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Delta Reports August Numbers--$11M Loss  
User currently offlineZone1 From United States of America, joined Jan 2005, 1035 posts, RR: 7
Posted (7 years 10 months 5 days 4 hours ago) and read 4937 times:

A slight disappointment after last month's net profit, but DL still made an operating profit of $60M for the month of August. They had revenue of $1.60B and operating expenses of $1.54B. Of those operating expenses, $431M went to jet fuel. Unrestricted cash was at $3B.

http://biz.yahoo.com/ap/060929/delta_bankruptcy.html?.v=4

Keep up the good work, DL!


/// U N I T E D
28 replies: All unread, showing first 25:
 
User currently offlineRoseFlyer From United States of America, joined Feb 2004, 9508 posts, RR: 52
Reply 1, posted (7 years 10 months 5 days 3 hours ago) and read 4867 times:

It's good to see that their finances are improving. It will be interesting to see how they deal with the slow fall and winter travel season since DL has many international routes that will be seasonally affected.


If you have never designed an airplane part before, let the real designers do the work!
User currently offlineEvan767 From United States of America, joined Aug 2005, 2957 posts, RR: 2
Reply 2, posted (7 years 10 months 5 days 3 hours ago) and read 4831 times:

Let's see how October goes. It looks like gas prices have gone down one whole dollar here in Richmond.


The proper term is "on final" not "on finals" bud...
User currently offlineHVNandrew From United States of America, joined Jan 2006, 428 posts, RR: 0
Reply 3, posted (7 years 10 months 5 days 3 hours ago) and read 4831 times:

Interresting how things change... a few months ago when DL reported an operating profit with a net loss, it was major glee. Now, simply some subdued satisfaction.

Anyway, great job DL.  Smile


User currently offlineZone1 From United States of America, joined Jan 2005, 1035 posts, RR: 7
Reply 4, posted (7 years 10 months 5 days 3 hours ago) and read 4756 times:

Quoting RoseFlyer (Reply 1):
It will be interesting to see how they deal with the slow fall and winter travel season since DL has many international routes that will be seasonally affected.

You're right, RoseFlyer. Most of the new international routes did fairly well this summer, but hopefully they won't bleed red ink for the winter travel season. If they can hold their own even before the ETOPS 757s come online, I think DL will be in a very strong position.



/// U N I T E D
User currently offlineN174UA From United States of America, joined Jun 2006, 994 posts, RR: 0
Reply 5, posted (7 years 10 months 5 days 2 hours ago) and read 4705 times:

Quoting Zone1 (Reply 4):
Most of the new international routes did fairly well this summer

How many of those routes were on a seasonal-basis, i.e discontinued for the fall/winter?

I'd be curious to hear how JFK-TXL did this summer...  Wink


User currently offlineEvan767 From United States of America, joined Aug 2005, 2957 posts, RR: 2
Reply 6, posted (7 years 10 months 5 days 2 hours ago) and read 4676 times:

Quoting HVNandrew (Reply 3):
Interresting how things change... a few months ago when DL reported an operating profit with a net loss, it was major glee. Now, simply some subdued satisfaction.

Anyway, great job DL.

That's a good way of looking at it Andrew.



The proper term is "on final" not "on finals" bud...
User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 7, posted (7 years 10 months 5 days 1 hour ago) and read 4579 times:

DL's operating profit margin was 4% for the month, down from better than 10% in July. August is always a weaker month than June or July because southern states go back to school earlier than northern states. DL shifted some of its extra int'l flying from ATL to JFK for the month of September but pulled down much of it.

Since several airlines issued guidance in August regarding weaker revenues, DL's near 13% improvement in RASM looks pretty good. CO is the only other airline that provides monthly RASM info and they were expecting a 6-7% improvement IIRC. There has also been alot of fare discounting this fall, indicating that fares might be a bit too high to keep flights at breakeven levels during the slow fall season.


User currently offlineN174UA From United States of America, joined Jun 2006, 994 posts, RR: 0
Reply 8, posted (7 years 10 months 4 days 23 hours ago) and read 4429 times:

Quoting RwSEA (Reply 7):
From what I hear, it was totally break even. No profit, but no loss either

During the SUMMER....meaning DL will get killed on it during the winter. Hopefully for DL's sake it was a seasonal flight...  Yeah sure


User currently offlineCslusarc From Canada, joined May 2005, 838 posts, RR: 0
Reply 9, posted (7 years 10 months 4 days 22 hours ago) and read 4351 times:

When do children in the US South go back to shool? I thought it was traditional that school started everywhere in the US and Canada on the Tuesday after Labor/Labour Day.


