UAL's, and hopefully the busy Summer season will help. Other airlines will start falling by the wayside anyway. A DL/NWA combo will have $7 billion in cash, which will help weather the storm.


Bye Bye--General Lee

I rest my case, I'd swear you sit in front of a picture of a Delta Widget and diddle yourself!!!

 

[SWA/FO]

Other airlines will start falling by the wayside anyway. A DL/NWA combo will have $7 billion in cash, which will help weather the storm.

Yeah, that will buy DL/NWA a qtr and a half.

 

[Bake]

General, I'm pretty sure houses in LBB are about 70 dollars a square foot. Just a thought.