JammyBritton27
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Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 11:55 am

Revenue of $12.5 billion was up 6.5% year-over-year.
Profit grew 39% to $1.4 billion and EPS grew 48% to $2.21. Adjusted EPS grew 32% to $2.35.
Total unit revenue, adjusted, increased 3.8% and CASM grew 14%.
Generated $5.2 billion of operating cash flow and $2.5 billion of free cash flow on a year-to-date basis, after investing $2.7 billion into the business, primarily for aircraft purchases and modifications.
Returned $497 million to shareholders.
For the September quarter, Delta expects EPS to come in the range of $2.10-2.40. Based on the strong first half performance, the company raised its full-year 2019 EPS guidance to a range of $6.75-7.25.

https://news.alphastreet.com/delta-air- ... s-q2-2019/
 
Atlwarrior
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 11:59 am

Great job Delta.
 
B757Forever
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 12:01 pm

And another $518M towards profit sharing. YTD profit sharing total is $739M. WOW!
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MIflyer12
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 1:48 pm

TPAC is still a PRASM dumpster fire, whether one thinks of it as less-than-successful strategy vs. UA or an outcome of Chinese carriers' rapid expansion.

Pacific revenues grew 3.2% in the quarter as 9.7% higher capacity was partially offset by a 5.9% decline in unit revenues. Unit revenue performance was pressured by a 6% increase in length of haul, softer than expected demand in Japan and a roughly 1.5 point currency headwind.
 
tphuang
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 1:53 pm

pretty good domestic numbers. I'm sure they are going to benefit greatly from MAX cuts in the next 2 quarters also.
 
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spinotter
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 2:24 pm

MIflyer12 wrote:
TPAC is still a PRASM dumpster fire, whether one thinks of it as less-than-successful strategy vs. UA or an outcome of Chinese carriers' rapid expansion.

Pacific revenues grew 3.2% in the quarter as 9.7% higher capacity was partially offset by a 5.9% decline in unit revenues. Unit revenue performance was pressured by a 6% increase in length of haul, softer than expected demand in Japan and a roughly 1.5 point currency headwind.


DL has a plan for TPAC service. Give them a few years' time.
 
wjcandee
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 2:29 pm

tphuang wrote:
pretty good domestic numbers. I'm sure they are going to benefit greatly from MAX cuts in the next 2 quarters also.


DL says MAX cuts benefitted it only-minimally, as other airlines shuffled different aircraft onto the most-competitive routes (thus keeping up competition on them).

DL says that dramatically-increased business-class and full-fare ticket sales was the big revenue driver. That's huge. That is some combination of stronger US economy and perception of superior product and reliability.
 
majano
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 2:46 pm

JammyBritton27 wrote:
Revenue of $12.5 billion was up 6.5% year-over-year.
Profit grew 39% to $1.4 billion and EPS grew 48% to $2.21. Adjusted EPS grew 32% to $2.35.
Total unit revenue, adjusted, increased 3.8% and CASM grew 14%.
Generated $5.2 billion of operating cash flow and $2.5 billion of free cash flow on a year-to-date basis, after investing $2.7 billion into the business, primarily for aircraft purchases and modifications.
Returned $497 million to shareholders.
For the September quarter, Delta expects EPS to come in the range of $2.10-2.40. Based on the strong first half performance, the company raised its full-year 2019 EPS guidance to a range of $6.75-7.25.

https://news.alphastreet.com/delta-air- ... s-q2-2019/

Just had a look at the news article linked above. A minor point of correction is that the CASM growth was 1.4% and not 14%.
 
Cointrin330
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 3:31 pm

spinotter wrote:
MIflyer12 wrote:
TPAC is still a PRASM dumpster fire, whether one thinks of it as less-than-successful strategy vs. UA or an outcome of Chinese carriers' rapid expansion.

Pacific revenues grew 3.2% in the quarter as 9.7% higher capacity was partially offset by a 5.9% decline in unit revenues. Unit revenue performance was pressured by a 6% increase in length of haul, softer than expected demand in Japan and a roughly 1.5 point currency headwind.


DL has a plan for TPAC service. Give them a few years' time.


DL's plan for TPAC are Korean Air and China Eastern, ICN and PVG.
 
