Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
DL Reports Q4/2009 Loss  
User currently offlineAlitalia744 From United States of America, joined Mar 2000, 4741 posts, RR: 45
Posted (4 years 5 months 2 weeks 3 days 19 hours ago) and read 3571 times:

DL posted a slightly improved Q4 YOY.

Quote:
Delta Air Lines Reports 2009 Financial Results

Jan 26, 2010

ATLANTA, Jan. 26 /PRNewswire-FirstCall/ -- Delta Air Lines (NYSE: DAL) today reported financial results for the December quarter and full year 2009. Key points include:

* Delta's net loss excluding special items(1) for the December 2009 quarter was $225 million, or $0.27 per share. This result is $285 million better than the prior year quarter on a combined basis(2) excluding special items.
* Delta's net loss was $25 million, or $0.03 per share, for the December 2009 quarter.
* Delta's net loss for 2009 was $1.2 billion, including $169 million in special items. Excluding special items and $1.4 billion of fuel hedge losses, Delta's net profit for 2009 was $291 million.
* Delta ended 2009 with $5.4 billion in unrestricted liquidity, a $400 million increase year over year.
* Delta continued its successful integration of Northwest Airlines and received approval from the Federal Aviation Administration for a single operating certificate at year end.


http://news.delta.com/index.php?s=43&item=872

Nice to see a CY net profit excluding hedges. Unrestricted liquidity also improved.


Some see lines, others see between the lines.
12 replies: All unread, jump to last
 
User currently offlineCODC10 From United States of America, joined Jul 2000, 2388 posts, RR: 6
Reply 1, posted (4 years 5 months 2 weeks 2 days 14 hours ago) and read 2963 times:

No Delta folks want to weigh in on the financials? I thought it was a fairly solid result, all things considered.

I guess discussion of a quarterly and full-year loss is not as compelling as speculation about which 744 will go in first for flat seats in BE or when the PHL Sky Club will open...


User currently offlineJetlanta From United States of America, joined Jul 2001, 3230 posts, RR: 35
Reply 2, posted (4 years 5 months 2 weeks 2 days 11 hours ago) and read 2846 times:

Interesting credit analyst comments:

Quote:
"Delta remains the only airline with a positive 2010
operational story -- everyone else is counting on yield and
traffic growth to cover increasing unit costs," analysts at
CreditSights said in a report.

"Now able to combine both airline units, the marketing and
organizational synergies of the world's largest airline can be
fully realized," they said.



Quote:
"We expect revenue growth and profitability to be restored
in 2010, despite a potentially more tepid economic recovery.
Delta continues to cut costs and capex, and free cash flow is
rapidly increasing," Gimme Credit's Bryan said.

http://www.reuters.com/article/idCNN2719243220100127?rpc=44


User currently offlineExFWAOONW From United States of America, joined Nov 2009, 399 posts, RR: 0
Reply 3, posted (4 years 5 months 2 weeks 2 days 11 hours ago) and read 2789 times:

Gee, a few more checked bag fees and they could have covered those special items. mischievous 

I wonder how they will increase revenues while parking the DC9-30/40 (according to posts in another topic). Are they planning on a large capacity shrinkage in 2010?



Is just me, or is flying not as much fun anymore?
User currently offlineToobz From Finland, joined Jan 2010, 765 posts, RR: 0
Reply 4, posted (4 years 5 months 2 weeks 2 days 10 hours ago) and read 2729 times:



Quoting CODC10 (Reply 1):

No Delta folks want to weigh in on the financials? I thought it was a fairly solid result, all things considered.

I guess discussion of a quarterly and full-year loss is not as compelling as speculation about which 744 will go in first for flat seats in BE or when the PHL Sky Club will open...


Lol seems to be the case. I don't think there were really any surprises with the results..Jetlanta thanks for posting that. Let's hope 2010 is a good year for DL!


