User avatar
coronado
Posts: 1141
Joined: Sat Jun 26, 1999 9:42 am

Delta: Stellar Q3 2012 Results

Tue Oct 02, 2012 6:57 pm

The 8K Delta filed with the SEC today includes some indications of a phenomenal 3rd quarter.
For the full 8K which summarizes September results but more importantly gives some strong hints of what the Q3 2012 numbers will reflect are available for download at:
http://phx.corporate-ir.net/phoenix.zhtml?c=71481&p=irol-sec

Guidance September Quarter 2012:
Operating margin 10 - 11%
Cargo and other revenue $1.2 billion
Fuel price per gallon, adjusted $3.15
Profit sharing expense $175 million
Non-operating expense $260 million
Capital expenditures $400 – 450 million
Interestingly also they expect a mark to mark adjustment on fuel hedges of about PLUS $450mm which basically wipes ot the MINUS $500mm mark to mark adjustment for Q2 2012.
That is really a strong indication of how volatile the fuel environment has been in the last 6 months.
More Interestingly they are already ascribing some of the current month Sept cost of fuel as benefiting from Delta's new fuel supply program, short-speak for the start up of the Trainer refinery.

Can't overlook a September completion factor of 99.8% and on time index of 89.4%.
The entire Delta team seems to be working very seriously without a lot of fanfare on getting the job done.
Maybe a new motto is in order as tag on to Delta Climbing: If you have to positively absolutely get there, and also get there on time, Fly Delta Jets! (credit to fedex for the inspiration)
The Original Coronado: First CV jet flights RG CV 990 July 1965; DL CV 880 July 1965; Spantax CV990 Feb 1973
 
deltadc9
Posts: 2788
Joined: Fri Apr 14, 2006 10:00 pm

RE: Delta: Stellar Q3 2012 Results

Tue Oct 02, 2012 7:10 pm

Thanks for that, does anyone remember when Delta was year after year the only really profitable airline? I am starting to wonder if those days have returned with the refinery, the conservative approach to fleet managment, the service qualtiy improvments and other good signs like miles that don't expire.

I am actually thinking about getting back into Delta's common stock.
Dont take life too seriously because you will never get out of it alive - Bugs Bunny
 
Flighty
Posts: 7715
Joined: Thu Apr 05, 2007 3:07 am

RE: Delta: Stellar Q3 2012 Results

Tue Oct 02, 2012 7:16 pm

Remember, Delta is a couple years further along in the merger process than UA is. Of course, industry consolidation will result in big profits for carriers and higher costs to consumers. This is what we would expect. Delta ought to be making real money now, and they are.
 
User avatar
DeltaMD90
Posts: 8245
Joined: Tue Apr 15, 2008 11:25 pm

RE: Delta: Stellar Q3 2012 Results

Tue Oct 02, 2012 11:42 pm

Quoting Flighty (Reply 2):
Remember, Delta is a couple years further along in the merger process than UA is.

This is true, but it is indeed notable how well DL pulled the merger off and the decisions they've been making lately. Not saying UA is screwing up royally, I think DL just played their cards excellently.

I remember reading posts on this board from 2005 about how much DL sucked, and they really did. I'm so glad they turned their game around 
Ironically I have never flown a Delta MD-90 :)
 
NWADTWE16
Posts: 242
Joined: Fri Jun 29, 2012 5:12 am

RE: Delta: Stellar Q3 2012 Results

Tue Oct 02, 2012 11:56 pm

Great news for DL and all the thousands of former NWA employees who are now helping to make this merged carrier into a great one!
 
mah584jr
Posts: 422
Joined: Thu Mar 23, 2006 2:35 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 12:22 am

Had a really great experience flying Delta recently. I think their first class fares as of late are very reasonable and the F.A's provided excellent service. A tip of the hat to all at Delta.

-mah584jr
 
User avatar
mayor
Posts: 6188
Joined: Sun Mar 09, 2008 3:58 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 2:25 am

Quoting deltadc9 (Reply 1):
Thanks for that, does anyone remember when Delta was year after year the only really profitable airline? I am starting to wonder if those days have returned with the refinery, the conservative approach to fleet managment, the service qualtiy improvments and other good signs like miles that don't expire.

