Delta's Stocks Plummett

[Lrjtcaptain]

I just heard on the news the price for delta stock went down 13% already this morning after Delta officials say they are going to loose a bank load of money this year. What gives, 5billion last year, and how much this year?? Those planes are usually full.....What am I missing??

--A devoted delta flyer, minus my thread on xmas eve

 

[flatspin7]

The problem is with Jet fuel costing $1.45+ a gallon and fares that are basically giving the seats away below cost--- that combined with an overly inflated management structure --- A plane might have to be 110% full to make money--- hardly a great business-- Same problem with USair, UAL, AMR, CAL you name it.

 

[jetflyer]

Don't forget to mention that Delta is paying INTEREST on $21,000,000,000 in debt.

This is an expense the low cost carriers don't deal with and puts Delta at a TREMENDOUS DISADVANTAGE.

Most of Delta's debt is at about 8% interest:

8% of 21 Billion is: 1.68 Billion a YEAR in just INTEREST EXPENSES!!!!

THAT DOESN'T INCLUDE PAYING ANY OF THE DEBT DOWN, JUST THE INTEREST!!

How can an airline pay 1.68 billion just in INTEREST a year and expect to compete with Jetblue, Airtran, and Southwest??

Plus, Delta has already used most of its assets as collateral to GE and others. This leaves Delta in very bad shape and nothing to give for FUTURE FINANCING. Delta may have a VERY hard time getting someone to loan them money in the future. Let's hope not

Everyone associated with Delta keep praying. It's going to be a rough couple years ahead.

Jet

 

[C601]

^^ well if the above is correct ( i'm sure), and fuel prices in the increase with no relief in site.... Where's all this going to end

 

[atpcliff]

Hi!

I just read yesterday that Delta, UAL, USAir and Indy Air are in danger of Chapter 7 by the end of this year if oil prices stay where they are. Unfortunately, for the above airlines, oil prices won't stay where they are. They will be going up.

Cliff
YIP

 

[Big Duke Six]

Yeah, and sure enough, United starts a fare war yesterday, cutting many fares out of DEN by 50%. Brilliant.


Something has to give, I guess they are just pressing to test to see who it will be. It's too bad "going bankrupt" doesn't mean "closing the doors" like it used to. Now it means "Official permission to screw the guys doing better than you".

Yes, I'm tired and they p!ss me off.

 

[Vector4fun]

[shakes head]

Do ya suppose C.E. Woolman and Charlie Dolson would be pretty disgusted with Delta's managemet today???

 

[Lrjtcaptain]

Well, its too bad, I hate to see any airline close its doors. I can't believe USair is still flying after all the problems they have had to deal with with in the past few years. Lets say just for an example that Delta ends up closing the doors. Who is going to take over Atlanta and SLC and will that mean the demise for the regionals such as Skywest, ASA, and Comair? I don't know enough about the management at the airlines, I just know who runs where and with who.

 

[Purpledog]

There is no way the feds would ever let UAL or Delta go Ch.7. Too much impact on the economy. Look how hard of a time the DOD has shutting down Mil bases because of congressmen watching their own back. There are way too many congressmen with constituents that would be negatively effected by a yard sale.
My 2 cents.

 

[skykid]

Big Duke,


I'm guessing you didn't read the details of the big fare sale. Fare war, give me a break.

 

[satpak77]

There is no way the feds would ever let UAL or Delta go Ch.7.

With ATSB, the Feds did their part to "not letting" them go Ch.7. With federal bankruptcy laws, the feds also did their fair share.

If in the course of the natural business climate, these airlines subsequently go Ch.7, then thats the way the ball bounces. Its time for the feds to get OUT of airline affairs and STOP life support for these companies