jayspilot
Posts: 237
Joined: Wed May 23, 2001 12:32 pm

Better Times At Delta

Tue Sep 20, 2005 11:21 am

With Delta's current future looking "not so hot" I dug this up from 1998 showing how Delta did just 7 years ago. It is truely amazing how times have changed!


Delta net income soars to a record $1 billion
by Mark Gallagher
DELTA AIRLINES has reported a record net income of $1 billion for the fiscal year 1998 and quarterly net income of $362 million.
This is a rise of 13% on the net income, whilst its operating margin rose by 12% on the previous year. As well as this, the airline had a record operating cash flow of $3 billion, up 47% on last year. In a statement, the company said their record fiscal year demonstrates their underlying financial strength and their continued ability to deliver strong margins and operating cashflow.
"Preliminary data indicates Delta's June on-time performance will place it within the top tier of the major network carriers," the statement read. The annual report showed other good news for Delta, as in the first five months of 1998, Delta had significantly fewer customer complaints than its two largest competitors, despite carrying 30% more passengers. Their mishandled baggage rate for those months was 12% better than the industry average. "Looking ahead, we will continue to invest in our customers," Delta's Leo Mullin said. "During fiscal 1999, Delta will complete our aircraft interior enhancements, begin to implement significantly improved gate and boarding processes, upgrade facilitates at seventy six additional airports and renovate eight additional Crown rooms." Delta employees will now share in a record profit-sharing payout exceeding $180 million for fiscal 1998, a 24% increase on 1997's record payout. Delta and its worldwide partners operate over 5,000 flights each day to 62 countries from 12 US gateway cities. Delta carries more passengers worldwide than any other airline network, and is the leading US airline operating the Atlantic route
 
BNAflyer78
Posts: 256
Joined: Sun Feb 20, 2005 10:37 am

RE: Better Times At Delta

Tue Sep 20, 2005 11:59 am

Wow - Thanks for that!

Great memories for such a fantastic airline. I certainly hope we'll see Delta prosper once again....
Long live the Widget!
 
positiverate
Posts: 1543
Joined: Thu May 05, 2005 10:35 pm

RE: Better Times At Delta

Tue Sep 20, 2005 12:02 pm

As you recall, everyone was making money back then. The entire industry has gone through rough times, not just DL.
 
AirRyan
Posts: 2398
Joined: Wed Mar 30, 2005 9:57 am

RE: Better Times At Delta

Tue Sep 20, 2005 12:23 pm

Wow, time to start taking some of that oil the US taxpayers are paying for in Iraq and build a few more refineries that happen not to be in Hurricane alley for God, Allah, or Buhdda's sakes!

Here's to both DL and NW soon emerging from Ch11 stronger than ever.
 
LongbowPilot
Posts: 526
Joined: Mon Jan 17, 2005 4:16 am

RE: Better Times At Delta

Tue Sep 20, 2005 2:14 pm

Quoting Positiverate (Reply 2):
As you recall, everyone was making money back then. The entire industry has gone through rough times, not just DL.

I do believe it was the most an airline ever made in a year though... That is why it is stunning.
 
jayspilot
Posts: 237
Joined: Wed May 23, 2001 12:32 pm

RE: Better Times At Delta

Tue Sep 20, 2005 11:51 pm

As said above, yes everyone was making money, but Delta was making the most. No one else was making a billion a yr. Its just amazing to think about how in their best yrs ever Delta and the rest were making 1 billion and how in their worst they lose a billion a quarter.
 
DeltaGuy
Posts: 3965
Joined: Wed Sep 12, 2001 5:25 am

RE: Better Times At Delta

Tue Sep 20, 2005 11:56 pm

And it was during this time of massive money making that the pilots had the "United Plus" campaign going, to get the best contract of any airline pilots in the US. And rightfully so, the company had money coming out their ears. It worked, was a good deal while it lasted I suppose.

DeltaGuy
"The cockpit, what is it?" "It's the little room in the front of the plane where the pilot sits, but that's not importan
 
ATLFlyer323
Posts: 487
Joined: Sun Jan 16, 2005 2:01 am

RE: Better Times At Delta

Wed Sep 21, 2005 12:01 am

Everything in life has a cycle. Companies will always have their golden days and always there not so golden days. The strength of a company depends on the ability of the company to take the not so golden days and make them golden again. The same thing can go with economies and even countries. Some will make it through the cycle while others will not. I bet you sooner or later you will see SouthWest in financial trouble, I'm not saying this is going to be any time soon but non the less, if you look at history everything that flourishes will also have it's recessions.
Just my  twocents 
~Brandon
Everyday, the fluffy temptation of wheat!
 
ptcflyer
Posts: 93
Joined: Fri Apr 13, 2001 12:03 pm

RE: Better Times At Delta

Wed Sep 21, 2005 12:31 am

It is a shame that Delta (Management, Employees and Stakeholders) did not recognize the "boom times" and save more money for the "hard times". The leadership bought up their contract carriers for billions... bought back stock...built a new, fancy underutilized terminal in Boston... and funded a huge capital project to launch a new branded carrier ... "SONG"... and delayed confronting the pilots unions for wages that have since been proven unsustainable.

Meanwhile, the airline failed to innovate in customer service, cabin features and passenger comfort for the bulk of their Delta mainline service. At a time of economic uncertainty, the marketing team at Delta fiddled with their frequent flyer program driving away a significant number of loyal higher-revenue flyers. They did do a good job of implementing new, labor saving technology for booking, ticketing, and boarding. Those investments, however, have been proven to be a "me-too" for the industry.

High oil prices, potential terrorist attacks, SARS-like viruses, economic slow-downs... should always be anticipated ... and represent "rainy days" that Delta could have saved for.

Perhaps the circumstances that the airlines find themselves in is a perfect storm that is unsurvivable... but clearly, between 1998 and 2005... Delta and its stakeholders made many bad decisions without the imagination of what kind of "rainy days" they should have been preparing for.

Hence, a major restructuring is in the works... at the cost to the shareholders, debt holders, employees, and surrounding communities that support Delta.

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