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Delta Reports Q4 11 And Full Year Profits  
User currently offlinepanamair From United States of America, joined Oct 2001, 4977 posts, RR: 25
Posted (2 years 11 months 6 days 9 hours ago) and read 9671 times:
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http://news.delta.com/index.php?s=43&item=1532

Q4 2011:

Revenues: $8.4B +8%
Operating Profit: $726m (8.6% margin)
Net Profit: $425m (5.1% margin)
Net Profit excluding specials: $379m (4.5% margin)
PRASM up 11-12%

Full Year 2011:

Revenues: $35.1 billion +11%
Operating Profit: $1.98 billion (5.6% margin)
Net Profit: $854m (2.4% margin)
Net Profit excluding specials: $1.2 billion (3.4% margin)

Profit sharing: $89m in Q4; $264m full year.

45 replies: All unread, showing first 25:
 
User currently offlineCODC10 From United States of America, joined Jul 2000, 2463 posts, RR: 6
Reply 1, posted (2 years 11 months 6 days 8 hours ago) and read 9498 times:

Outstanding numbers. I think these results and the expected strong performance of UAL make the merger case for AMR a near certainty. The question remains, however, as to who the dance partner will be...

User currently offlinerwy04lga From United States of America, joined Jul 2005, 3176 posts, RR: 8
Reply 2, posted (2 years 11 months 6 days 6 hours ago) and read 9117 times:

Congrats to all at Delta


Just accept that some days, you're the pigeon, and other days the statue
User currently offlineual777uk From United Kingdom, joined Nov 2005, 3356 posts, RR: 1
Reply 3, posted (2 years 11 months 6 days 6 hours ago) and read 8991 times:

Nice figures, well done all at Delta.

Lets see what UAL has to offer


User currently offlineb727fa From United States of America, joined Jun 2011, 817 posts, RR: 0
Reply 4, posted (2 years 11 months 6 days 5 hours ago) and read 8869 times:

And how nice to get my 4.85% profit sharing!


My comments/opinions are my own and are not to be construed as the opinion(s) of my employer.
User currently offlineDeltaMD90 From United States of America, joined Apr 2008, 7980 posts, RR: 51
Reply 5, posted (2 years 11 months 6 days 5 hours ago) and read 8709 times:

Are these numbers great numbers?

Quoting panamair (Thread starter):
Net Profit excluding specials: $379m (4.5% margin)
Quoting panamair (Thread starter):
Net Profit excluding specials: $1.2 billion (3.4% margin)

I thought a 3-4% profit margin wasn't that good. Better than a loss, yes, but what is a "healthy" profit margin?

Regardless, good job DL making money! A huge turn around in a few years. Also, customer service is doing very well from what I hear!



Ironically I have never flown a Delta MD-90 :)
User currently offlinealitalia744 From United States of America, joined Mar 2000, 4764 posts, RR: 44
Reply 6, posted (2 years 11 months 6 days 5 hours ago) and read 8627 times:

Quoting DeltaMD90 (Reply 5):
I thought a 3-4% profit margin wasn't that good. Better than a loss, yes, but what is a "healthy" profit margin?

Regardless, good job DL making money! A huge turn around in a few years. Also, customer service is doing very well from what I hear!

In an industry that perpetually operates at a loss and the difference between a loss and profit can be as little as a fraction of a percentage post, I'd say 3-4 is decent. +10 would obviously be better, but you take what you get.



Some see lines, others see between the lines.
User currently offlineB747forever From Sweden, joined May 2007, 17149 posts, RR: 10
Reply 7, posted (2 years 11 months 6 days 5 hours ago) and read 8559 times:

Quoting ual777uk (Reply 3):
Lets see what UAL has to offer

When will UAL publish their numbers? Will be interesting to compare them with Delta.



Work Hard, Fly Right
User currently onlinemayor From United States of America, joined Mar 2008, 10670 posts, RR: 14
Reply 8, posted (2 years 11 months 6 days 4 hours ago) and read 8389 times:

Quoting alitalia744 (Reply 6):

In an industry that perpetually operates at a loss and the difference between a loss and profit can be as little as a fraction of a percentage post, I'd say 3-4 is decent. +10 would obviously be better, but you take what you get.