--cslusarc from YWG
User currently offlineHVNandrew From United States of America, joined Jan 2006, 428 posts, RR: 0
Reply 10, posted (7 years 10 months 4 days 22 hours ago) and read 4348 times:

Quoting Cslusarc (Reply 10):
When do children in the US South go back to shool? I thought it was traditional that school started everywhere in the US and Canada on the Tuesday after Labor/Labour Day.

It hasn't been that way in the US for years... especially in the south. Almost all the schools in all parts of the country are back in by the week before labor day, with many of the southern school back in by August 15. Some of the Northeastern schools still go back after Labor Day, though.


User currently offlineDTWAGENT From United States of America, joined Jan 2006, 1283 posts, RR: 0
Reply 11, posted (7 years 10 months 4 days 22 hours ago) and read 4330 times:

Keep going DL. You will make it....

Chuck


User currently offlineAloha717200 From United States of America, joined Aug 2003, 4477 posts, RR: 15
Reply 12, posted (7 years 10 months 4 days 19 hours ago) and read 4208 times:

For an airline the size of Delta, $11 million isn't bad. Clearly they aren't as bad off as they used to be. Sounds like word of Delta's imminent demise was greatly exaggerated.

Which works great for me. More SLC spotting! Big grin


User currently offlineArtieFufkin From United States of America, joined May 2006, 704 posts, RR: 0
Reply 13, posted (7 years 10 months 4 days 19 hours ago) and read 4185 times:

A let down for me. I expected better. I just compared the Aug. report to Jul. The costs were very much in line with one another. The only real diff was better revenue in July. That about was the sole reason for going from making 100 Mil to losing 10 Mil. (There was 1 mil in reorg expenses for Aug they didn't bother mentioning)

September should be worse revenue right? It the slowest Month of the Year?

Going forward the only thing in the pipeline I know of are DLX negotiations for lower rates. Possibly some gains to see from the end of fleet simplification. Every other cost program I know of is winding down in terms of results being reflected on the bottom line.


User currently offlineDelta787 From United States of America, joined May 2006, 321 posts, RR: 0
Reply 14, posted (7 years 10 months 4 days 12 hours ago) and read 4061 times:

Quoting N174UA (Reply 9):
During the SUMMER....meaning DL will get killed on it during the winter. Hopefully for DL's sake it was a seasonal flight...

Its already survived last years winter season. I expect that it will be able to do it again.



Fly Delta!
User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 15, posted (7 years 10 months 4 days 11 hours ago) and read 4013 times:

Quoting Aloha717200 (Reply 13):
Which works great for me. More SLC spotting!

DL has some neat news coming for SLC soon!

Quoting ArtieFufkin (Reply 14):
September should be worse revenue right?

DL pulled down alot of capacity after Labor Day as did alot of other carriers. DL also ran the airline very aggressively during the summer which meant that some employees worked overtime and flew more than minimum hours which makes sense since the peak is fairly short lived.

Fuel prices have fallen quite a bit and will help airlines through this winter; jet fuel prices didn't begin to come down until much later in the year.

Finally, several airlines have provided guidance regarding reduced RASM growth going into the fall. DL has not and their August results show they continue to improve revenue at very comparable levels. DL probably will compare fairly favorably going into the fall if they can maintain revenue growth while cutting costs while other airlines are seeing decreased revenues.


User currently offlineCHIFLYGUY From United States of America, joined Aug 2006, 141 posts, RR: 0
Reply 16, posted (7 years 10 months 4 days 11 hours ago) and read 3969 times:

Let's not forget the terrorism scare that came out in August. AA estimated this caused them to lose $50 million in revenue. DL was probably less affected, but still took a revenue hit to some extent.