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deltadawg
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 4:32 pm

Glad to be getting a little of the many thousands of dollars I have given DL this year.
GO Dawgs, Sic' em, woof woof woof
 
Bobloblaw
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 4:47 pm

And yet georgia continues to give them a 4 cent per gallon fuel tax credit.
 
PSU.DTW.SCE
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 4:49 pm

wjcandee wrote:
tphuang wrote:
pretty good domestic numbers. I'm sure they are going to benefit greatly from MAX cuts in the next 2 quarters also.


DL says MAX cuts benefitted it only-minimally, as other airlines shuffled different aircraft onto the most-competitive routes (thus keeping up competition on them).

DL says that dramatically-increased business-class and full-fare ticket sales was the big revenue driver. That's huge. That is some combination of stronger US economy and perception of superior product and reliability.

Antidotal from my experience, but I was buying a lot of close-in tickets over the past several months due to a lot of last-minute client meetings, schedules changing around, and etc. A lof of the times I was buying full Y fare 3-5 days out as that was the only inventory bucket remaining. With such high load factors, they have been able fill-up flights and then get the Y fares for the last-minute need-to-travel types.
 
Cubsrule
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 4:55 pm

PSU.DTW.SCE wrote:
wjcandee wrote:
tphuang wrote:
pretty good domestic numbers. I'm sure they are going to benefit greatly from MAX cuts in the next 2 quarters also.


DL says MAX cuts benefitted it only-minimally, as other airlines shuffled different aircraft onto the most-competitive routes (thus keeping up competition on them).

DL says that dramatically-increased business-class and full-fare ticket sales was the big revenue driver. That's huge. That is some combination of stronger US economy and perception of superior product and reliability.

Antidotal from my experience, but I was buying a lot of close-in tickets over the past several months due to a lot of last-minute client meetings, schedules changing around, and etc. A lof of the times I was buying full Y fare 3-5 days out as that was the only inventory bucket remaining. With such high load factors, they have been able fill-up flights and then get the Y fares for the last-minute need-to-travel types.


I think that’s right. On the leisure travel side (with lots of advance purchase), I’ve noticed more of an effort to sell F. We flew F back from a family vacation in YUL last month because the deal was too good to pass up (about $325/ticket and only a bit more than restricted non-basic Y).
I can't decide whether I miss the tulip or the bowling shoe more
 
Alias1024
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 5:08 pm

MIflyer12 wrote:
TPAC is still a PRASM dumpster fire, whether one thinks of it as less-than-successful strategy vs. UA or an outcome of Chinese carriers' rapid expansion.

Pacific revenues grew 3.2% in the quarter as 9.7% higher capacity was partially offset by a 5.9% decline in unit revenues. Unit revenue performance was pressured by a 6% increase in length of haul, softer than expected demand in Japan and a roughly 1.5 point currency headwind.


It will be interesting to see how the A330-900NEOs replacing 767-300ERs affects the revenue picture in the Pacific. The aircraft is much larger, but virtually all of that extra space is devoted to premium products, with the addition of Premium Select seating and a much larger Comfort + cabin. DL clearly isn't chasing Basic Economy fares with that kind of layout.
It is a mistake to think you can solve any major problems with just potatoes.
 
SteelChair
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 5:14 pm

Bobloblaw wrote:
And yet georgia continues to give them a 4 cent per gallon fuel tax credit.


Because the state gets the revenue back many times over in other forms. Thankfully, GA isn't CA or NY yet.
 
crjflyboy
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 8:23 pm

Bobloblaw wrote:
And yet georgia continues to give them a 4 cent per gallon fuel tax credit.


Isn't Delta the largest private emplyer in the state ?
 
MIflyer12
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 8:29 pm

Alias1024 wrote:
MIflyer12 wrote:
TPAC is still a PRASM dumpster fire, whether one thinks of it as less-than-successful strategy vs. UA or an outcome of Chinese carriers' rapid expansion.

Pacific revenues grew 3.2% in the quarter as 9.7% higher capacity was partially offset by a 5.9% decline in unit revenues. Unit revenue performance was pressured by a 6% increase in length of haul, softer than expected demand in Japan and a roughly 1.5 point currency headwind.