User currently offlinePeanuts From Netherlands, joined Dec 2009, 1438 posts, RR: 4
Reply 5, posted (4 years 5 months 2 weeks 2 days 10 hours ago) and read 2660 times:

Two words are key: Debt Reduction

DL (and a few others) seem to understand the current economic climate and outlook extremely well. Now if only the US government would follow...

Aside from planned deliveries, DL is shelving short and mid term plans for flashy new planes (e.g. NW787) and are investing in the product they have (refurbishments) while taking advantage of cheap equipment (MD90) being available in the marketplace today.

"Delta remains the only airline with a positive 2010
operational story -- everyone else is counting on yield and
traffic growth to cover increasing unit costs," analysts at
CreditSights said in a report.

IF this is true and IF DL "wins" in New York (JFK-LGA combo, going after higher yielding customers), things are looking up a bit. We may see the stock price get closer to $17-18 this year.
The "quest for NY" won't fully materialize in 2010 though. There are some major hurdles to overcome. Competition is not going to sit by idle and watch it all happen.

http://www.marketwatch.com/story/del...ying-to-win-in-new-york-2010-01-26
"Carrier focuses on premium-paying passengers to fatten its bottom line"

"...everyone else is counting on yield and traffic growth to cover increasing unit costs," (CreditSights)
VS.
"Carrier focuses on premium-paying passengers to fatten its bottom line" (MarketWatch)

These are seperate quotes but they seem to be contradictory. Unless DL has all its costs in line and higher yield customers is just the gravy  Yeah sure .

Another tidbit from link:

"By early February, the Atlanta-based carrier expects government approval for a plan to swap operating slots at Reagan National for slots at LaGuardia currently held by US Airways Group".



Question Conventional Wisdom. While not all commonly held beliefs are wrong…all should be questioned.
User currently offlineMasseyBrown From United States of America, joined Dec 2002, 5349 posts, RR: 7
Reply 6, posted (4 years 5 months 2 weeks 1 day 15 hours ago) and read 2426 times:



Quoting Toobz (Reply 4):
Let's hope 2010 is a good year for DL!

I think that will be true and, along with most other carriers, DL will have a profitable 2010. A real understanding of DL's numbers, however, will have to await the 10K. What info they put out was confusing even to the financial reporters, with one reporting a revenue gain and others reporting a revenue loss.

Combined revenue, the important version of the story, was down about 12%, compared to down 8% at CO and UA, down 7% at AA, down 5% at US, and down 1.5% at WN. This says there is still no revenue synergy coming from the merger and DL lost share without seeing much improvement in yield. Perhaps the coming single schedule will make a difference.



I love long German words like 'Freundschaftsbezeigungen'.
User currently offlineDeltaL1011man From United States of America, joined Sep 2005, 9255 posts, RR: 14
Reply 7, posted (4 years 5 months 2 weeks 1 day 15 hours ago) and read 2409 times:



Quoting ExFWAOONW (Reply 3):
I wonder how they will increase revenues while parking the DC9-30/40 (according to posts in another topic). Are they planning on a large capacity shrinkage in 2010?

By adding MD90s it should stay close to what it is now.



yep.
User currently offlineSESGDL From United States of America, joined Jan 2001, 3464 posts, RR: 10
Reply 8, posted (4 years 5 months 2 weeks 1 day 14 hours ago) and read 2327 times:



Quoting DeltaL1011man (Reply 7):
By adding MD90s it should stay close to what it is now.

I doubt that will happen. DL's forecasting a 3-5% reduction in mainline capacity for Q1. One of the main reasons for merging DL/NW was to reduce capacity, thus far they've been keeping with that.

Jeremy


User currently offlineDeltaL1011man From United States of America, joined Sep 2005, 9255 posts, RR: 14
Reply 9, posted (4 years 5 months 2 weeks 1 day 14 hours ago) and read 2281 times:



Quoting SESGDL (Reply 8):
I doubt that will happen. DL's forecasting a 3-5% reduction in mainline capacity for Q1. One of the main reasons for merging DL/NW was to reduce capacity, thus far they've been keeping with that.