Yes, I do......most of the years that I worked at DL, in fact.
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
 
OOer
Posts: 923
Joined: Thu Oct 13, 2005 2:10 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 2:37 am

Of course your financials will shine when you have some of the lowest labor costs in the industry. I mean come on...who else provides their employees health plans with the lowest deductible available being $1,150 for individual coverage?

Delta people are giving their company their best and the results are shown in the 99.8% completion factor and 89.4% on-time index. Now if only their company would reward them fairly...but I won't hold my breath.
 
User avatar
mayor
Posts: 6188
Joined: Sun Mar 09, 2008 3:58 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 2:43 am

Quoting OOer (Reply 7):
Now if only their company would reward them fairly...but I won't hold my breath.

Ever heard of profit sharing??
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
 
User avatar
fanoftristars
Posts: 1544
Joined: Mon Jul 17, 2000 9:03 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 2:43 am

Quoting OOer (Reply 7):
who else provides their employees health plans with the lowest deductible available being $1,150 for individual coverage?

Just curious, what is the portion that you pay monthly for that type of coverage?
"FLY DELTA JETS"
 
User avatar
DeltaMD90
Posts: 8245
Joined: Tue Apr 15, 2008 11:25 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 2:44 am

Quoting OOer (Reply 7):
Now if only their company would reward them fairly...but I won't hold my breath.

2 words: profit sharing  

Most the DL employees I know (not just pilots) are pretty pleased with DL
Ironically I have never flown a Delta MD-90 :)
 
StuckInCA
Posts: 1618
Joined: Wed Oct 19, 2005 12:55 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 2:47 am

I like a lot of the things Delta is doing lately (as a passenger), but I'm pretty leary of them financially since reading of their smoke and mirrors approach of padding their financials by having wildly inflated estimates of returns on pension assumptions. I hope it doesn't come back to bite them - or that the information is misleading.
 
ericaasen
Posts: 81
Joined: Sun Jun 06, 2010 5:39 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 2:55 am

Quoting OOer (Reply 7):
Of course your financials will shine when you have some of the lowest labor costs in the industry. I mean come on...who else provides their employees health plans with the lowest deductible available being $1,150 for individual coverage?

Of which you only actually have to pay $650. Since the $500 you get every year in the HRA can be used to help pay your deductible. If you don't use all of your $500 it's rolled over to the next year so you'd have to only pay $150 in year two, and $0 in year three and beyond. Which isn't that bad if you ask me.
 
OOer
Posts: 923
Joined: Thu Oct 13, 2005 2:10 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 3:30 am

Quoting ericaasen (Reply 12):
Of which you only actually have to pay $650. Since the $500 you get every year in the HRA can be used to help pay your deductible. If you don't use all of your $500 it's rolled over to the next year so you'd have to only pay $150 in year two, and $0 in year three and beyond. Which isn't that bad if you ask me.

Still a $650 out of your pocket...and the annual max is $3,000. That "$500" will be reduced in 2014.

Quoting fanoftristars (Reply 9):
Just curious, what is the portion that you pay monthly for that type of coverage?

For an active employee it's $86, for a retiree it's around $790.

Quoting DeltaMD90 (Reply 10):
2 words: profit sharing  

Which in 2013 is being reduced by 33%!!!!!! From 15% of profits to 10% of profits.
 
User avatar
mayor
Posts: 6188
Joined: Sun Mar 09, 2008 3:58 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 3:31 am

Quoting StuckInCA (Reply 11):
I hope it doesn't come back to bite them - or that the information is misleading.

I think it's the latter......if it's the article I'm thinking about, it was only brought to light by ONE blogger and there was so much other misleading info in what he said, that his credibility was severely strained, in my opinion.
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
 
MSPNWA
Posts: 1810
Joined: Thu Apr 23, 2009 2:48 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 3:45 am

Airlines are going to post great Q3 numbers. Nothing happened to slow them down. It will be interesting again to see all the results.

Quoting DeltaMD90 (Reply 10):
2 words: profit sharing

Which won't go to the employees who really need it (DCI). Without them, Delta doesn't have a profitable airline.

I'm sorry, but to me DL's profit sharing system is a sham in the current airline business model. It's a fine idea if everyone that helped with the profit shared in it. Morally I couldn't have a system that rewards only a percentage of the contributors.
 
User avatar
DeltaMD90
Posts: 8245
Joined: Tue Apr 15, 2008 11:25 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 3:48 am

Quoting MSPNWA (Reply 15):
Which won't go to the employees who really need it (DCI). Without them, Delta doesn't have a profitable airline.