We (at DL) were always told that in a normal year, a 2% margin was par for the course. Anything above that was gravy.



"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
User currently offlinesxf24 From United States of America, joined Aug 2007, 1262 posts, RR: 0
Reply 9, posted (2 years 11 months 6 days 4 hours ago) and read 8287 times:

Quoting B747forever (Reply 7):
When will UAL publish their numbers? Will be interesting to compare them with Delta.

Tomorrow morning.


User currently offlineB747forever From Sweden, joined May 2007, 17149 posts, RR: 10
Reply 10, posted (2 years 11 months 6 days 4 hours ago) and read 8227 times:

Quoting sxf24 (Reply 9):

Tomorrow morning.

Great! Will that include CO?



Work Hard, Fly Right
User currently offlinepanamair From United States of America, joined Oct 2001, 4977 posts, RR: 25
Reply 11, posted (2 years 11 months 6 days 2 hours ago) and read 8028 times:
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Notes from the earnings conference call - no earth-shattering news:

- Continued to generate revenue premium to industry; PRASM for Q4 up 12%, with December alone up 13%. Will start to report PRASM growth in future monthly traffic reports.
- 24% increase in MRO revenues
- ATL is most profitable hub, followed by MSP.
- Also seeing strong revenue increases on transcons
- US-originating Japan traffic almost back to pre-quake levels
- Corporate revenues up 15% in Q4
- January 2012 PRASM up 15% expected; with Transatlantic up 17% (due to aggressive capacity cuts and continued strong transatlantic corporate traffic)
- February 2012 tracking along with January; March high single digits to low double digits currently
- Transpacific corporate shares and yields improving due to product improvements (flat-beds, etc); beach markets still strong due to strong yen; non-Japan transpac flying showing high single digit/low double-digit unit revenue growth
- NYC corporate shares up substantially, but still not generating revenue premium to industry in NYC yet.
- LGA slot swap benefits will be evident from July on (after the entire swap is complete); may show some bumps in the spring due to overlaps with US during transition period.
- Overall, both corporate and leisure traffic and revenue trends still holding up well into 2012; booking windows for March and beyond (which is mostly leisure travel obviously) showing gains right now in all regions.
- Partnerships with GOL, Aerolineas, and Aeromexico will enable organic growth in Latin America...


User currently offlinepanamair From United States of America, joined Oct 2001, 4977 posts, RR: 25
Reply 12, posted (2 years 11 months 6 days 2 hours ago) and read 7988 times:
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Quoting DeltaMD90 (Reply 5):
I thought a 3-4% profit margin wasn't that good. Better than a loss, yes, but what is a "healthy" profit margin?

As alitalia744 correctly stated, margins in the airline business are notoriously thin....for comparison sake, here are the margins of other carriers which have reported so far:

Q4 2011:

Southwest:

Operating Margin: 3.6%
Net Margin: 3.7%
Net Margin (excluding specials): 1.6%

US Airways:

Operating Margin: 3.4%
Net Margin: 0.6%
Net Margin excluding specials: 0.7%


User currently offlineMax Q From United States of America, joined May 2001, 4783 posts, RR: 19
Reply 13, posted (2 years 11 months 6 days 1 hour ago) and read 7717 times:

Impressive, i wish we had their management at UAL


The best contribution to safety is a competent Pilot.
User currently offlineCODC10 From United States of America, joined Jul 2000, 2463 posts, RR: 6
Reply 14, posted (2 years 11 months 6 days ago) and read 7322 times:

Quoting Max Q (Reply 13):
Impressive, i wish we had their management at UAL

Right, the ones who pushed NWA/DAL pilots into giving up the farm on scope for the promise of better work rules? How did that Delta + $1 offer work out for the UAL/CAL people?

 

That said, I think Anderson has done a stellar job at DL thus far, much better than I expected when the news broke that he would be Grinstein's successor. As far as the team at UAL, the book is still out.


