Zone1
Topic Author
Posts: 894
Joined: Sun Jan 09, 2005 4:47 am

Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 6:53 am

A slight disappointment after last month's net profit, but DL still made an operating profit of $60M for the month of August. They had revenue of $1.60B and operating expenses of $1.54B. Of those operating expenses, $431M went to jet fuel. Unrestricted cash was at $3B.

http://biz.yahoo.com/ap/060929/delta_bankruptcy.html?.v=4

Keep up the good work, DL!
/// U N I T E D
 
roseflyer
Posts: 9606
Joined: Fri Feb 13, 2004 9:34 am

RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 7:12 am

It's good to see that their finances are improving. It will be interesting to see how they deal with the slow fall and winter travel season since DL has many international routes that will be seasonally affected.
If you have never designed an airplane part before, let the real designers do the work!
 
Evan767
Posts: 2198
Joined: Wed Aug 24, 2005 10:52 am

RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 7:23 am

Let's see how October goes. It looks like gas prices have gone down one whole dollar here in Richmond.
The proper term is "on final" not "on finals" bud...
 
HVNandrew
Posts: 398
Joined: Tue Jan 31, 2006 1:05 am

RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 7:23 am

Interresting how things change... a few months ago when DL reported an operating profit with a net loss, it was major glee. Now, simply some subdued satisfaction.

Anyway, great job DL.  Smile
 
Zone1
Topic Author
Posts: 894
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RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 7:50 am

Quoting RoseFlyer (Reply 1):
It will be interesting to see how they deal with the slow fall and winter travel season since DL has many international routes that will be seasonally affected.

You're right, RoseFlyer. Most of the new international routes did fairly well this summer, but hopefully they won't bleed red ink for the winter travel season. If they can hold their own even before the ETOPS 757s come online, I think DL will be in a very strong position.
/// U N I T E D
 
N174UA
Posts: 860
Joined: Thu Jun 01, 2006 4:17 pm

RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 8:12 am

Quoting Zone1 (Reply 4):
Most of the new international routes did fairly well this summer

How many of those routes were on a seasonal-basis, i.e discontinued for the fall/winter?

I'd be curious to hear how JFK-TXL did this summer...  Wink
 
Evan767
Posts: 2198
Joined: Wed Aug 24, 2005 10:52 am

RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 8:29 am

Quoting HVNandrew (Reply 3):
Interresting how things change... a few months ago when DL reported an operating profit with a net loss, it was major glee. Now, simply some subdued satisfaction.

Anyway, great job DL.

That's a good way of looking at it Andrew.
The proper term is "on final" not "on finals" bud...
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 9:15 am

DL's operating profit margin was 4% for the month, down from better than 10% in July. August is always a weaker month than June or July because southern states go back to school earlier than northern states. DL shifted some of its extra int'l flying from ATL to JFK for the month of September but pulled down much of it.

Since several airlines issued guidance in August regarding weaker revenues, DL's near 13% improvement in RASM looks pretty good. CO is the only other airline that provides monthly RASM info and they were expecting a 6-7% improvement IIRC. There has also been alot of fare discounting this fall, indicating that fares might be a bit too high to keep flights at breakeven levels during the slow fall season.
 
N174UA
Posts: 860
Joined: Thu Jun 01, 2006 4:17 pm

RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 11:34 am

Quoting RwSEA (Reply 7):
From what I hear, it was totally break even. No profit, but no loss either

During the SUMMER....meaning DL will get killed on it during the winter. Hopefully for DL's sake it was a seasonal flight...  Yeah sure
 
cslusarc
Posts: 553
Joined: Wed May 04, 2005 2:29 pm

RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 12:32 pm

When do children in the US South go back to shool? I thought it was traditional that school started everywhere in the US and Canada on the Tuesday after Labor/Labour Day.
--cslusarc from YWG
 
HVNandrew
Posts: 398
Joined: Tue Jan 31, 2006 1:05 am

RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 12:36 pm

Quoting Cslusarc (Reply 10):
When do children in the US South go back to shool? I thought it was traditional that school started everywhere in the US and Canada on the Tuesday after Labor/Labour Day.

It hasn't been that way in the US for years... especially in the south. Almost all the schools in all parts of the country are back in by the week before labor day, with many of the southern school back in by August 15. Some of the Northeastern schools still go back after Labor Day, though.
 
DTWAGENT
Posts: 753
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RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 12:56 pm

Keep going DL. You will make it....