It will be interesting to see how the A330-900NEOs replacing 767-300ERs affects the revenue picture in the Pacific. The aircraft is much larger, but virtually all of that extra space is devoted to premium products, with the addition of Premium Select seating and a much larger Comfort + cabin. DL clearly isn't chasing Basic Economy fares with that kind of layout.


The prevalence of premium products might increase revenue passenger but not be enough to increase fare per square inch (or pound). It's going to make some year-over-year comparisons screwy if enough 339s enter the TPAC fleet quickly. They may talk PRASM or TRASM by region but they seldom talk margins or profits.
 
Bobloblaw
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 9:20 pm

SteelChair wrote:
Bobloblaw wrote:
And yet georgia continues to give them a 4 cent per gallon fuel tax credit.


Because the state gets the revenue back many times over in other forms. Thankfully, GA isn't CA or NY yet.

They don’t get the revenue back BECAUSE they give delta a tax break on fuel
 
crjflyboy
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 9:24 pm

Bobloblaw wrote:
SteelChair wrote:
Bobloblaw wrote:
And yet georgia continues to give them a 4 cent per gallon fuel tax credit.


Because the state gets the revenue back many times over in other forms. Thankfully, GA isn't CA or NY yet.

They don’t get the revenue back BECAUSE they give delta a tax break on fuel



Payroll taxes from all the Delta employees and their spening in Georgia creating more jobs and more payroll taxes and sales taxes ... it goes on and on
 
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 9:51 pm

Cointrin330 wrote:
spinotter wrote:
MIflyer12 wrote:
TPAC is still a PRASM dumpster fire, whether one thinks of it as less-than-successful strategy vs. UA or an outcome of Chinese carriers' rapid expansion.

Pacific revenues grew 3.2% in the quarter as 9.7% higher capacity was partially offset by a 5.9% decline in unit revenues. Unit revenue performance was pressured by a 6% increase in length of haul, softer than expected demand in Japan and a roughly 1.5 point currency headwind.


DL has a plan for TPAC service. Give them a few years' time.


DL's plan for TPAC are Korean Air and China Eastern, ICN and PVG.


I think you are right long term. ICN especially is in a location to work well. Their network to China is excellent for connections.
 
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spinotter
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 10:10 pm

Cointrin330 wrote:
spinotter wrote:
MIflyer12 wrote:
TPAC is still a PRASM dumpster fire, whether one thinks of it as less-than-successful strategy vs. UA or an outcome of Chinese carriers' rapid expansion.

Pacific revenues grew 3.2% in the quarter as 9.7% higher capacity was partially offset by a 5.9% decline in unit revenues. Unit revenue performance was pressured by a 6% increase in length of haul, softer than expected demand in Japan and a roughly 1.5 point currency headwind.


DL has a plan for TPAC service. Give them a few years' time.


DL's plan for TPAC are Korean Air and China Eastern, ICN and PVG.


And maybe some other features that we don't know about yet. DL has deep pockets, don't forget. They are dealing pretty welll with the disappearance of the NRT hub. They will never have an SFO like UA, but they will probably be #2 on the Pacific eventually.
 
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 10:11 pm

This question was asked in the earnings call in regards to the Trainer refinery:

Elliott Blackburn -- Argus Media -- Analyst

Hi, good morning. Thanks. I wanted to ask, you guys touched on this a bit and you bought the Trainer refinery years back in part to ensure continued fuel production in the New York market. How does the plant closure of the Philadelphia refinery change Delta's outlook for fuel supply and cost in that region?

Paul Jacobson -- Executive Vice President & Chief Financial Officer

Elliott, This is Paul Jacobson. Thanks for the question. That Trainer refinery was originally purchased for events just like this, as we saw supply contracting in the region through various closures back in 2012. We saw this as an opportunity for us to take a little bit more control over production and we've done just that. We've taken the refinery and used it in connection with our commercial operations to drive a -- on a average $0.05 per gallon benefit against our competitors, using the benefits of the refinery and all the logistics expertise that we have. That means that translates to about $200 million per year. Certainly we will expect to see some rebalancing going on with the lost production from the PES facility and we believe the Trainer refinery is well positioned to help us offset any increases in the region we might see.