Delta is Delta. There are a lot of things that allow Delta to be responsible (like airports) but different payroll
Ironically I have never flown a Delta MD-90 :)
 
User avatar
mayor
Posts: 6188
Joined: Sun Mar 09, 2008 3:58 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 3:56 am

Quoting MSPNWA (Reply 15):

I'm sorry, but to me DL's profit sharing system is a sham in the current airline business model. It's a fine idea if everyone that helped with the profit shared in it. Morally I couldn't have a system that rewards only a percentage of the contributors.

Then the companies that those people actually work for, the contractors, are the ones that should be sharing THEIR profits with their employees. I suppose, in your eyes, the DL employees have done nothing to earn that profit sharing.....that it's ALL the DCI carriers that are turning the profits? That DL should pay some of its profits to people that don't even, legally, work for them?
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
 
OOer
Posts: 923
Joined: Thu Oct 13, 2005 2:10 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 4:19 am

Quoting MSPNWA (Reply 15):
Which won't go to the employees who really need it (DCI). Without them, Delta doesn't have a profitable airline.

I couldn't disagree with you more. Delta and the DCI carrier sign a contract and the DCI carrier provides Delta a service. This contract has a margin for profit for the DCI carrier. You want profit sharing...you should get it from your DCI carrier. It's like saying the workers of a utility company should get profit sharing from all the companies that use electricity...because without power they couldn't make a profit.
 
FlyASAGuy2005
Posts: 3965
Joined: Sun Sep 23, 2007 4:55 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 4:30 am

Quoting OOer (Reply 13):
Which in 2013 is being reduced by 33%!!!!!! From 15% of profits to 10% of profits.

That's only on the first $1B or whatever it is. It'st still whatever the rate is now after the threshold. And just to be clear, this is what the employees wanted. They wanted more pay in their pocket and less of it being gambled on what Delta may or may not make during the year. Delta above and below wing employees (plus F/As), come next year will be the highest paid of all majors minus WN. Please tell the whole story.

Quoting MSPNWA (Reply 15):
I'm sorry, but to me DL's profit sharing system is a sham in the current airline business model. It's a fine idea if everyone that helped with the profit shared in it. Morally I couldn't have a system that rewards only a percentage of the contributors.

Ev has had their own profit sharing plan for years...nothing to do with DL. They have their own bottom line.

Just an example...
What gets measured gets done.
 
gaystudpilot
Posts: 155
Joined: Sat Dec 08, 2007 10:55 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 4:32 am

RE: Financial performance

1) How is DL doing with "Win New York"? How is winning measured?

2) How is DL doing with "Monetize First Class"?
 
FlyASAGuy2005
Posts: 3965
Joined: Sun Sep 23, 2007 4:55 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 4:46 am

Quoting gaystudpilot (Reply 20):
1) How is DL doing with "Win New York"? How is winning measured?

"Winning In NYC" Basically being the premiere NYC airline (as far as I know)

According to all statements made since the slot swap and quoting Ed Bastian; LGA is doing "swimmingly well".
-Corporate contracts are up.
-FF base has grown quite a few percentage points. In the last investor presentation given a couple weeks ago, they've seen concrete evidence that corporate traffic (premium traffic in general) is deflecting from AA. Or is at least giving DL business they didn't have before.
-The D/C connector bridge is on track
-The US Airways club on C was recently reopened as a fully renovated SkyClub. Currently building out the second club on D and will measure about 10,000 sq.ft.; one of the largest in the system.
-Delta Shuttle is all DCI. Costs on the routes have gone down quite a bit due to the lower costs of CP/S5 and the E-Jets
-JFK T4 is exactly on schedule and will be open and ready for business next year.

Quoting gaystudpilot (Reply 20):


2) How is DL doing with "Monetize First Class"?

First Class up sells are the name of the game. If they can get someone to pay for it they will. That's something ongoing.
What gets measured gets done.
 
