Delta swings a net profit of $55 million for FEB

[Howard Hughes]

Ed Bastian has already stated that Delta will lose between
$25 and $50 million for the first quarter. I think Delta is being pretty straight forward disclosing what is going on (not trying to "trick" any investors into anything:


Delta sees April 30 as Ch. 11 departure date
By RUSSELL GRANTHAM
The Atlanta Journal-Constitution

Published on: 03/27/07

With its bankruptcy case winding down, Delta Air Lines spent the day Tuesday trying to convince industry analysts that the "new Delta" is ready to soar on Wall Street after it emerges from Chapter 11 in about a month.

Executives said they are confident Delta's creditors will back its reorganization plan, adding they expect it to emerge from Chapter 11 on April 30 as a financially strong carrier with plans to continue expanding overseas.

"We're going to have the cost structure, we're going to have the balance sheet, we're going to have the revenue acceleration," Chief Financial Officer Ed Bastian said, adding that Delta's "untapped potential" is both the carrier's biggest opportunity and biggest problem.

"We realize we have to prove it to you," said Bastian at the conference in Atlanta, which was Webcast. "We're not out there saying buy the story. We're saying buy the potential."

To realize that potential, Delta plans to continue strategies it projects will yield $816 million in pre-tax profit this year, including its wholesale expansion to overseas markets such as Moscow and Lagos, Nigeria. In the airlines' crosshairs at the moment: new destinations in Latin America and Asia.

However, Bastian said Delta also expects a first-quarter loss of between $25 million and $50 million — down markedly from a $350 million loss in the same period last year.

 

[Matt Foley]

I never intended to infer that they were trying to “trick” investors. However, most investors (term used loosely) either don’t take the time or have the knowledge to sift through the many SEC filings and other sources of info which usually prove to be inaccurate to begin with, just look at all the amendments to those filings (for all companies, not just Delta, and not just the airlines).
Will Delta make a profit this year of next? No one knows for sure. I can say however that it is a bad investment because their business model is wrong. It is after all an airline.

 

[BLUE BAYOU]

CHICAGO, March 29 (Reuters) - Delta Air Lines (DALRQ.PK: Quote, Profile , Research), which plans to exit bankruptcy on April 30, said on Thursday it swung to a profit in February on reorganization-related gains but posted a loss on an operating basis.
The No. 3 U.S. carrier reported a net profit of $55 million in February, compared with a loss of $209 million a year earlier. Excluding reorganization items, Delta lost $43 million in February.
The reorganization-related gains resulted from the company updating previous assumptions about its restructuring, Delta spokeswoman Betsy Talton said. She declined to go into further details.

Ok, unless I read it wrong-- Delta lost $43 million in February. They only showed a $55 million net profit due to reorganization items. Like, I don't think they pay for their airplanes, heheh...

 

[johnsonrod]

And how many people completely wrote off Delta a year ago???? Lowecur should go back to selling insurance.

 

[General Lee]

CHICAGO, March 29 (Reuters) - Delta Air Lines (DALRQ.PK: Quote, Profile , Research), which plans to exit bankruptcy on April 30, said on Thursday it swung to a profit in February on reorganization-related gains but posted a loss on an operating basis.
The No. 3 U.S. carrier reported a net profit of $55 million in February, compared with a loss of $209 million a year earlier. Excluding reorganization items, Delta lost $43 million in February.
The reorganization-related gains resulted from the company updating previous assumptions about its restructuring, Delta spokeswoman Betsy Talton said. She declined to go into further details.

Ok, unless I read it wrong-- Delta lost $43 million in February. They only showed a $55 million net profit due to reorganization items. Like, I don't think they pay for their airplanes, heheh...

No, you have it backwards. They had a $55 mullion net profit, but it cost them $98 million in reorganization items, so they ended up with a $43 million loss. If it weren't for the lawyer fees etc, they would have had a profit. They are wiping the books clean and will start fresh with a lot less debt (around $7.5 billion, down from over $17 billion) in early May. United, on the otherhand, left BK with a lot of debt they did not get rid of, over $15 billion I have heard.


Bye Bye--General Lee

 

[Skyboy722]

No, you have it backwards. They had a $55 mullion net profit, but it cost them $98 million in reorganization items, so they ended up with a $43 million loss. If it weren't for the lawyer fees etc, they would have had a profit. They are wiping the books clean and will start fresh with a lot less debt (around $7.5 billion, down from over $17 billion) in early May. United, on the otherhand, left BK with a lot of debt they did not get rid of, over $15 billion I have heard.


Bye Bye--General Lee

General- EXCLUDING reorganization items, DL lost $43M. So the reorganization items HELPED, right?