Elliott Blackburn -- Argus Media -- Analyst

Thanks. I mean, do you guys continue to seek a partner at that facility, or how is this also changing kind of your outlook for refining generally in that area?

Paul Jacobson -- Executive Vice President & Chief Financial Officer

We're always looking for opportunities to enhance the return structure and the overall structure of how we manage that refinery. We went through the process, we found, we've got multiple investors and firms interested in talking to us. Ultimately, we weren't able to put a deal together that met all of our needs and have decided for the time being to remain at the status quo. So, we expect no changes in that structure and we put our pencils down on that process.
 
Bobloblaw
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 10:16 pm

crjflyboy wrote:
Bobloblaw wrote:
SteelChair wrote:

Because the state gets the revenue back many times over in other forms. Thankfully, GA isn't CA or NY yet.

They don’t get the revenue back BECAUSE they give delta a tax break on fuel



Payroll taxes from all the Delta employees and their spening in Georgia creating more jobs and more payroll taxes and sales taxes ... it goes on and on

Yup. And it has nothing to do with a $40m fuel tax credit. Take away the tax credit and the state will still collect every penny it’s getting today. Btw the states don’t collect payroll taxes. Only the Feds do. The revenue lost from the sales tax credit could be used to improve schools in Ga.
 
crjflyboy
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 10:31 pm

Bobloblaw wrote:
crjflyboy wrote:
Bobloblaw wrote:
They don’t get the revenue back BECAUSE they give delta a tax break on fuel



Payroll taxes from all the Delta employees and their spening in Georgia creating more jobs and more payroll taxes and sales taxes ... it goes on and on

Yup. And it has nothing to do with a $40m fuel tax credit. Take away the tax credit and the state will still collect every penny it’s getting today. Btw the states don’t collect payroll taxes. Only the Feds do. The revenue lost from the sales tax credit could be used to improve schools in Ga.


LOL ….

https://dor.georgia.gov/sites/dor.georg ... _Guide.pdf
 
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mercure1
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Re: Delta Air Lines posts better-than-expected June quarter results

Thu Jul 11, 2019 11:12 pm

MIflyer12 wrote:
TPAC is still a PRASM dumpster fire, whether one thinks of it as less-than-successful strategy vs. UA or an outcome of Chinese carriers' [/i]


US legacy carriers love to bash the ME3 carriers but capacity from the subsidized Chinese carriers is at least as damaging (likely more).
mercure f-wtcc
 
jetmechanicdave
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 12:20 am

Please stay on topic or the thread will be locked. Thanks guys
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klkla
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 12:42 am

Alias1024 wrote:
It will be interesting to see how the A330-900NEOs replacing 767-300ERs affects the revenue picture in the Pacific. The aircraft is much larger, but virtually all of that extra space is devoted to premium products, with the addition of Premium Select seating and a much larger Comfort + cabin. DL clearly isn't chasing Basic Economy fares with that kind of layout.


There will be 7 less DeltaOne seats and 25 more regular coach seats. Glorified coach seats (premium select and delta comfort) do increase from 32 to 84 seats, however. So, there will still be plenty of space for anyone chasing Basic Economy fares but less business class inventory.
 
johns624
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 1:08 am

They didn't get it from me. The wife and I just got back from a European cruise--the NCL that broke in BCN. We flew DTW-AMS in PS on the A350 and FCO-DTW in Delta One (767) and the round trip fare was around $2500 each.
 
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Dieuwer
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 1:14 am

wjcandee wrote:
tphuang wrote:
pretty good domestic numbers. I'm sure they are going to benefit greatly from MAX cuts in the next 2 quarters also.


DL says MAX cuts benefitted it only-minimally, as other airlines shuffled different aircraft onto the most-competitive routes (thus keeping up competition on them).

DL says that dramatically-increased business-class and full-fare ticket sales was the big revenue driver. That's huge. That is some combination of stronger US economy and perception of superior product and reliability.


Increased J, F, and Y sales or just higher ticket prices?
 
kiowa
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 1:23 am

crjflyboy wrote:
Bobloblaw wrote:
SteelChair wrote:

Because the state gets the revenue back many times over in other forms. Thankfully, GA isn't CA or NY yet.