Chuck
 
User avatar
Aloha717200
Posts: 3739
Joined: Mon Aug 18, 2003 4:50 am

RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 3:08 pm

For an airline the size of Delta, $11 million isn't bad. Clearly they aren't as bad off as they used to be. Sounds like word of Delta's imminent demise was greatly exaggerated.

Which works great for me. More SLC spotting! Big grin
 
ArtieFufkin
Posts: 671
Joined: Wed May 17, 2006 2:26 pm

RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 3:53 pm

A let down for me. I expected better. I just compared the Aug. report to Jul. The costs were very much in line with one another. The only real diff was better revenue in July. That about was the sole reason for going from making 100 Mil to losing 10 Mil. (There was 1 mil in reorg expenses for Aug they didn't bother mentioning)

September should be worse revenue right? It the slowest Month of the Year?

Going forward the only thing in the pipeline I know of are DLX negotiations for lower rates. Possibly some gains to see from the end of fleet simplification. Every other cost program I know of is winding down in terms of results being reflected on the bottom line.
 
Delta787
Posts: 306
Joined: Mon May 01, 2006 8:13 am

RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 10:31 pm

Quoting N174UA (Reply 9):
During the SUMMER....meaning DL will get killed on it during the winter. Hopefully for DL's sake it was a seasonal flight...

Its already survived last years winter season. I expect that it will be able to do it again.
Fly Delta!
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 11:13 pm

Quoting Aloha717200 (Reply 13):
Which works great for me. More SLC spotting!

DL has some neat news coming for SLC soon!

Quoting ArtieFufkin (Reply 14):
September should be worse revenue right?

DL pulled down alot of capacity after Labor Day as did alot of other carriers. DL also ran the airline very aggressively during the summer which meant that some employees worked overtime and flew more than minimum hours which makes sense since the peak is fairly short lived.

Fuel prices have fallen quite a bit and will help airlines through this winter; jet fuel prices didn't begin to come down until much later in the year.

Finally, several airlines have provided guidance regarding reduced RASM growth going into the fall. DL has not and their August results show they continue to improve revenue at very comparable levels. DL probably will compare fairly favorably going into the fall if they can maintain revenue growth while cutting costs while other airlines are seeing decreased revenues.
 
CHIFLYGUY
Posts: 133
Joined: Mon Aug 14, 2006 10:14 pm

RE: Delta Reports August Numbers--$11M Loss

Sat Sep 30, 2006 11:50 pm

Let's not forget the terrorism scare that came out in August. AA estimated this caused them to lose $50 million in revenue. DL was probably less affected, but still took a revenue hit to some extent.
 
BMIFlyer
Posts: 8065
Joined: Mon Feb 23, 2004 7:11 am

RE: Delta Reports August Numbers--$11M Loss

Sun Oct 01, 2006 12:06 am

Good stuff there for DL. Nice to see they are making progress  Smile


Lee
Sometimes You Can't Make It On Your Own
 
ThePRGuy
Posts: 1833
Joined: Thu Aug 10, 2006 10:07 am

RE: Delta Reports August Numbers--$11M Loss

Sun Oct 01, 2006 1:45 am

Way to go for DL
My favourite US airline, glad to see they are weening themselves slowly out of the red  Smile
Thanks
PR
Heathrow has been described as the only building site to have its own airport.
 
aero0729
Posts: 75
Joined: Mon Jul 24, 2006 1:22 am

RE: Delta Reports August Numbers--$11M Loss

Sun Oct 01, 2006 2:22 am

Lets not forget without bankrupcy expeneses, Delta would be in the green by 30-40 million!
 
FiveMileFinal
Posts: 188
Joined: Mon Oct 31, 2005 3:17 pm

RE: Delta Reports August Numbers--$11M Loss

Sun Oct 01, 2006 3:05 am

Hey, I gave em $400 of my money in August, and I'd do it again. I missed the Widget. I'll use 'em for transcons for sure.
You goin'? We fly you dere! You been? We done already flew up in dere!
 
BNinMSY
Posts: 217
Joined: Wed Nov 23, 2005 12:19 pm

RE: Delta Reports August Numbers--$11M Loss

Sun Oct 01, 2006 3:27 am

All those new unnecessary uniforms and repainting of Song aircraft and those related expenses!
 
Zone1
Topic Author
Posts: 894
Joined: Sun Jan 09, 2005 4:47 am

RE: Delta Reports August Numbers--$11M Loss

Sun Oct 01, 2006 3:46 am

Quoting WorldTraveler (Reply 16):
DL has some neat news coming for SLC soon!

Let me guess...
SLC-CDG?

Quoting FiveMileFinal (Reply 21):
Hey, I gave em $400 of my money in August, and I'd do it again.

