How are you going to spin this on us GL?

[N1atEcon]

Just wait for the refinery, right.
Delta Air Lines, which Tuesday morning announced that busted fuel hedges had resulted in a $155 million second-quarter loss, became the first in what could be a series of major carriers to take pain from an unexpected plunge in crude prices.

WTI crude futures have fallen more than 27 percent since their February high, taking the market by surprise and rendering airline hedges - originally intended to ease the economic pain of higher fuel prices - largely ineffective.
At Delta (DAL), the gyrations in crude not only created a loss related to fuel hedges that settled during the June quarter, which ends Saturday, but also contributed to what the company estimates will be an $800 million charge for its open hedging positions, which run through 2013.

 

[RT8VA]

I dont know very many professions where people from other companies get so excited about troubles at competitors. The funny thing is all of us have friends at all of these airlines and yet still the cheers and hopes that some one else will fail are pitiful.

 

[SXMp2c]

where is my LIKE button?

 

[Ky.BrownBourbn]

I can hear it now ...

"Ha! You morons, don't you understand, buying a refinery is like printing money!"

KBB

 

[redflyer65]

I think there will be more than one airline with hedging losses, but you have to hedge for the possiblity of 130 dollar oil as well.

Those without hedges have been hit pretty hard. The pendulum swings.

 

[K-Mart]

Well there is a difference in a fuel hedge loss and an operational loss. Different pots of money but a fuel hedge loss can be used by Delta management as a HUGE tax writeoff so they will be ok. Kinda like when I sold my 750K Hogg county snob house last year and lost a 150K on it but I used it as a tax writeoff to buy another 900K snob house. Its all in the writeoff. It also helps to have a wife that makes 400K a year too but I digress. Have a fantastic day! You really are terrific!

How did I do??

 

[ultrarunner]

What's to spin? It is what it is...

 

[N1atEcon]

I dont know very many professions where people from other companies get so excited about troubles at competitors. The funny thing is all of us have friends at all of these airlines and yet still the cheers and hopes that some one else will fail are pitiful.

Obviously you do not understand the fun natured teasing that goes on between most forum memebers and GL/ General LEE.

 

[General Lee]

Just wait for the refinery, right.
Delta Air Lines, which Tuesday morning announced that busted fuel hedges had resulted in a $155 million second-quarter loss, became the first in what could be a series of major carriers to take pain from an unexpected plunge in crude prices.

WTI crude futures have fallen more than 27 percent since their February high, taking the market by surprise and rendering airline hedges - originally intended to ease the economic pain of higher fuel prices - largely ineffective.
At Delta (DAL), the gyrations in crude not only created a loss related to fuel hedges that settled during the June quarter, which ends Saturday, but also contributed to what the company estimates will be an $800 million charge for its open hedging positions, which run through 2013.

OK, what? Spin what? Looks like the drop in oil hurt anyone who hedged. I guess DL hedged a certain amount at a higher dollar amount, and got burned. If you want some spin, the good thing would be I don't think Delta hedged as MUCH as previous years, probably learning from a couple of past years doing that. So, I guess they could have lost more money. Hedging is a gamble, and most analysts thought this Summer could go to $5 a gallon for car gas, Isreal fighting Iran, etc. A lot of things could have made it worse, but that didn't materialize I guess.

I know USAir did not hedge at all, so they probably made out well. I think the third quarter numbers (operational numbers) could be a lot better, but we'll have to see. Thanks for caring so much about Delta.


Bye Bye---General Lee

 

[redflyer65]

Was Song hedged as well? Hopefully they didn't lose money in this tough quarter.