Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Delta Reports Q1 2012 Results  
User currently offlinepanamair From United States of America, joined Oct 2001, 4955 posts, RR: 25
Posted (2 years 7 months 4 days 11 hours ago) and read 8073 times:
Support Airliners.net - become a First Class Member!

Reported a Net Loss of $39m (if excluding special items), or Net Profit of $124m (if including special items).

http://news.delta.com/index.php?s=43&item=1593

Total Revenues $8.4 billion (up 9%)

Net Profit = $124m (due to hedging gains) (+1.4% margin)
Net Loss (excluding specials) = -$39m (-0.5% margin)

Special items of $163m gain (including $151m for settled fuel hedging gains)

Operating Profit = $382m (+4.5% margin)
Operating Profit (excluding specials) = approx $220m (+2.6 margin) (guidance was for +1 to +3%)

Consolidated PRASM +14%
Mainline PRASM +15% (biggest gain was transatlantic up 22%)

Cash at 3/31/12: $5.7 billion

[Edited 2012-04-25 05:09:35]

15 replies: All unread, jump to last
 
User currently offlinePSU.DTW.SCE From United States of America, joined Jan 2002, 7708 posts, RR: 27
Reply 1, posted (2 years 7 months 4 days 11 hours ago) and read 7948 times:

Overall, another very solid quarter for DL, during what has traditionally been the weakest quarter of the year.

The plan to pull back on capacity on TATL seems to have worked, compared to Q1 2011 when the over-capacity across the Atlantic was a significant financial burden.

The fact that DL has averaged 10.6% over the past 12 months on return on invested capital highlights how they are achieving their financial targets. They've repeatively told the financial markets they want to achieve 10-12% on a continual basis.

It is interesting to see how good the operational performance was for the quarter, almost entirely driven by the fact that it was one of the warmest, and least-snowy winters on record. In fact, the warmest winter on record for much of the Midwest & Northeast since in the entire history of the aviation industry.

People on a.net are often critical of DL's decision making, but obviously they are doing something right and being disiplined their capacity and expenditures.


User currently offlinenwaesc From United States of America, joined Aug 2007, 3391 posts, RR: 9
Reply 2, posted (2 years 7 months 4 days 10 hours ago) and read 7894 times:

Quoting PSU.DTW.SCE (Reply 1):
The fact that DL has averaged 10.6% over the past 12 months on return on invested capital...

That one really jumped out to me as well.

Quote:
It is interesting to see how good the operational performance was for the quarter, almost entirely driven by the fact that it was one of the warmest, and least-snowy winters on record. In fact, the warmest winter on record for much of the Midwest & Northeast since in the entire history of the aviation industry.

True (though my station wound up having to deice this week)...

I wonder what the cost relief at the station(s) level has been? I've heard that MSP's savings on glycol alone was in the millions, but that's hearsay...



"Nothing ever happens here, " I said. "I just wait."
User currently offlineCubsrule From United States of America, joined May 2004, 23217 posts, RR: 20
Reply 3, posted (2 years 7 months 4 days 10 hours ago) and read 7881 times:

Quoting PSU.DTW.SCE (Reply 1):
People on a.net are often critical of DL's decision making, but obviously they are doing something right and being disiplined their capacity and expenditures.

Perhaps the problem is that being disciplined in capacity and expenditures - absolutely the right move financially - isn't the best thing for customers. I'd love to be able to fly a half-empty 77L whenever I want to go to ATL or SLC. That doesn't mean that it can or should happen.



I can't decide whether I miss the tulip or the bowling shoe more
User currently offlinePSU.DTW.SCE From United States of America, joined Jan 2002, 7708 posts, RR: 27
Reply 4, posted (2 years 7 months 4 days 10 hours ago) and read 7688 times:

Quoting nwaesc (Reply 2):
True (though my station wound up having to deice this week)...

I wonder what the cost relief at the station(s) level has been? I've heard that MSP's savings on glycol alone was in the millions, but that's hearsay...

I don't doubt there were significant savings both on glycol but also labor.

Granted, winter Q1 2011 was the other extreme and look how many millions of dollars DL lost in terms of revenue when ATL & NYC would go down for days at a time.

Quoting Cubsrule (Reply 3):
Perhaps the problem is that being disciplined in capacity and expenditures - absolutely the right move financially - isn't the best thing for customers. I'd love to be able to fly a half-empty 77L whenever I want to go to ATL or SLC. That doesn't mean that it can or should happen.