User currently offlineBMIFlyer From UK - England, joined Feb 2004, 8810 posts, RR: 58
Reply 17, posted (7 years 10 months 4 days 11 hours ago) and read 3931 times:

Good stuff there for DL. Nice to see they are making progress  Smile


Lee



Sometimes You Can't Make It On Your Own
User currently offlineThePRGuy From , joined Dec 1969, posts, RR:
Reply 18, posted (7 years 10 months 4 days 9 hours ago) and read 3793 times:

Way to go for DL
My favourite US airline, glad to see they are weening themselves slowly out of the red  Smile
Thanks
PR


User currently offlineAero0729 From United States of America, joined Jul 2006, 76 posts, RR: 0
Reply 19, posted (7 years 10 months 4 days 8 hours ago) and read 3633 times:

Lets not forget without bankrupcy expeneses, Delta would be in the green by 30-40 million!

User currently offlineFiveMileFinal From United States of America, joined Oct 2005, 232 posts, RR: 0
Reply 20, posted (7 years 10 months 4 days 8 hours ago) and read 3503 times:

Hey, I gave em $400 of my money in August, and I'd do it again. I missed the Widget. I'll use 'em for transcons for sure.


You goin'? We fly you dere! You been? We done already flew up in dere!
User currently offlineBNinMSY From United States of America, joined Nov 2005, 332 posts, RR: 0
Reply 21, posted (7 years 10 months 4 days 7 hours ago) and read 3409 times:

All those new unnecessary uniforms and repainting of Song aircraft and those related expenses!

User currently offlineZone1 From United States of America, joined Jan 2005, 1035 posts, RR: 7
Reply 22, posted (7 years 10 months 4 days 7 hours ago) and read 3339 times:

Quoting WorldTraveler (Reply 16):
DL has some neat news coming for SLC soon!

Let me guess...
SLC-CDG?

Quoting FiveMileFinal (Reply 21):
Hey, I gave em $400 of my money in August, and I'd do it again.

I just booked my tickets for Thanksgiving on DL. I got a reasonable price, but defiantly more than what I got for the last 3 years. It will be nice to fly them after flying United all summer. The interesting thing is that my flight back to IND on the Sunday after Thanksgiving is a 9000 flight number and a 757. It seems like they send some strange equipment to IND on the Sunday after Thanksgiving. Three years ago I was on a 767-200.



/// U N I T E D
User currently offlineFreedom747 From , joined Dec 1969, posts, RR:
Reply 23, posted (7 years 10 months 4 days 6 hours ago) and read 3160 times:

They'll get things ironed out. The Delta Spirit within themselves is alive and well as ever, and I still feel the Spirit within me as I did when I was employed with the Big D.

User currently offlinePanamair From United States of America, joined Oct 2001, 4876 posts, RR: 25
Reply 24, posted (7 years 10 months 4 days 5 hours ago) and read 2902 times:
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Quoting ArtieFufkin (Reply 14):
A let down for me. I expected better. I just compared the Aug. report to Jul. The costs were very much in line with one another. The only real diff was better revenue in July. That about was the sole reason for going from making 100 Mil to losing 10 Mil. (There was 1 mil in reorg expenses for Aug they didn't bother mentioning)

September should be worse revenue right? It the slowest Month of the Year?

I agree it's somewhat disappointing and as you said, it was a revenue problem in August. The costs stayed pretty much the same as in July because DL was pretty much offering the same capacity. September revenue will be lower but then capacity was also lower so some of the costs will come down (including fuel). Even though operationally they have pretty much achieved most of the cuts except for the DCI component, there are other non-operating items that still have to be settled. Notice that there was a net loss because the interest expenses outweighed the operating profit; there are still debt items to be refinanced and renegotiated,etc., which should help lower some of the interest items. I also seem to recall CFO Ed Bastian saying that by the end of this year, they would have achieved approximately $2 billion of the targeted $3 billion in cost savings/revenue improvements. This means that there will continue to be some more cost saving/revenue improvement realization in 2007(e.g., the network restructuring and rebalancing of domestic vs. international is not done yet)


25 Panamair : TXL, like many other European routes, suffer during the winter, and is reduced in frequency (to 5x or 4x weekly from daily). Looking at past winter's
26 Zone1 : Are we going to see any RJ's being parked after the contract renegotiations? I'm kind of wondering why they haven't cut the amount of RJs flying.
27 DAL767400ER : From what it looks like, RJs will be parked, but their total will not be reduced. It'll primarily mean that current 50-seat RJs are being replaced wi
28 WorldTraveler : Those uniform did wonders in improving DL employee morale. It was the best $X million DL spent.
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