I just booked my tickets for Thanksgiving on DL. I got a reasonable price, but defiantly more than what I got for the last 3 years. It will be nice to fly them after flying United all summer. The interesting thing is that my flight back to IND on the Sunday after Thanksgiving is a 9000 flight number and a 757. It seems like they send some strange equipment to IND on the Sunday after Thanksgiving. Three years ago I was on a 767-200.
/// U N I T E D
 
freedom747
Posts: 104
Joined: Fri Aug 12, 2005 10:31 am

RE: Delta Reports August Numbers--$11M Loss

Sun Oct 01, 2006 4:36 am

They'll get things ironed out. The Delta Spirit within themselves is alive and well as ever, and I still feel the Spirit within me as I did when I was employed with the Big D.
 
panamair
Posts: 3774
Joined: Fri Oct 12, 2001 2:24 am

RE: Delta Reports August Numbers--$11M Loss

Sun Oct 01, 2006 6:07 am

Quoting ArtieFufkin (Reply 14):
A let down for me. I expected better. I just compared the Aug. report to Jul. The costs were very much in line with one another. The only real diff was better revenue in July. That about was the sole reason for going from making 100 Mil to losing 10 Mil. (There was 1 mil in reorg expenses for Aug they didn't bother mentioning)

September should be worse revenue right? It the slowest Month of the Year?

I agree it's somewhat disappointing and as you said, it was a revenue problem in August. The costs stayed pretty much the same as in July because DL was pretty much offering the same capacity. September revenue will be lower but then capacity was also lower so some of the costs will come down (including fuel). Even though operationally they have pretty much achieved most of the cuts except for the DCI component, there are other non-operating items that still have to be settled. Notice that there was a net loss because the interest expenses outweighed the operating profit; there are still debt items to be refinanced and renegotiated,etc., which should help lower some of the interest items. I also seem to recall CFO Ed Bastian saying that by the end of this year, they would have achieved approximately $2 billion of the targeted $3 billion in cost savings/revenue improvements. This means that there will continue to be some more cost saving/revenue improvement realization in 2007(e.g., the network restructuring and rebalancing of domestic vs. international is not done yet)
 
panamair
Posts: 3774
Joined: Fri Oct 12, 2001 2:24 am

RE: Delta Reports August Numbers--$11M Loss

Sun Oct 01, 2006 6:17 am

Quoting N174UA (Reply 9):
During the SUMMER....meaning DL will get killed on it during the winter. Hopefully for DL's sake it was a seasonal flight...

TXL, like many other European routes, suffer during the winter, and is reduced in frequency (to 5x or 4x weekly from daily). Looking at past winter's loads, TXL had its off days but didn't seem significantly worse than all others, e.g., NCE was pretty absymal during deep winter as well, and in fact, worse than TXL in terms of load factors in certain months. (And CO had some pretty low LFs on the EWR-TXL runs too - in fact, looking at the past 12 months' data, CO actually had worse LFs than DL in most months even though they flew a smaller airplane). Another thing, TXL is/has been very strong in June and July but weak in August (same as August 2005). September was actually much better than August (average of mid-80s for LFs with very good premium cabin traffic). In fact, while domestic loads drop quite a bit in September, transatlantic loads were actually quite robust, and in many markets, much better than August.
 
Zone1
Topic Author
Posts: 894
Joined: Sun Jan 09, 2005 4:47 am

RE: Delta Reports August Numbers--$11M Loss

Sun Oct 01, 2006 7:01 am

Quoting Panamair (Reply 25):
Even though operationally they have pretty much achieved most of the cuts except for the DCI component,

Are we going to see any RJ's being parked after the contract renegotiations? I'm kind of wondering why they haven't cut the amount of RJs flying.
/// U N I T E D
 
DAL767400ER
Posts: 5084
Joined: Wed Feb 09, 2005 2:47 am

RE: Delta Reports August Numbers--$11M Loss

Sun Oct 01, 2006 7:05 am

Quoting Zone1 (Reply 27):
Are we going to see any RJ's being parked after the contract renegotiations?

From what it looks like, RJs will be parked, but their total will not be reduced. It'll primarily mean that current 50-seat RJs are being replaced with 70-seat RJs. Not as good as being replaced by mainline, but nonetheless an improvement.
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: Delta Reports August Numbers--$11M Loss

Sun Oct 01, 2006 8:46 am

Quoting BNinMSY (Reply 22):
All those new unnecessary uniforms and repainting of Song aircraft and those related expenses!

Those uniform did wonders in improving DL employee morale. It was the best $X million DL spent.

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