Why The Big Drop in DAL Stock Today?

[acarpe3448]

I was just checking some of the airline stock prices today and saw that Delta was down like 15 to 20% as of 1:30 today. Any ideas what the big deal is today. Do you think this is related to Delta saying that they expect a larger loss than expected? Or is this just general war related jitters for investors? I feel bad that I got my parents in on this stock last year when it was in the process of making it's run up to $35+. I know that DALPA will be agreeing to concessions so I hope that this will help Delta get back to at least flat cash flow from operations. Man, not making anymoney right now, what a dream!

 

[tired_pilot]

wall street article today

WSJ artice today states DL's lose this quarter will be greater tehn expected...

 

[General Lee]

Delta announced that they might not have as many bookings during a war. Does that surprise anyone? They may not profit during a war. Man, that is amazing! The only good news to come out today is that Delta is now hedging almost 77% of their fuel at 78 cents a gallon-----and that was up from 63% a couple weeks ago.

Bye Bye--General Lee

 

[DIRT]

watch out General Lee the ivory tower may very well be tumbling.......

 

[acarpe3448]

$6.92 down $1.74 as of 3:20 this afternoon. I think investors are just super nervous. No one is in the mood to buy stocks right now, so a little bad news mixed in and you get...well, you no the story. Also, thought i would ask for anyones opinions...what do you think will happen with 500 or so pilots choosing early out on May 1st? That along with the 500 normal retirements this year as well as the over 60 guys having the 727s being parked. Do you think Delta is going to repeat history and end up being understaffed here shortly.

 

[Sphincter Boy]

Here was a contributing factor:

http://story.news.yahoo.com/news?tmpl=story&u=/nm/20030311/bs_nm/airlines_iraq_dc_2

All airlines were hit very hard today.

 

[General Lee]

Dirt,

Who would not expect stocks to fall in the event of a war? You're right, things look bad for ALL airlines---even Southwest said they might not be profitable this quarter. All we can hope for is a short war. Airlines like Southwest and Delta are hedged fairly well (Southwest at 100% and Delta at 78%) which is a lot better than most. I believe we can ride this out better than most. IF we were to go Chap 11, I beleive two or three others will already be in Chap 7. This is the bottom of a terrible cycle, and I think Delta will be there as we go back up. Can you say that won't be the case?

Bye Bye--General Lee

 

[trigeek]

The sector is extremely volitile right now. With Delta originally expecting positive cash flow and then announcing it will have a negative cash flow, it was inevitable. We had a slight positive cash flow for the 4th qtr. It was expected to be the same for this qtr as well but now that seems very unlikely.