They don’t get the revenue back BECAUSE they give delta a tax break on fuel



Payroll taxes from all the Delta employees and their spening in Georgia creating more jobs and more payroll taxes and sales taxes ... it goes on and on


Such logic suggests a tax credit for delta in MN and MI should be coming soon.
 
wjcandee
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 1:23 am

Dieuwer wrote:
wjcandee wrote:
tphuang wrote:
pretty good domestic numbers. I'm sure they are going to benefit greatly from MAX cuts in the next 2 quarters also.


DL says MAX cuts benefitted it only-minimally, as other airlines shuffled different aircraft onto the most-competitive routes (thus keeping up competition on them).

DL says that dramatically-increased business-class and full-fare ticket sales was the big revenue driver. That's huge. That is some combination of stronger US economy and perception of superior product and reliability.


Increased J, F, and Y sales or just higher ticket prices?


Reread what I said. It's self-explanatory, and straight from the company.
 
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Dieuwer
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 1:33 am

wjcandee wrote:
Dieuwer wrote:
wjcandee wrote:

DL says MAX cuts benefitted it only-minimally, as other airlines shuffled different aircraft onto the most-competitive routes (thus keeping up competition on them).

DL says that dramatically-increased business-class and full-fare ticket sales was the big revenue driver. That's huge. That is some combination of stronger US economy and perception of superior product and reliability.


Increased J, F, and Y sales or just higher ticket prices?


Reread what I said. It's self-explanatory, and straight from the company.


They sold more tickets? To me the word "sales" seems always ambivalent.
 
crjflyboy
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 1:54 am

kiowa wrote:
crjflyboy wrote:
Bobloblaw wrote:
They don’t get the revenue back BECAUSE they give delta a tax break on fuel



Payroll taxes from all the Delta employees and their spening in Georgia creating more jobs and more payroll taxes and sales taxes ... it goes on and on


Such logic suggests a tax credit for delta in MN and MI should be coming soon.



Both states are promising massive tax breaks if Delta moves their HQ to their respective states.

https://www.duluthnewstribune.com/news/ ... -back-home

https://www.michiganradio.org/post/mich ... ap-Georgia
 
wjcandee
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 2:24 am

Dieuwer wrote:
They sold more tickets? To me the word "sales" seems always ambivalent.


You are actually correct. I read a comment that suggested that more seats were sold in the premium cabin, and more seats were sold in the nonrefundable fare buckets, reflecting the strength of the economy causing more short-lead-time business travel plus such travelers choosing Delta for reliability and flight convenience (i.e. flight schedule). HOWEVER, price obviously enters into it. Because DL was/is in many cases discounting the higher fare buckets as part of revenue management, a total revenue number suggests that: (1) it may take fewer discounts to put people in those buckets; and (2) people going to book a flight may now see an unavailability of non-refundable ticket buckets as revenue management holds more seats open for last-minute travelers in the higher buckets. All in all, price does of course enter into it and I regret my snap response.
 
777Mech
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 2:43 am

Bobloblaw wrote:
crjflyboy wrote:
Bobloblaw wrote:
They don’t get the revenue back BECAUSE they give delta a tax break on fuel



Payroll taxes from all the Delta employees and their spening in Georgia creating more jobs and more payroll taxes and sales taxes ... it goes on and on

Yup. And it has nothing to do with a $40m fuel tax credit. Take away the tax credit and the state will still collect every penny it’s getting today. Btw the states don’t collect payroll taxes. Only the Feds do. The revenue lost from the sales tax credit could be used to improve schools in Ga.


1st off, myself and every Delta employee based in the state of Georgia, pay state tax in Georgia.

2nd, you can tax aviation fuel, but all of the money collected has to be spent on aviation related expenses/projects. You cannot tax aviation fuel and spend that money on schools. That's not how this works.
 
MSPNWA
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 2:51 am

From the press release: https://ir.delta.com/news/news-details/ ... fault.aspx

"Delivered 148 days of zero mainline cancellations and 78 days of zero system cancellations for the first half of the year, a 30% improvement over 2018's record performance."