PIEAvantiP180
Posts: 486
Joined: Tue Sep 15, 2009 6:04 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 5:21 am

The profit sharing check however big or small someone may think it is is better then 0$. And a 0$ profit sharing check is exactly what majority of employees get in this industry. DL needs to ring out every dollar worth of profit while it can before another disaster man made our natural occurs, not saying it will happen but it could. I see the reactions when DL announces billion + profit for the quarter and the questions come out why this or that more for the employees. But the simple truth of the reality is that it can't happen like that, if DL prices it's self to high it will lose customers and money to the carriers that have lower labor costs and BK here we come again. It's not like this money will go to bonuses and profit sharing for the stock holders and the owners of the company. DL still has 12B$ of debt to pay off, it needs hundreds of millions every year on plane investments to keep the interiors modern and attractive for passengers to fly on so they don't go to the competition, and DL will still need tens of billions of dollars to replace hundreds and hundreds of airplanes coming up on retirement in the next decade. I have read the pension article Major is taking about and how ever misleading it is and factually wrong there is still the fact that the pension is still billions of dollars underfunded, how many billions I don't know but if it's 5, 10, 15, or 20+ billions like the article claims is still a substantial amount of money. So before you start saying DL should give more money to this and that look at where it needs to go on top of employee salaries.
 
NWAESC
Posts: 859
Joined: Thu Aug 30, 2007 1:02 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 11:40 am

Quoting fanoftristars (Reply 9):
Just curious, what is the portion that you pay monthly for that type of coverage?
Quoting OOer (Reply 13):
For an active employee it's $86, for a retiree it's around $790.

Family coverage will be $247. The OOA option has higher premiums for both.

Both deductibles and coinsurance max will see significant increases for the plan OOer is discussing.

Quoting FlyASAGuy2005 (Reply 19):
That's only on the first $1B or whatever it is. It'st still whatever the rate is now after the threshold. And just to be clear, this is what the employees wanted. They wanted more pay in their pocket and less of it being gambled on what Delta may or may not make during the year.

I wasn't asked, but would've voted for it. I prefer my $$ in my hands now, as opposed to waiting on something that may or may not occur, and a distribution formula that changes annually.

Quoting FlyASAGuy2005 (Reply 19):
Ev has had their own profit sharing plan for years

I'm curious about their plan. Any info you can provide?
"Nothing ever happens here, " I said. "I just wait."
 
diverdave
Posts: 453
Joined: Sun Mar 07, 2010 1:00 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 12:15 pm

Quoting deltadc9 (Reply 1):
I am actually thinking about getting back into Delta's common stock.

Delta is doing well, but I would be leery of their huge pension plan deficit. It's over $11 billion.

http://www.pionline.com/article/20120725/DAILYREG/120729923

Quoting OOer (Reply 13):
Still a $650 out of your pocket...and the annual max is $3,000. That "$500" will be reduced in 2014.

  I work for a large defense contractor and have a $500 deductible. We should get SPEEA in here to organize the place.  

David
 
OOer
Posts: 923
Joined: Thu Oct 13, 2005 2:10 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 1:01 pm

Quoting FlyASAGuy2005 (Reply 19):
Delta above and below wing employees (plus F/As), come next year will be the highest paid of all majors minus WN. Please tell the whole story.

Really?

Continental, Southwest, Alaska, and Hawaiian all still have a better benefits package.


It can also be argued that United flight attendants also have a better overall package. Much better health insurance options including an HMO option free of charge for the entire family (on premium alone that's almost $4,000 per year in savings), higher profit sharing now that Delta has reduced theirs, night pay which Delta doesn't have, higher purser pay, and substantially better work rules for crewmembers.

It's kind of like someone bragging about making $15 per hour with 0 benefits when everyone else is making $14 per hours with medical and retirement. Make sense?
 
StuckInCA
Posts: 1618
Joined: Wed Oct 19, 2005 12:55 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 2:22 pm

Quoting OOer (Reply 13):
Still a $650 out of your pocket...and the annual max is $3,000

Ugh. I work for a well regarded tech company and have it worse than that. Things aren't like they used to be.

Quoting mayor (Reply 14):
I think it's the latter......if it's the article I'm thinking about, it was only brought to light by ONE blogger and there was so much other misleading info in what he said, that his credibility was severely strained, in my opinion.

I hope that's true. I'm not that astute with those sorts of financials.
 
NWAROOSTER
Posts: 1031
Joined: Mon Feb 14, 2005 2:29 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 2:43 pm

Quoting OOer (Reply 13):

Quoting fanoftristars (Reply 9):
Just curious, what is the portion that you pay monthly for that type of coverage?