Ok i guess i should have worded it better, by adding more MD90s DL will replace the DC-9s and it wont look like they lost much capacity. All they said tuesday(which BTW that call sucked, they didn't say really anything about the 1B going into the fleet.) was they would be around the same at the end of 2010. I do believe they will be down a bit in Q1 but they will grow a good bit in the summer. The biggest question is routes like ATL-PRG/SVO ect that went seasonal last year. (IE will they be gone again come winter or will they stay like the years before.)



yep.
User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 10, posted (4 years 5 months 2 weeks 14 hours ago) and read 2014 times:

DL will likely operate as much summer seasonal service as they can justify....

One of the signfiicant comments from DL's earnings release is that they believe they cut more capacity in the 4th quarter than what was needed to generate higher yields or lower costs... so it is likely that DL will add capacity to the greatest extent possible.

Also, having stable fuel hedges goes a very long way to helping keep capacity in the market in the midst of increasing fuel prices. As of right now, most US airlines have similar hedge positions - ie there is no market dominant carrier like WN that ran away w/ growth in the last fuel spike because they had far better hedges.
It makes little sense to invest in new aircraft solely for the sake of fuel efficiencies if fuel hedges can accomplish the same thing in controlling fuel costs - and you must have hedges regardless of the aircraft you fly.... hedges will help keep fuel thirsty aircraft like the 744 in the fleet because even if fuel prices spike, DL should not feel the effect to the degree they would if they were unhedged.

The comment about DL's leverage coming down is very significant. DL is generating billions of dollars in free cash flow - airlines very typically can do that - and in the absence of large amounts of debt, that cash wiill go directly to reducing debt. AMR has done it over the past couple years and they still have costs that are much higher than DL. Lowering debt levels and keeping lower costs will go a very long way to keeping DL at the forefront of the industry.

The biggest issue of 2010 will be labor integration.... may it be smooth and equitable....


User currently offlineMasseyBrown From United States of America, joined Dec 2002, 5349 posts, RR: 7
Reply 11, posted (4 years 5 months 2 weeks 13 hours ago) and read 1917 times:



Quoting WorldTraveler (Reply 10):
The comment about DL's leverage coming down is very significant.

Agreed. DL previously stated that a 1% rise in interest rates would cost them $100 million annually in interest on their variable debt. So the sooner they pay the variable rate issues down, the better. DL had interest rate swaps on about 25% of the value of their variable debt as of Sept 30. (Interestingly, the swaps came with NW in the merger.) We should see an increase in those hedges for Dec 31; that would be another valuable and fairly cheap insurance policy.



I love long German words like 'Freundschaftsbezeigungen'.
User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 12, posted (4 years 5 months 2 weeks 9 hours ago) and read 1772 times:

NW was more aggressive in using financial hedges and derivatives than DL... partly because of their exposure to the Japanese market and their experience w/ the LBO. DL has learned some of those techniques from NW

Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
Delta Reports Q3 2009 Results posted Thu Oct 22 2009 10:31:37 by Panamair
SAS Reports 1 Billion SEK Loss posted Wed Aug 12 2009 02:33:40 by Robbie86
DL Reports JAN Loads posted Thu Feb 5 2009 13:39:42 by DLPMMM
F9 Delays Annual Report- But Reports $59.4mil Loss posted Tue Jun 17 2008 09:55:11 by LAXintl
Ryanair Reports Last Quarter Loss... posted Tue Jun 3 2008 00:36:11 by Beaucaire
Allegiant Reports Q4 And Year End Results posted Tue Jan 29 2008 19:05:43 by FATFlyer
DL Posts $2B 4Q Loss posted Wed Feb 14 2007 15:26:26 by HVNandrew
CO Reports $66 Million Loss For 1Q posted Thu Apr 20 2006 13:03:57 by Cory6188
NW Reports 1st Quarter Loss posted Thu Apr 21 2005 15:55:07 by Nwcoflyer
SAS Reports Another Huge Loss posted Thu Feb 10 2005 09:09:08 by TR