This statement is simply not true. It's a lie (they had about 20 days of mainline cancels in June alone). And judging by the DL widebody thread which I have been following (and not every cancel is caught in there), the true number is much less than 148. I'm rough guessing around 100. Still an impressive number, but it's simply wrong to say 148. Why not tell the truth when the truth is already good for business?

Prost wrote:
We've taken the refinery and used it in connection with our commercial operations to drive a -- on a average $0.05 per gallon benefit against our competitors, using the benefits of the refinery and all the logistics expertise that we have. That means that translates to about $200 million per year. Certainly we will expect to see some rebalancing going on with the lost production from the PES facility and we believe the Trainer refinery is well positioned to help us offset any increases in the region we might see.


They had that fuel cost advantage prior to the refinery. It hasn't changed after, so it's dubious to claim it's helped at all.
 
hkcanadaexpat
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 3:19 am

MSPNWA wrote:
(and not every cancel is caught in there)

I'd challenge that
 
PIEAvantiP180
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 3:30 am

During the Q and A they mentioned that BOS will be expanded to about 200 daily flights. Didn't realize they were going beyond 170 or so. Can terminal A handle that many flights in a single days worth of ops or will they have to start using hard stands and busses?


Mike Linenberg

Yes. Hey. Good morning, everyone. Yes. So, I have one and one follow-up. Just I guess the first one to Glen. You called out the strength in Boston. And I think over this last quarter, I think Boston was maybe officially announced [ph] as a hub. I think there was also some press out about maybe some other focus cities like Nashville and Austin. As we think about your domestic capacity growth in 2019, Glen, will more of it be allocated to these focus cities or newer hubs, or how should we think about the split across your system?

Glen Hauenstein

Great question, Mike. I think, Boston is a true focus city for us that we have commitments over the next year, year and half to take our departure levels up towards 200. For those of you who are familiar with our Boston operation, we have shared our terminal with various carriers over the years. And we will take over the entire terminal, starting late this summer, will allow us to continue to grow in Boston. And what we've been focused on is making our hubs more efficient so we can drive higher earnings and targeting those cities that are high growth. And Boston, Seattle, Austin, Nashville, Raleigh, all fit that profile of cities where growth and growth for air travel is significantly higher than they are across the system in general. So, that's really been our thoughts to continue to grow where markets are growing and to continue to make our existing hubs more efficient.
 
MSPNWA
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 5:14 am

hkcanadaexpat wrote:
I'd challenge that


I welcome the challenge.

Like June 29 BOS-LIS or July 3 SIN-NRT as a sample.

I love the listing of swaps and such to show the logistics, and I can't blame you for not catching them all.
 
hkcanadaexpat
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Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 5:52 am

MSPNWA wrote:
hkcanadaexpat wrote:
I'd challenge that

I welcome the challenge.
Like June 29 BOS-LIS or July 3 SIN-NRT as a sample.
I love the listing of swaps and such to show the logistics, and I can't blame you for not catching them all.

BOS-LIS is narrowbody which we don't report. NRT-SIN flight was reported in post #672. Try again.
 
MSPNWA
Posts: 3248
Joined: Thu Apr 23, 2009 2:48 am

Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 6:01 am

hkcanadaexpat wrote:
BOS-LIS is narrowbody which we don't report. NRT-SIN flight was reported in post #672. Try again.


1) Forgot it was a narrowbody. There's plenty of other widebodies to choose from.
2) You didn't list SIN-NRT as a cancellation for July 3rd. The NRT-SIN flight diverting to NRT on the 2nd is not the same thing. I know nothing about SIN-NRT the 3rd. Also, are you going to add the cancellations for July 10th and July 11 in your new posts? Missing a few there.

I think "try again" is very appropriate. Again, no problem if you can't get them all. Nobody expects that.
 
Alias1024
Posts: 2519
Joined: Mon Oct 25, 2004 11:13 am

Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 1:00 pm

klkla wrote:
Alias1024 wrote:
It will be interesting to see how the A330-900NEOs replacing 767-300ERs affects the revenue picture in the Pacific. The aircraft is much larger, but virtually all of that extra space is devoted to premium products, with the addition of Premium Select seating and a much larger Comfort + cabin. DL clearly isn't chasing Basic Economy fares with that kind of layout.