For an active employee it's $86, for a retiree it's around $790.
Quoting OOer (Reply 7):
Of course your financials will shine when you have some of the lowest labor costs in the industry. I mean come on...who else provides their employees health plans with the lowest deductible available being $1,150 for individual coverage?

I am a retired Northwest Airlines employee. Delta pays my pension.
However, I get my medical insurance through my wife's former employer. There is NO monthly premium and an annual benefit deduction of $500 for each of us. No strings attached. Beats Delta hands down. If I had taken Northwest's medical insurance for retirees it would have be $275 a month with prescription medications for each of us. I doubt if Delta is still honoring that.   
Procrastination Is The Theft Of Time.......
 
OOer
Posts: 923
Joined: Thu Oct 13, 2005 2:10 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 2:48 pm

Quoting NWAROOSTER (Reply 27):
If I had taken Northwest's medical insurance for retirees it would have be $275 a month with prescription medications for each of us. I doubt if Delta is still honoring that.   

That was a contractual provision and since the CBA is no longer i effect that is also gone. The premium for retirees is now $790 per month...a 287% increase.
 
User avatar
b727fa
Posts: 1043
Joined: Sun Jun 12, 2011 8:21 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 2:54 pm

Quoting OOer (Reply 13):
Which in 2013 is being reduced by 33%!!!!!! From 15% of profits to 10% of profits.

That's not accurate and you know it. You need to tell the whole story to retain credibility.

Quoting MSPNWA (Reply 15):
Which won't go to the employees who really need it (DCI). Without them, Delta doesn't have a profitable airline.

That's something to take up with YOUR DCI company...you have your own profit margins.

Quoting NWAESC (Reply 23):
I wasn't asked, but would've voted for it. I prefer my $$ in my hands now, as opposed to waiting on something that may or may not occur, and a distribution formula that changes annually.

If you work for Delta you had the opportunity to make your voice heard. However, it worked out well for you as well as I, too, would rather have cash in hand each month than the gamble that we would or wouldn't make a payout!

Quoting StuckInCA (Reply 26):
Quoting OOer (Reply 13):
Still a $650 out of your pocket...and the annual max is $3,000

I'm pretty pleased with my ins. I had a high deductible this year, but even still, with my surgery, I knew EXACTLY my total out-of-pocket (and could budget for it) and I have the option to "trade down or up" each year; not a one size fits all!

Quoting NWAESC (Reply 23):
Both deductibles and coinsurance max will see significant increases for the plan OOer is discussing.

Why are we discussing "assumed" numbers for 2014 when we're only now getting ready for 2013 open enrollment?

Quoting PIEAvantiP180 (Reply 22):
So before you start saying DL should give more money to this and that look at where it needs to go on top of employee salaries.

Thank you PIE! DL is a business; not a charity--for pax or employees. There are MANY "customers" and "share holders" per se with dogs in this fight. I could welcome more $ in my monthly check; I know few who'd disagree. However, if that dime an hour more could affect fleet modernization, or lower premiums, or debt relief, I'm paying more than the value of that dime!
OOer: are you a DL emp? You seem to have some "info" but it also seems quite skewed; and frankly doesn't move the Company forward. It carries some of the harsh overtones of the people who think DL (or, I'd guess any company that doesn't do what you want) is horrible and a bad place to work.

Delta owes me a safe place to work, a living wage and professional development. I owe Delta safe, professional performance, timeliness and loyalty. It's a two way street.
My comments/opinions are my own and are not to be construed as the opinion(s) of my employer.
 
OOer
Posts: 923
Joined: Thu Oct 13, 2005 2:10 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 3:03 pm

Quoting B727FA (Reply 29):
That's not accurate and you know it. You need to tell the whole story to retain credibility.

This is the whole story. The planned reduction in profit sharing first surfaced during ALPA negotiations. Pilots received an immediate 4% raise followed by an 8% raise on Jan 1st. To offset part of that cost the profit sharing was trimmed and other employees were given a lame reason for it plus a raise substantially smaller than what ALPA received.

Quoting B727FA (Reply 29):
I'm pretty pleased with my ins. I had a high deductible this year, but even still, with my surgery, I knew EXACTLY my total out-of-pocket (and could budget for it) and I have the option to "trade down or up" each year; not a one size fits all!

My example used the plan with the "lowest" deductible. If you want to trade up to one of the plans with a $3,000 deductible then be my guest.

