Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

Incompentence Air

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web

MarylandONE

Active member
Joined
Jul 31, 2005
Posts
43
FLYi quarterly loss widens; rev down 24%
Tuesday August 9, 2:10 pm ET
By Carla Mozee

SAN FRANCISCO (MarketWatch) -- FLYi Inc. on Tuesday reported a second-quarter net loss of $98.5 million, or $2.01 a share, compared with a loss of $27.1 million, or 60 cents a share, a year ago. Its pro forma loss was $1.13 a share. Revenue was $117.5 million, down 24% from $154.4 million a year ago. Traffic for the period rose 37.5% to 898.6 million revenue passenger miles. The air carrier's load factor fell 2.3 percentage points to 72.6%. Capacity rose 42% to 1.24 billion available seat miles.
 
Bankruptcy Fears Sink Delta Stock

Bankruptcy Fears Sink Delta Stock


Provided By: The Associated Press
Last Modified: 8/9/2005 2:24:09 PM

By HARRY R. WEBER
Associated Press

ATLANTA (AP) -- Delta Air Lines Inc.'s battered stock fell anew Tuesday after a Wall Street analyst advised clients to sell their shares on fears the nation's third-largest carrier will file for bankruptcy within the next two months.

In morning trading on the New York Stock Exchange, Delta's shares fell 8 cents, or 3.6 percent, to $2.15. The shares had fallen as much as 15 percent in pre-market activity.

Prior to the dip, Delta's stock was already at a 43-year low.

The dip came on the heels of a research note by Merrill Lynch analyst Michael Linenberg, who lowered the Atlanta-based airline's rating from neutral to sell.

"We think the recent surge in fuel prices greatly increases the likelihood of a bankruptcy filing within the next two months," Linenberg said.

He said that while Delta, which has lost nearly $10 billion since January 2001, has been in talks with creditors about additional funding, he believes the surge in oil prices could keep lenders at bay for now.

He estimated that Delta's fuel bill this year could grow by more than $1 billion, wiping out the $1 billion of cost concessions provided by the airline's pilots last year.

"We think the probability of a Delta bankruptcy filing has grown, and we think investors should be mindful of Oct. 17, when more restrictive bankruptcy legislation becomes effective," Linenberg said. "That could be a key factor in a Delta deciding whether to file for Chapter 11 bankruptcy."

On Monday, Delta named a new treasurer after its previous treasurer left the company.

Delta's chief executive has said the company's current transformation plan, which includes cutting annual costs by $5 billion by the end of next year, is not enough to save the struggling carrier.

CEO Gerald Grinstein says Delta is still working hard to avoid a Chapter 11 filing, but he has acknowledged there are risks affecting the airline's ability to do that.

Delta, citing high fuel prices, reported late last month that it lost $388 million in the second quarter.
 
If you quit - you're a quitter. Don't you think it's better to go down kicking and screaming? Besides...I think most of the INDY folks would rather it be like this than to have stayed with UAL.
 
AZ Typed said:
If you quit - you're a quitter. Don't you think it's better to go down kicking and screaming? Besides...I think most of the INDY folks would rather it be like this than to have stayed with UAL.

Are you kidding me.. Ask the pilots that dont have a job and can't put food on the table for their kids if they would rather have a job or no job at all.
 
Bandit60 said:
Are you kidding me.. Ask the pilots that dont have a job and can't put food on the table for their kids if they would rather have a job or no job at all.

They (indy) kicked me out (furloughed). I still put food on my table. My kids eat fine...because I planned for it! Pilots can flight plan...but that seems to be about it. But - you have a great point (no sarcasm).

AZT
 
I'm furloughed and starting over. And I would do it all over again. The people love Indy Air and at least we opened the eyes of the public. We knew the risk and failed, but at least we tried and it felt good not to be under the broken wings of the United fu#ked up family.
 
What makes everyone think that if Indy declares Chap 11 they're disappear from the map?

Airlines stumble along in chapter 11 for quite a while. All they need it to find some clown with more money then sense to provide exit financing and "poof". Indy will have another chance or two to make a go of it (like Midway)
 
To the original thread poster... Indy made a lot of mistakes, but if you want to call it by that name, sounds like you have some big axe to grind to hate them? As for Indy dying.. maybe, but half the losses are a write down, so 'real' losses were around half of the previous quarter. It wouldn't surprise me to see them dump all the RJs (maybe via Ch.11) before the year is out, in which case their survival is almost assured. Recall may be impossible in any meaningful time frame but if they survive, they may grow from the ashes. If you are SWA, you should (?) know that ultimate success doesn't come to those who don't take huge risks, like Kelleher did. From what I've heard, the airbuses are making money, and all the money is draining from the RJ side of the operation. Do I count on this- no. Do I think it's extremely unlikely? No.
 
Last edited:

Latest resources

Back
Top