yul332LX
Posts: 798
Joined: Sat Feb 07, 2004 5:15 am

Delta Air Lines To Take $1.65bn Charge

Wed Jul 14, 2004 5:25 am

Delta Air Lines will take a $1.65bn non-cash charge in the second quarter due to uncertainty about when it will generate sufficient taxable income to take advantage of its $1.53bn of deferred income tax assets...

...It warned on Tuesday that its "actual and projected financial performance for 2004 has been significantly impacted by higher-than- expected fuel costs and lower-than-anticipated domestic yields"...

...Mr Higgins predicted that the charge could send a further signal to Delta's pilots of the airline's precarious financial position.


Source: http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1087373686652&p=1012571727088
Edit: Another source - http://news.airwise.com/stories/2004/07/1089717803.html

[Edited 2004-07-13 22:29:49]
E volavo, volavo felice più in alto del sole, e ancora più su mentre il mondo pian piano spariva lontano laggiù ...
 
Lono
Posts: 1136
Joined: Sun Apr 04, 2004 5:47 pm

RE: Delta Air Lines To Take $1.65bn Charge

Wed Jul 14, 2004 5:31 am

Getting serious at DL.... I hate to see this stuff...

[Edited 2004-07-13 22:35:36]
Wally Bird Ruled the Skys!
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: Delta Air Lines To Take $1.65bn Charge

Wed Jul 14, 2004 6:47 am

Sad to see this happening.
You can cut the irony with a knife
 
MMEPHX
Posts: 143
Joined: Mon Mar 29, 2004 10:54 am

RE: Delta Air Lines To Take $1.65bn Charge

Wed Jul 14, 2004 11:35 am

"...Mr Higgins predicted that the charge could send a further signal to Delta's pilots of the airline's precarious financial position."


"could"...should....but probably won't. Sad days at DL.

 
dl021
Posts: 10836
Joined: Fri May 21, 2004 12:04 pm

RE: Delta Air Lines To Take $1.65bn Charge

Wed Jul 14, 2004 12:00 pm

I don't really know what more the airlines mgt could do to signal the pilots...maybe a smoke grenade, strobe, flare gun, vs-17 panel, and a very large bonfire on the lawn at the headquarters in ATL. These guys know the airline is in a very bad situation and for some reason believe that they won't have to sacrifice the way everyone else there has.

SO, unions are a good thing because....?
Is my Pan Am ticket to the moon still good?
 
SESGDL
Posts: 2610
Joined: Sat Jan 13, 2001 6:25 am

RE: Delta Air Lines To Take $1.65bn Charge

Wed Jul 14, 2004 1:35 pm

I'm truly hoping that DL can figure this all out, they are my favorite airline by far, and it makes me look back to 1997 and 1998 when profits were over $1.5 billion. I really hope they stick around, I can't imagine the US airline industry without Delta.

Jeremy
 
milesrich
Posts: 1508
Joined: Sun Jul 06, 2003 2:46 am

RE: Delta Air Lines To Take $1.65bn Charge

Wed Jul 14, 2004 2:18 pm

This $1.65 Billion Charge is just an accounting entry. The CPA's have said, look guys, it is not likely you will make money for a while so having this loss carry forward on your books overstates your financial position. I believe, if memory serves me correctly, that tax loss carryforwards can be brought forward only five years, which means that the loss for 2000, if not used next year, will be gone. While this is not a cash loss situation, it will make the balance sheet insolvent. In otherwords, owner's equity will be a negative figure, (positive on the balance sheet because it is a right hand side entry). This may give Delta the push into Chapter 11, so that they can tell their 7,000 prima donnas, who can't probably go earn $50,000.00 annually doing anything else, where to get off so to speak. It is just a shame that these Radical Selfish Republicans, who are only pro their own union, are going to be able to put so many others out of work. May they rot in . . . .

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