Quoting B727FA (Reply 29):
Thank you PIE! DL is a business; not a charity--for pax or employees.

You mean the same employees that BOUGHT Delta a 767, and the same employees who are making 40% less today than they were 15 years ago (adjusted for inflation)?
 
WA707atMSP
Posts: 1483
Joined: Sun Oct 08, 2006 8:16 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 3:05 pm

Quoting DeltaMD90 (Reply 3):
Quoting Flighty (Reply 2):
Remember, Delta is a couple years further along in the merger process than UA is.

This is true, but it is indeed notable how well DL pulled the merger off and the decisions they've been making lately.

Even though I'm definitely not one of the DL fanboys, I do not feel DL gets the credit they deserve on ANet for how well the merger has gone.

DL was able to merge a non-union airline with a heavily unionized carrier with only minimal drama. The two airlines had only one aircraft type in common, the 757, but they were able to successfully re deploy aircraft around the merged system to make the best use of their capabilities (777s in DTW, MD-90s in MSP, Airbii in SLC, etc).

DL and NW truly are one airline now, at a time when pre-merger CO employees still identify themselves as such on aircraft public address systems, and US and HP seniority lists have yet to be combined.

I think that even five years from now, UA/CO will not be as completely integrated as DL is, and I shudder to think what a disaster US will be, especially if it goes from US+HP to US+HP+AA. This will enable DL to provide much better returns to their employees and shareholders than UA/CO and US/HP or US/HP/AA.
Seaholm Maples are #1!
 
NWAESC
Posts: 859
Joined: Thu Aug 30, 2007 1:02 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 4:01 pm

Quoting B727FA (Reply 29):
Why are we discussing "assumed" numbers for 2014 when we're only now getting ready for 2013 open enrollment?

The insurance numbers I posted are not "assumed." They're the 2013 rates.
"Nothing ever happens here, " I said. "I just wait."
 
Flighty
Posts: 7715
Joined: Thu Apr 05, 2007 3:07 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 4:19 pm

Quoting WA707atMSP (Reply 31):
DL and NW truly are one airline now, at a time when pre-merger CO employees still identify themselves as such on aircraft public address systems, and US and HP seniority lists have yet to be combined.

DL has done the merger well. Nobody doubts it. It took 10 years really since the dance began. Even if UA and CO do it 50% less well, it will still be a fully integrated, highly profitable company. I am just suggesting it is unfair to contrast them at this point. If anything, UA and CO's efficiency gains from network rebalancing will be even greater than Delta's.

HP and US.. sigh... yes they have 2 crew groups, but they have far fewer fleets than the above 2 airlines, so overall they are as efficient as any carrier.

So yeah, good going, Delta. Looking good, honestly.
 
User avatar
b727fa
Posts: 1043
Joined: Sun Jun 12, 2011 8:21 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 4:54 pm

Quoting NWAESC (Reply 32):
Quoting B727FA (Reply 29):
Why are we discussing "assumed" numbers for 2014 when we're only now getting ready for 2013 open enrollment?

The insurance numbers I posted are not "assumed." They're the 2013 rates.

I wasn't quoting you...

Quoting OOer (Reply 13):
Still a $650 out of your pocket...and the annual max is $3,000. That "$500" will be reduced in 2014.

This was my ref.
My comments/opinions are my own and are not to be construed as the opinion(s) of my employer.
 
User avatar
coronado
Posts: 1141
Joined: Sat Jun 26, 1999 9:42 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 5:09 pm

175million in estimated profit sharing to employees generated just this one most recent quarter is not exactly chopped liver.
If the old compensation model was recognizeably not the most efficient, the profit sharing payouts from Delta are at a level where they should get the attention of employees.

When you look over the quarterly revenue estimates it is quite obvious that DCI is shrinking about 10% per year whereas mainline is staying even. Pretty much all of the overall reduction in Delta RPM's is coming from the Connection side.. With the 50 seaters drawdown over the next 4-6 years DCI will probably only end up only represent about 8% of overall RPM's compared to barely over 12% today. In fact I was surprised to realize that DCI RPM expressed as a percentage of overall RPM was already that low, I was still under the mistaken impression it was upwards of 15%.
The Original Coronado: First CV jet flights RG CV 990 July 1965; DL CV 880 July 1965; Spantax CV990 Feb 1973
 
OOer
Posts: 923
Joined: Thu Oct 13, 2005 2:10 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 6:44 pm

Quoting Coronado (Reply 35):
175million in estimated profit sharing to employees generated just this one most recent quarter is not exactly chopped liver.

