Jayspilot From United States of America, joined May 2001, 298 posts, RR: 0 Posted (9 years 8 months 1 week 6 days 13 hours ago) and read 2419 times:
With Delta's current future looking "not so hot" I dug this up from 1998 showing how Delta did just 7 years ago. It is truely amazing how times have changed!
Delta net income soars to a record $1 billion
by Mark Gallagher
DELTA AIRLINES has reported a record net income of $1 billion for the fiscal year 1998 and quarterly net income of $362 million.
This is a rise of 13% on the net income, whilst its operating margin rose by 12% on the previous year. As well as this, the airline had a record operating cash flow of $3 billion, up 47% on last year. In a statement, the company said their record fiscal year demonstrates their underlying financial strength and their continued ability to deliver strong margins and operating cashflow.
"Preliminary data indicates Delta's June on-time performance will place it within the top tier of the major network carriers," the statement read. The annual report showed other good news for Delta, as in the first five months of 1998, Delta had significantly fewer customer complaints than its two largest competitors, despite carrying 30% more passengers. Their mishandled baggage rate for those months was 12% better than the industry average. "Looking ahead, we will continue to invest in our customers," Delta's Leo Mullin said. "During fiscal 1999, Delta will complete our aircraft interior enhancements, begin to implement significantly improved gate and boarding processes, upgrade facilitates at seventy six additional airports and renovate eight additional Crown rooms." Delta employees will now share in a record profit-sharing payout exceeding $180 million for fiscal 1998, a 24% increase on 1997's record payout. Delta and its worldwide partners operate over 5,000 flights each day to 62 countries from 12 US gateway cities. Delta carries more passengers worldwide than any other airline network, and is the leading US airline operating the Atlantic route
Jayspilot From United States of America, joined May 2001, 298 posts, RR: 0
Reply 5, posted (9 years 8 months 1 week 6 days 1 hour ago) and read 2089 times:
As said above, yes everyone was making money, but Delta was making the most. No one else was making a billion a yr. Its just amazing to think about how in their best yrs ever Delta and the rest were making 1 billion and how in their worst they lose a billion a quarter.
DeltaGuy From , joined Dec 1969, posts, RR:
Reply 6, posted (9 years 8 months 1 week 6 days 1 hour ago) and read 2073 times:
And it was during this time of massive money making that the pilots had the "United Plus" campaign going, to get the best contract of any airline pilots in the US. And rightfully so, the company had money coming out their ears. It worked, was a good deal while it lasted I suppose.
ATLFlyer323 From United States of America, joined Jan 2005, 629 posts, RR: 0
Reply 7, posted (9 years 8 months 1 week 6 days 1 hour ago) and read 2047 times:
Everything in life has a cycle. Companies will always have their golden days and always there not so golden days. The strength of a company depends on the ability of the company to take the not so golden days and make them golden again. The same thing can go with economies and even countries. Some will make it through the cycle while others will not. I bet you sooner or later you will see SouthWest in financial trouble, I'm not saying this is going to be any time soon but non the less, if you look at history everything that flourishes will also have it's recessions.
Ptcflyer From United States of America, joined Apr 2001, 103 posts, RR: 0
Reply 8, posted (9 years 8 months 1 week 6 days ago) and read 1996 times:
It is a shame that Delta (Management, Employees and Stakeholders) did not recognize the "boom times" and save more money for the "hard times". The leadership bought up their contract carriers for billions... bought back stock...built a new, fancy underutilized terminal in Boston... and funded a huge capital project to launch a new branded carrier ... "SONG"... and delayed confronting the pilots unions for wages that have since been proven unsustainable.
Meanwhile, the airline failed to innovate in customer service, cabin features and passenger comfort for the bulk of their Delta mainline service. At a time of economic uncertainty, the marketing team at Delta fiddled with their frequent flyer program driving away a significant number of loyal higher-revenue flyers. They did do a good job of implementing new, labor saving technology for booking, ticketing, and boarding. Those investments, however, have been proven to be a "me-too" for the industry.
High oil prices, potential terrorist attacks, SARS-like viruses, economic slow-downs... should always be anticipated ... and represent "rainy days" that Delta could have saved for.
Perhaps the circumstances that the airlines find themselves in is a perfect storm that is unsurvivable... but clearly, between 1998 and 2005... Delta and its stakeholders made many bad decisions without the imagination of what kind of "rainy days" they should have been preparing for.
Hence, a major restructuring is in the works... at the cost to the shareholders, debt holders, employees, and surrounding communities that support Delta.