YUL332LX From Canada, joined Feb 2004, 820 posts, RR: 1 Posted (10 years 10 months 2 weeks 3 days 21 hours ago) and read 3381 times:
Delta Air Lines will take a $1.65bn non-cash charge in the second quarter due to uncertainty about when it will generate sufficient taxable income to take advantage of its $1.53bn of deferred income tax assets...
...It warned on Tuesday that its "actual and projected financial performance for 2004 has been significantly impacted by higher-than- expected fuel costs and lower-than-anticipated domestic yields"...
...Mr Higgins predicted that the charge could send a further signal to Delta's pilots of the airline's precarious financial position.
Dl021 From United States of America, joined May 2004, 11447 posts, RR: 74
Reply 4, posted (10 years 10 months 2 weeks 3 days 14 hours ago) and read 3074 times:
I don't really know what more the airlines mgt could do to signal the pilots...maybe a smoke grenade, strobe, flare gun, vs-17 panel, and a very large bonfire on the lawn at the headquarters in ATL. These guys know the airline is in a very bad situation and for some reason believe that they won't have to sacrifice the way everyone else there has.
SESGDL From United States of America, joined Jan 2001, 3518 posts, RR: 9
Reply 5, posted (10 years 10 months 2 weeks 3 days 13 hours ago) and read 3018 times:
I'm truly hoping that DL can figure this all out, they are my favorite airline by far, and it makes me look back to 1997 and 1998 when profits were over $1.5 billion. I really hope they stick around, I can't imagine the US airline industry without Delta.
Milesrich From United States of America, joined Jul 2003, 2045 posts, RR: 6
Reply 6, posted (10 years 10 months 2 weeks 3 days 12 hours ago) and read 2964 times:
This $1.65 Billion Charge is just an accounting entry. The CPA's have said, look guys, it is not likely you will make money for a while so having this loss carry forward on your books overstates your financial position. I believe, if memory serves me correctly, that tax loss carryforwards can be brought forward only five years, which means that the loss for 2000, if not used next year, will be gone. While this is not a cash loss situation, it will make the balance sheet insolvent. In otherwords, owner's equity will be a negative figure, (positive on the balance sheet because it is a right hand side entry). This may give Delta the push into Chapter 11, so that they can tell their 7,000 prima donnas, who can't probably go earn $50,000.00 annually doing anything else, where to get off so to speak. It is just a shame that these Radical Selfish Republicans, who are only pro their own union, are going to be able to put so many others out of work. May they rot in . . . .