Divide that by about 60,000 employees and you get a much smaller number. Then, take into consideration that that number is given out based on your earnings with the company.

So...

For example a 3rd year first officer on the DC9 will take home twice as much as a flight attendant that's been around for 40 years, lost her pension, and bought Delta a 767. That number becomes "triple" the amount (or more) of a ramper that's also been around for decades and also saw his pension vanish and contributed to buying Delta a 767.

A 3rd year flight attendant will take home 1/4 what a 3rd year first officer will in profit sharing...just to put it in comparison.
 
toobz
Posts: 633
Joined: Mon Jan 18, 2010 6:33 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 7:21 pm

OOer...ugh. Seems u are not happy with DL..time to look for something else maybe?? In case you haven't noticed most corporations have downgraded their healthcare insurance. Yeah it sucks but as we say...get the f@*k over it dude. It's a new world  

I for one am very happy to see these results. Still a long way to go! Congrats to all DL employees for a job well done
 
PPVRA
Posts: 7878
Joined: Fri Nov 12, 2004 7:48 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 8:04 pm

Quoting Coronado (Thread starter):
That is really a strong indication of how volatile the fuel environment has been in the last 6 months.

That's how hedging works. Sometimes you win, sometimes the bank wins. If you are doing it right in the end it's a wash.

The point of this whole exercise is to deal with price volatility, not to starting making money on the side.
"If goods do not cross borders, soldiers will" - Frederic Bastiat
 
User avatar
STT757
Posts: 13222
Joined: Tue Mar 28, 2000 1:14 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 8:31 pm

Quoting WA707atMSP (Reply 31):
CO employees still identify themselves as such on aircraft public address systems,

What flight were you on?
Eastern Air lines flt # 701, EWR-MCO Boeing 757
 
OOer
Posts: 923
Joined: Thu Oct 13, 2005 2:10 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 9:05 pm

Quoting toobz (Reply 37):
In case you haven't noticed most corporations have downgraded their healthcare insurance. Yeah it sucks but as we say...get the f@*k over it dude. It's a new world

I don't know of any profitable airline that has made their employees health benefits worse (in the US) in the past 6-7 years...except Delta who got rid of their PPO option in 2008 and now only has high deductible plans. Those high deductible plans are getting worse in 2013 at a time when the employees made it possible for Delta to be the most profitable US airline.

Even AA's employees bankruptcy health insurance is better than what Delta employees get. Now that's sad...
 
StuckInCA
Posts: 1618
Joined: Wed Oct 19, 2005 12:55 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 9:27 pm

Quoting OOer (Reply 40):
I don't know of any profitable airline that has made their employees health benefits worse (in the US) in the past 6-7 years...except Delta who got rid of their PPO option in 2008 and now only has high deductible plans. Those high deductible plans are getting worse in 2013 at a time when the employees made it possible for Delta to be the most profitable US airline.

Broaden your horizon to something outside airlines. Highly successful, profitable companies that people lust for jobs with do not typically have better insurance than you are describing. Companies that haven't been bankrupt, lost money for more than a quarter and who hold no debt.
 
bobnwa
Posts: 4471
Joined: Fri Dec 22, 2000 12:10 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 10:00 pm

Quoting OOer (Reply 40):
Those high deductible plans are getting worse in 2013 at a time when the employees made it possible for Delta to be the most profitable US airline.

Would you not say that managements plans and follow thru on that plan has made Delta profitable just as much as the employees An example woud be the oilrefinery or the LGA/DCA swap
 
bobnwa
Posts: 4471
Joined: Fri Dec 22, 2000 12:10 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 10:01 pm

Quoting OOer (Reply 40):
Those high deductible plans are getting worse in 2013 at a time when the employees made it possible for Delta to be the most profitable US airline.

Would you not say that managements plans and follow thru on that plan has made Delta profitable just as much as the employees An example woud be the oil refinery or the LGA/DCA swap
 
User avatar
DeltaMD90
Posts: 8245
Joined: Tue Apr 15, 2008 11:25 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 10:06 pm

Quoting OOer (Reply 36):
For example a 3rd year first officer on the DC9 will take home twice as much as a flight attendant that's been around for 40 years, lost her pension, and bought Delta a 767. That number becomes "triple" the amount (or more) of a ramper that's also been around for decades and also saw his pension vanish and contributed to buying Delta a 767.

