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Delta Reports Record December Load Factors!

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ACL65PILOT

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Dec 6, 2006
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ATLANTA, Jan. 7, 2009 – Delta Air Lines (NYSE: DAL) today reported December traffic results, including record load factors for its Delta and Northwest operating units. Load factors for Delta system (80.1 percent), Delta domestic (82.3 percent), and Northwest system (81.9 percent) were higher than any previous December on record.
Delta
Delta’s system traffic in December 2008 increased 0.7 percent versus December 2007 on a capacity decrease of 2.4 percent. Delta’s system load factor increased 2.4 points to 80.1 percent.
International traffic increased 9.2 percent year over year on a 13.7 percent increase in capacity, and load factor declined 3.2 points. Domestic traffic decreased 3.7 percent year over year on 10.4 percent lower capacity. Domestic load factor increased 5.7 points to 82.3 percent.
Northwest
Northwest’s system traffic in December 2008 decreased 3.6 percent on a capacity decrease of 4.5 percent. Northwest’s system load factor increased 0.7 points to 81.9 percent.
International traffic decreased 2.0 percent year over year on a 0.3 percent decrease in capacity, and load factor declined 1.4 points. Domestic traffic decreased 4.7 percent year over year on a 7.2 percent decrease in capacity, and load factor increased 2.2 points.
 
Load factors holding up. Hopefully they will decide the mass 757 parking is too much capacity reduction and this massive displacement is not needed.
 
Load factors holding up. Hopefully they will decide the mass 757 parking is too much capacity reduction and this massive displacement is not needed.

They already knew the past numbers. It's the future bookings or the lack there of that is the problem.
 
They already knew the past numbers. It's the future bookings or the lack there of that is the problem.


Exactly.
With the forcaseted drop for the summer months, taking 40 seats of each segment makes perfect sense. It is also why this merger works for the company, even if the pilots do not like it.

Taking these seats out but maintaining the frequency affords DAL a lot of wiggle room. For one it reduces the elasticity of of our pricing power. Prior to this merger we would have not been able to do a fleet swap like this. Having 9's, 320's and 88's with lower utilization rates allows us to move airplanes on to different routes quickly.
We will up their utilization rates, and not have to incur the acquisition costs of a new jet. With out this merger you would see our ticket prices fall, and as a result massive losses.
This inturn would result in a loss of frequency and eventually massive furloughs and a liquidity issue. It is not to say that we will not furlough, but it is to say that with out this merger we would be fighting to survive in this environoment.
Do not take the downgrade personally, it would have probably meant a job loss otherwise. In essence the same situation that DAL and NWA just got out of.
As other airlines fail or go CH 11 you will be happy with that five leg md-88 sked.
 
Exactly.
With the forcaseted drop for the summer months, taking 40 seats of each segment makes perfect sense. It is also why this merger works for the company, even if the pilots do not like it.

Heyas ACL,

With the smallest premerger frame at DAL in the 140+ seat range, this pull back in air travel would have been devastating for the bottom line at DAL.

With no small airframes to utilize, DAL would have been forced to either buy them (NOT likely given any number of reasons), or simply park airframes ane lose frequency. Pay cuts and another assault on scope would have been next.

DAL was massively exposed to exactly the kind of market that is now occuring.

With over 150 airframes in the 100-125 seat range plus another 30 in hot storage, NWA was a godsend.

No wonder everyone was so hot to trot on this thing. DAL management KNEW they were exposed, and had to fix it before the bottom fell out.

RA is good at timimg like that. He got the credit line the morning of 9/11 that saved NWA, and he pulled down the billion in credit line just weeks before the credit market collapsed.

We could do much worse.

Nu
 
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I agree, and that is why I stated that this merger save both companies. Even if people do not like what will happen in the next three years.
 
How many FNWA 757 pilots were displaced in this last APA?


Bye Bye--General Lee
 

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