panamair
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Delta Reports Q1 2012 Results

Wed Apr 25, 2012 11:49 am

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]
 
PSU.DTW.SCE
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RE: Delta Reports Q1 2012 Results

Wed Apr 25, 2012 12:21 pm

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.
 
NWAESC
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RE: Delta Reports Q1 2012 Results

Wed Apr 25, 2012 12:27 pm

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."
 
Cubsrule
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RE: Delta Reports Q1 2012 Results

Wed Apr 25, 2012 12:28 pm

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
 
PSU.DTW.SCE
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RE: Delta Reports Q1 2012 Results

Wed Apr 25, 2012 12:56 pm

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.
 
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yellowtail
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RE: Delta Reports Q1 2012 Results

Wed Apr 25, 2012 1:15 pm

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.
 
usairways85
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RE: Delta Reports Q1 2012 Results

Wed Apr 25, 2012 1:41 pm

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.
 
clemsonaj
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RE: Delta Reports Q1 2012 Results

Wed Apr 25, 2012 2:44 pm

Anyone catch the first part of the conference call? I have tuned in during the Q&A section.
 
threeifbyair
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RE: Delta Reports Q1 2012 Results

Wed Apr 25, 2012 3:25 pm

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.
 
panamair
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RE: Delta Reports Q1 2012 Results

Wed Apr 25, 2012 3:37 pm

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
 
stlgph
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RE: Delta Reports Q1 2012 Results

Wed Apr 25, 2012 4:01 pm

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
 
PSU.DTW.SCE
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RE: Delta Reports Q1 2012 Results

Wed Apr 25, 2012 4:13 pm

Where there any questions on the WN/FL 717 rumor? (Even though we already know the "no comment" response)
 
airtechy
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RE: Delta Reports Q1 2012 Results

Wed Apr 25, 2012 9:14 pm

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.  
 
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yellowtail
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RE: Delta Reports Q1 2012 Results

Wed Apr 25, 2012 9:53 pm

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.
 
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EA CO AS
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RE: Delta Reports Q1 2012 Results

Thu Apr 26, 2012 1:13 am

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

Comments made here are my own and are not intended to represent the official position of Alaska Air Group
 
PIEAvantiP180
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RE: Delta Reports Q1 2012 Results

Thu Apr 26, 2012 4:16 am

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.