Um, not trying to be harsh, but pilots are higher paid for a reason. You don't think that 3rd year first officers on the DC9 should make less than a F/A that has been around for 40 years, do you?

I'd try and be more positive. Not sure if you work for DL or not, but I'd gladly work for them as a pilot even with half the pay. They're a good company with responsible management, good employees, and a proud history. I think DL employees should look around at the state of the other US majors and consider themselves lucky. They have a job, getting profit sharing, and their company isn't dive bombing. The 2nd paragraph is my personal opinion, but I feel pretty strongly about the first paragraph. I don't use the word "socialism" all the time to describe Democrats, but giving equal profit sharing is pretty much socialism IMO
Ironically I have never flown a Delta MD-90 :)
 
NWAESC
Posts: 859
Joined: Thu Aug 30, 2007 1:02 pm

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 10:07 pm

Quoting toobz (Reply 37):
In case you haven't noticed most corporations have downgraded their healthcare insurance. Yeah it sucks but as we say...get the f@*k over it dude. It's a new world

So, since everyone's insurance benefits are going in the wrong direction, it's okay that DL's do as well? That's quite a rationalization...
"Nothing ever happens here, " I said. "I just wait."
 
FlyASAGuy2005
Posts: 3965
Joined: Sun Sep 23, 2007 4:55 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 10:38 pm

Quoting OOer (Reply 25):
Really?

Continental, Southwest, Alaska, and Hawaiian all still have a better benefits package.

Please re-read what I said.

BTW, quantify HOW their full package is better...

Quoting NWAESC (Reply 45):
So, since everyone's insurance benefits are going in the wrong direction, it's okay that DL's do as well? That's quite a rationalization...

I dont think thats what anyone's saying. It's just economic reality. Some, however, are still stuck in the pre 9/11 age.
What gets measured gets done.
 
dtw9
Posts: 895
Joined: Mon Sep 22, 2003 10:09 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 11:06 pm

Quoting NWAESC (Reply 45):
So, since everyone's insurance benefits are going in the wrong direction, it's okay that DL's do as well? That's quite a rationalization...

It's not rationalization, it's reality. Delta has more than 10 Billion in debt. They have a pension fund that is only 40.4% funded. How do you expect them to pay all of this debt off if they keep giving away the store to the employees. If you think it's hard for you now, just wait until this Country decides to pay off the 14.5 trillion dollar debt it has. The days of writing checks with money you don't have are over.It's called fiscal responsibility. Home owners are doing it, Corporations are doing it. Now it's time our Government did it.
 
airtechy
Posts: 550
Joined: Sun Dec 24, 2006 7:35 am

RE: Delta: Stellar Q3 2012 Results

Wed Oct 03, 2012 11:10 pm

My guess is that the vast majority of Delta people will be very happy with the profit sharing.....and well they should be as they were one of the major contributors to Delta's quarterly success.

The recent financial results from Delta show that it has great management considering the travel environment and the challenges that it presents. What's interesting to me is that they have managed to upgrade all or most of their longhaul fleet, pay down a substantial portion of the long term debt, acquire older aircraft that still represent great value, address the fuel expense by buying a refinery, and still provide great compensation and benefits to their employees.

Once the long term debt is paid down further, I'm sure that the interest gained there will allow for greater compensation. In the meantime everyone has a job and the customers are happy. I'm sure other airlines and their employees wish they were in as good a position for the future.  
 
NWAESC
Posts: 859
Joined: Thu Aug 30, 2007 1:02 pm

RE: Delta: Stellar Q3 2012 Results

Thu Oct 04, 2012 12:09 am

Quoting dtw9 (Reply 47):
. How do you expect them to pay all of this debt off if they keep giving away the store to the employees. If you think it's hard for you now, just wait until this Country decides to pay off the 14.5 trillion dollar debt it has. The days of writing checks with money you don't have are over.It's called fiscal responsibility.

Hey, maybe they should funnel those net profits into debt service instead of profit sharing. *That* would be fiscally responsible. Just a thought...
"Nothing ever happens here, " I said. "I just wait."