User currently offlineyellowtail From United States of America, joined Jun 2005, 6358 posts, RR: 2
Reply 15, posted (2 years 11 months 6 days ago) and read 7321 times:

And I see they are boosting capacity where the growth is and where they have a competitor (AA) with a slight image problem now.....Latin America.


When in doubt, hold on to your altitude. No-one has ever collided with the sky.
User currently offlinedelimit From United States of America, joined Jan 2009, 1513 posts, RR: 2
Reply 16, posted (2 years 11 months 6 days ago) and read 7301 times:

Great numbers. Nice work, DAL.

Great to see further debt reduction and continued discipline. I am not expecting much positive from the economy for the next few years. Nice to see DL is staying focused on running a tighter ship.

Margin is 100% industry-specific. Some industries are traditionally high (for instance, software averages margins in the 20% range), others are low (airlines, supermarkets, PCs for anyone who isn't Apple). Generally, if you're selling a commodity, you expect lower margins and make you money on volume.


User currently onlinemayor From United States of America, joined Mar 2008, 10670 posts, RR: 14
Reply 17, posted (2 years 11 months 6 days ago) and read 7097 times:

Quoting CODC10 (Reply 14):
Right, the ones who pushed NWA/DAL pilots into giving up the farm on scope for the promise of better work rules? How did that Delta + $1 offer work out for the UAL/CAL people?

As I recall, the management previous to Grinstein (Leo & gang) had given the pilots an enormous contract with a huge pay raise, which probably wasn't sustainable at all and had to be pared down to realistic levels.



"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
User currently offlineDeltaMD90 From United States of America, joined Apr 2008, 7980 posts, RR: 51
Reply 18, posted (2 years 11 months 5 days 21 hours ago) and read 6193 times:

Quoting panamair (Reply 11):
- ATL is most profitable hub, followed by MSP.

I have to keep this statistic handy for the AA/DL threads. I don't think that merger would happen, but this stat can at least keep the "DL would ditch DTW and MSP for ORD" crowd quiet! MSP is an excellent hub and serves a great part in the DL network with little competition



Ironically I have never flown a Delta MD-90 :)
User currently offlineMax Q From United States of America, joined May 2001, 4783 posts, RR: 19
Reply 19, posted (2 years 11 months 5 days 21 hours ago) and read 5899 times:

Quoting CODC10 (Reply 14):

Right, the ones who pushed NWA/DAL pilots into giving up the farm on scope for the promise of better work rules

Yes.

Quoting CODC10 (Reply 14):
How did that Delta + $1 offer work out for the UAL/CAL people?

Er, it hasn't, we are still in negotiation.

Quoting CODC10 (Reply 14):



That said, I think Anderson has done a stellar job at DL thus far, much better than I expected when the news broke that he would be Grinstein's successor.

Exactly my point.

Quoting CODC10 (Reply 14):
As far as the team at UAL, the book is still out.


That book is written and published, they are led by a clown with no vision, experience or competence.



The best contribution to safety is a competent Pilot.
User currently offlinePIEAvantiP180 From United States of America, joined Sep 2009, 558 posts, RR: 0
Reply 20, posted (2 years 11 months 5 days 20 hours ago) and read 5749 times:

Congratulations to DL and its employees, I'm sure allot of work and sacrifice went into making what it has become today. Last year was the first full year of one integrated company and it shows in all of the starts: on time, lost baggage, customer satisfaction and so on. Keep up the great work. Does anybody have a link for the transcript of the conference call?

User currently offlinedelimit From United States of America, joined Jan 2009, 1513 posts, RR: 2
Reply 21, posted (2 years 11 months 5 days 20 hours ago) and read 5719 times:

I don't have a link, but it will most likely be available shortly after on SeekingAlpha.

