What could low oil prices do for Delta in 09?

[JAM-BRO]

Delta Air Lines could see $5 bln benefit in '09 with $50 oil

By Christopher Hinton
Last update: 8:51 a.m. EST Dec. 2, 2008

Delta Airlines could see a $5 billion benefit in 2009 if oil remains at around $50 a barrel, said Ed Bastian, the company's president. In a Tuesday meeting with analysts in New York, Bastian said the rapid decline in fuel prices have more than offset a decline in passenger numbers and the slower revenue growth that followed. With oil prices most recently around $50 a barrel, passenger revenue would have to decline more than 20% to lose the cost benefit of cheaper fuel, and not even the terrorist attacks on Sept. 11, 2001, were able to do that, he said. For 2008, post-merger Delta will have paid $100 a barrel equivalent for jet fuel. Shares of Delta was up 3.5% in premarket trading to $8.24.



If that is the case, there better not be any furloughs, and our profit sharing checks should be "YOU---GE"......(huge said by Donald Trump) Fingers crossed!


Bye Bye--General Lee

With the excess revenue, DAL should take the pilots pension plan back from the PBGC... That would be something to keep your fingers crossed for!!

 

[PCL_128]

That is a fact, and we supposedly have plans to do just that. That really isn't good news for you guys.
Look for more mainline planes on current RJ routes that compete with you directly.

Bye Bye--General Lee

I'm not too concerned.