san747
Posts: 4345
Joined: Sun Dec 19, 2004 10:03 am

Delta Loses $5 Billion In 2004

Sat Jan 22, 2005 11:48 am

I read in the Business section of the Press-Enterprise (a local paper) the AP story that reports the following fun facts:

  1. Delta lost $5.2 Billion in 2004.
  2. Delta lost $2.2 Billion in the fourth quarter 2004.
  3. Fuel expenses increased $385 Million in the quarter.

The $5.2 Billion loss is the worst in the airline industry's history. Delta blames it on fuel, low fares, and a low economy. These wild cards are what will determine Delta's fate in 2005...

Your opinions?
Scotty doesn't know...
 
PPVRA
Posts: 7878
Joined: Fri Nov 12, 2004 7:48 am

RE: Delta Loses $5 Billion In 2004

Sat Jan 22, 2005 12:07 pm

They'll be around for 06. The new fares will get them off the nosedive.

PPVRA
"If goods do not cross borders, soldiers will" - Frederic Bastiat
 
ac7e7
Posts: 655
Joined: Mon Oct 25, 2004 7:27 am

RE: Delta Loses $5 Billion In 2004

Sat Jan 22, 2005 12:10 pm

Christ... give it up already....

I think it's time for a shakeup... file for bankruptcy protection and get the books in order. The new fares won't do anything for the airline without major cost cuts. The recent cost cutting will only get them through 2006.

 
mark777300
Posts: 377
Joined: Wed Apr 21, 2004 3:30 pm

RE: Delta Loses $5 Billion In 2004

Sat Jan 22, 2005 2:48 pm

would this mean anything for Song? I know that Delta has recently mentioned that they were planning on expanding Song, but I wonder how this large loss pans out for the future.
 
darrell
Posts: 229
Joined: Mon Jul 19, 1999 4:19 am

RE: Delta Loses $5 Billion In 2004

Sat Jan 22, 2005 2:49 pm

I have personally spent over $2300.00 flying Delta in 2004. New fares? I'm flying from Charleston, SC to Las Vegas in March. $180 round trip on Independence Air. Guess who I'll be flying with.....
those who have no vices have very few virtues
 
N79969
Posts: 6605
Joined: Tue Jan 29, 2002 1:43 am

RE: Delta Loses $5 Billion In 2004

Sat Jan 22, 2005 3:13 pm

How much of that $5 billion was cash and how much was non-cash: asset write-downs, one-time accounting-charges, and write-offs?

Whatever the balance turns out to be, $5 billion of economic value was destroyed in some form. Hopefully not much was cash.