User currently offlineBD338 From United States of America, joined Jul 2010, 740 posts, RR: 0
Reply 22, posted (2 years 11 months 5 days 20 hours ago) and read 5707 times:

All hail the power of ancillary fees  

Seriously though, good to see them making money. Without profit any company will cease to exist at some point. They do seem to be making a push for the corporate market and less on leisure, only so much of that to go around so reducing focus/ignoring leisure and less frequent fliers (say Silver and below) might not be quite so smart for the long term. Only time will tell. For now, good job making a profit in these tough times.


User currently offlinerichierich From United States of America, joined Nov 2000, 4298 posts, RR: 6
Reply 23, posted (2 years 11 months 5 days 19 hours ago) and read 5454 times:

Quoting alitalia744 (Reply 6):

In an industry that perpetually operates at a loss and the difference between a loss and profit can be as little as a fraction of a percentage post, I'd say 3-4 is decent. +10 would obviously be better, but you take what you get.

Very true.
I think these numbers generally speak very positively about Delta - it's ashame it took BK to get all the finances back on to solid ground but I don't think it could have happened otherwise.

Quoting BD338 (Reply 22):
All hail the power of ancillary fees

No doubt.



None shall pass!!!!
User currently offlineFlyPNS1 From United States of America, joined Nov 1999, 6733 posts, RR: 24
Reply 24, posted (2 years 11 months 5 days 19 hours ago) and read 5396 times:

Quoting Max Q (Reply 19):
That book is written and published, they are led by a clown with no vision, experience or competence.

Except UAL is producing financial results that are near equivalent to the same results that DL is producing. You called DL's results "awesome" so something doesn't make sense hear.


25 Post contains images jetlanta : You think he might have some sort of personal bias?
26 LipeGIG : As said before, a net profit margin of 3-4% is not amazing, but with the competition nowadays, it's great. The healthy comes from the sustainability
27 Post contains images mayor : Seeing as how UA's results won't be known until tomorrow morning (1-26), do you have some sort of crystal ball?
28 Coronado : You have to admit that the current Delta management team seems to be a pretty low ego bunch. Every quarter they report on the hard work being done by
29 Max Q : Tomorrow's results will include $247 M in 'special charges', so not even close actually. I certainly do. Completely agree, as I said, I wish we had t
30 lucky777 : Fantastic quarter, and for that matter year for Delta. Just think what might have been had it not been for the terrible earthquake/tsunami in japan ea
31 nantoine : I've flown Delta a dozen times over the past year inside the US and transatlantic. I think they're doing a stellar job, both on the ground and in the
32 mikey72 : It's great to see an American carrier finally getting its act together after the nightmare that was the last decade ! Not just financially but in term
33 FlyPNS1 : Much of that is merger related that DL had too in years prior. I'm sure UA's management wished they could have the DL pilot group too!! Look, I'm not
34 nwaesc : I don't think it's him so much as it is Halter & Hauenstein. JMHO...
35 cokepopper : Yeah no personal bias there..... The TEAM has done a stellar job. As in the transcripts from the earnings call, and in the memo's to employees. They
36 nwaesc : Not in this context... I was referring to someone who opined that they thought RA was doing a great job. I contend that the 2 I mentioned are the one
37 LAXtoATL : CEOs aren't responsible for heavy lifting! Their job is to build a team that can execute on their vision. If RA has surrounded himself with capable p
38 jetlanta : What he said.
39 Max Q : If they did they would have to pay them a lot more.
40 NWAdeicer : Seeing that we are talking about Delta and profits I thought I would bring up a question. I have two close friends that work in a spoke station. One h
41 usdcaguy : I'm sure many people feel the same way. When two companies merge, someone always gets the end of the stick, and the unions can do nothing about it if
42 FlyASAGuy2005 : The answer seeems very simple to me and this happened to some PMDL folks too but my question is, were they cleaners with NW during the time the mecha
43 nwaesc : Much of the CLT-including the 2 I mentioned- were already there when RA joined from UHC. The company has decided to use a person's PAD date for pay p
44 FlyPNS1 : I'm sure UA's management would pay more if they could get more large RJ's at the regionals.
45 b727fa : It sounds like they changed their PT dates to Full-Time Equivalent dates.
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