True, and that can go both ways. On the expenditures side, DL appears to be making smart investments and targeting revenue enhancing projects. No one can argue that the installation of lie flats on the international fleet, mods on the 744, installation of wifi, and the other various projects are bad choice.

On the capacity side, I agree it can get frustrating at times. I am doing a lot of 1-2 trips out of DTW to places like LEX, SDF, IND, CVG. I end up paying an arm and a leg for these trips (>$600). It is far cheaper to drive but I do not have the luxury of time (or the ability to routinely do 5-6+ hour drives on top of a full work day. DL sure makes money off of my $1.00 RASM on these flights.


User currently offlineyellowtail From United States of America, joined Jun 2005, 6298 posts, RR: 2
Reply 5, posted (2 years 7 months 4 days 10 hours ago) and read 7584 times:

Quoting DTW.SCE" class="quote" target="_blank">PSU.DTW.SCE (Reply 4):
On the capacity side, I agree it can get frustrating at times. I am doing a lot of 1-2 trips out of DTW to places like LEX, SDF, IND, CVG. I end up paying an arm and a leg for these trips (>$600). It is far cheaper to drive but I do not have the luxury of time (or the ability to routinely do 5-6+ hour drives on top of a full work day. DL sure makes money off of my $1.00 RASM on these flights.

And you are just the kind of passenger DL wants and loves!



When in doubt, hold on to your altitude. No-one has ever collided with the sky.
User currently offlineusairways85 From United States of America, joined Nov 2001, 3463 posts, RR: 7
Reply 6, posted (2 years 7 months 4 days 9 hours ago) and read 7407 times:

Quoting DTW.SCE" class="quote" target="_blank">PSU.DTW.SCE (Reply 4):
On the capacity side, I agree it can get frustrating at times. I am doing a lot of 1-2 trips out of DTW to places like LEX, SDF, IND, CVG. I end up paying an arm and a leg for these trips (>$600). It is far cheaper to drive but I do not have the luxury of time (or the ability to routinely do 5-6+ hour drives on top of a full work day. DL sure makes money off of my $1.00 RASM on these flights.

This has become the norm in the industry. US and UA also charge sky high fares for short hops along the east coast.


User currently offlineclemsonaj From United States of America, joined Aug 2009, 271 posts, RR: 0
Reply 7, posted (2 years 7 months 4 days 8 hours ago) and read 7116 times:

Anyone catch the first part of the conference call? I have tuned in during the Q&A section.

User currently offlinethreeifbyair From United States of America, joined Aug 2007, 704 posts, RR: 1
Reply 8, posted (2 years 7 months 4 days 7 hours ago) and read 6919 times:

Quoting DTW.SCE" class="quote" target="_blank">PSU.DTW.SCE (Reply 4):

On the capacity side, I agree it can get frustrating at times. I am doing a lot of 1-2 trips out of DTW to places like LEX, SDF, IND, CVG. I end up paying an arm and a leg for these trips (>$600). It is far cheaper to drive but I do not have the luxury of time (or the ability to routinely do 5-6+ hour drives on top of a full work day. DL sure makes money off of my $1.00 RASM on these flights.

And I thought $0.17 RASM was bad... Just too many darn miles from SEA to anywhere.  

DL does seem to be less interested in selling connections - it has become very difficult to find SEA-MSP-XXX routings that don't cost an arm and a leg or have terrible routings (via JFK, 3.5hr layovers, etc.) because capacity on the SEA-MSP leg is fairly tight now. I've had 0 empty seats on my last 4 trips. For some flights, DL.com doesn't even list connections over MSP as options in any fare bucket.

This is all good for DL's bottom line, but it is tough for connections to cities that don't have nonstop service out of SEA (PIT, IND, SDF, CMH, BUF, etc.) and are most efficiently routed via MSP/DTW/ORD. I won't fly through IAH to save a few dollars, sorry UA.


User currently offlinepanamair From United States of America, joined Oct 2001, 4955 posts, RR: 25
Reply 9, posted (2 years 7 months 4 days 7 hours ago) and read 6850 times:
Support Airliners.net - become a First Class Member!

Some notes from the earnings call:

- Best Q1 performance since 2000.
- March 2012 saw revenue premium to the industry for 12 consecutive months now
- Q1 Domestic: DTW/MSP performed particularly well; strength of close-in bookings
- Two days in March saw highest domestic unit revenues since 2008; normally July 4th weekend sees highest domestic unit revenues.
- Pacific: particular strength in NRT and Beach markets
- Corporate revenues up 11% in Q1; best were Financial Services and Manufacturing
- April PRASM up 11%; May high single digits (comps are harder because May 2011 was strong)
- LGA showing biggest margin increase and highest absolute margin of any hub (driven by the slot swap)
- Fully funded 2012 pension obligations in early April
- Will take charge in Q2 2012 for the early-out program
- Despite Euro doom and gloom, transatlantic business cabin traffic and revenues are up (driven from US side)
- Intense focus on transatlantic operational reliability
- Flatbed product having meaningful effect in customer preference scores and in unit revenues


User currently offlinestlgph From United States of America, joined Oct 2004, 9497 posts, RR: 26
Reply 10, posted (2 years 7 months 4 days 7 hours ago) and read 6728 times:

Other DAL conference call tid bits

* No plans to increase stake in Brazil's GOL
* DAL: no comment on Conoco refinery
* DAL CFO sees FY interest expense of $1 billion
* 2Q operating margin targeted 8-10%
* May unit revenue predicted at 'up high single ditgits'
* April unit revenue predicted up at 11%
* DAL expects to hit $10b net debt target next year
* Full year capacity cut still at 2-3% for FY 2012



if assumptions could fly, airliners.net would be the world's busiest airport
User currently offlinePSU.DTW.SCE From United States of America, joined Jan 2002, 7708 posts, RR: 27
Reply 11, posted (2 years 7 months 4 days 7 hours ago) and read 6661 times:

Where there any questions on the WN/FL 717 rumor? (Even though we already know the "no comment" response)

User currently offlineairtechy From United States of America, joined Dec 2006, 513 posts, RR: 0
Reply 12, posted (2 years 7 months 4 days 2 hours ago) and read 6143 times:

Great quarter for Delta in what is normally the slow months. If this keeps up, the profit sharing should be good next year.

I suspect that Delta will pick up a lot of the AA contracts with the uncertainty of their bankruptcy. This will certainly help the bottom line.

I believe May is the first month that the PMNW and PMDL flight attendants will bid and fly routes together. Let's hope that goes smoothly.  


User currently offlineyellowtail From United States of America, joined Jun 2005, 6298 posts, RR: 2
Reply 13, posted (2 years 7 months 4 days 1 hour ago) and read 6019 times:

For once LatAm seems to be lagging.....I know AA has been have fare sales left and right in the region. perhaps the need to match has been eating into their margins


When in doubt, hold on to your altitude. No-one has ever collided with the sky.
User currently offlineEA CO AS From United States of America, joined Nov 2001, 13704 posts, RR: 61
Reply 14, posted (2 years 7 months 3 days 22 hours ago) and read 4877 times:
Support Airliners.net - become a First Class Member!

Quoting nwaesc (Reply 2):
Quoting PSU.DTW.SCE (Reply 1):
The fact that DL has averaged 10.6% over the past 12 months on return on invested capital...

That one really jumped out to me as well.

I'm impressed that they've finally begun discussing ROIC targets; for years, AS was the only airline aggressively pursuing set ROIC goals.



"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
User currently offlinePIEAvantiP180 From United States of America, joined Sep 2009, 557 posts, RR: 0
Reply 15, posted (2 years 7 months 3 days 19 hours ago) and read 3874 times:
Support Airliners.net - become a First Class Member!

Solid numbers compared to last year. Congratulations to DL employees for all the hard work with the other operational performances they were able to achieve this quarter with on time, completion percentage, bags lost, and passenger complaints all have improved in the last year.

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...
UA Reports Q1 2010 Results posted Tue Apr 27 2010 06:07:19 by ual777
Delta Reports Q3 2009 Results posted Thu Oct 22 2009 10:31:37 by Panamair
Delta Reports Q3 2008 Results posted Wed Oct 15 2008 05:41:25 by Panamair
Delta Reports Q3 2006 Results posted Thu Nov 9 2006 22:40:37 by Panamair
Delta Reports July 2006 Results posted Wed Aug 30 2006 22:49:36 by Panamair
Delta Reports Q2 2006 Results posted Wed Aug 9 2006 22:39:09 by Panamair
Delta Reports Feb 2006 Results posted Thu Mar 30 2006 23:22:33 by Panamair
United Reports Q1 2005 Results posted Wed May 11 2005 19:54:52 by JMC1975
Delta Reports A Q1 Loss Of $1.1 Billion posted Thu Apr 21 2005 13:43:01 by DAL767400ER
Delta Q1 2007 Results posted Mon Apr 23 2007 15:09:16 by Alitalia744