There will be 7 less DeltaOne seats and 25 more regular coach seats. Glorified coach seats (premium select and delta comfort) do increase from 32 to 84 seats, however. So, there will still be plenty of space for anyone chasing Basic Economy fares but less business class inventory.


There are multiple layouts for the 767-300ERs. Only in the most premium heavy layout does the 767 have more DeltaOne or significantly less main cabin space seating than the A330-900. In other layouts there's an increase of 3 Delta One seats, the 28 new premium select seats, a gain of 21-26 comfort, while main cabin is +/- 3 seats.
It is a mistake to think you can solve any major problems with just potatoes.
 
Rdh3e
Posts: 3500
Joined: Wed Mar 30, 2011 2:09 pm

Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 1:14 pm

PIEAvantiP180 wrote:
During the Q and A they mentioned that BOS will be expanded to about 200 daily flights. Didn't realize they were going beyond 170 or so. Can terminal A handle that many flights in a single days worth of ops or will they have to start using hard stands and busses?


Mike Linenberg

Yes. Hey. Good morning, everyone. Yes. So, I have one and one follow-up. Just I guess the first one to Glen. You called out the strength in Boston. And I think over this last quarter, I think Boston was maybe officially announced [ph] as a hub. I think there was also some press out about maybe some other focus cities like Nashville and Austin. As we think about your domestic capacity growth in 2019, Glen, will more of it be allocated to these focus cities or newer hubs, or how should we think about the split across your system?

Glen Hauenstein

Great question, Mike. I think, Boston is a true focus city for us that we have commitments over the next year, year and half to take our departure levels up towards 200. For those of you who are familiar with our Boston operation, we have shared our terminal with various carriers over the years. And we will take over the entire terminal, starting late this summer, will allow us to continue to grow in Boston. And what we've been focused on is making our hubs more efficient so we can drive higher earnings and targeting those cities that are high growth. And Boston, Seattle, Austin, Nashville, Raleigh, all fit that profile of cities where growth and growth for air travel is significantly higher than they are across the system in general. So, that's really been our thoughts to continue to grow where markets are growing and to continue to make our existing hubs more efficient.


It says "toward 200" which is a meaningless statement likely designed to scare B6. In reality, going from 170 to 171 is "towards 200".

Don't read too much into it
 
panamair
Posts: 4069
Joined: Fri Oct 12, 2001 2:24 am

Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 4:15 pm

Rdh3e wrote:
PIEAvantiP180 wrote:
During the Q and A they mentioned that BOS will be expanded to about 200 daily flights. Didn't realize they were going beyond 170 or so. Can terminal A handle that many flights in a single days worth of ops or will they have to start using hard stands and busses?


Mike Linenberg

Yes. Hey. Good morning, everyone. Yes. So, I have one and one follow-up. Just I guess the first one to Glen. You called out the strength in Boston. And I think over this last quarter, I think Boston was maybe officially announced [ph] as a hub. I think there was also some press out about maybe some other focus cities like Nashville and Austin. As we think about your domestic capacity growth in 2019, Glen, will more of it be allocated to these focus cities or newer hubs, or how should we think about the split across your system?

Glen Hauenstein

Great question, Mike. I think, Boston is a true focus city for us that we have commitments over the next year, year and half to take our departure levels up towards 200. For those of you who are familiar with our Boston operation, we have shared our terminal with various carriers over the years. And we will take over the entire terminal, starting late this summer, will allow us to continue to grow in Boston. And what we've been focused on is making our hubs more efficient so we can drive higher earnings and targeting those cities that are high growth. And Boston, Seattle, Austin, Nashville, Raleigh, all fit that profile of cities where growth and growth for air travel is significantly higher than they are across the system in general. So, that's really been our thoughts to continue to grow where markets are growing and to continue to make our existing hubs more efficient.


It says "toward 200" which is a meaningless statement likely designed to scare B6. In reality, going from 170 to 171 is "towards 200".

Don't read too much into it


Later on when answering another question, he did mention the 200 target more specifically though:

Ted Reed, [93]
--------------------------------------------------------------------------------
All right. Secondly, I would like to ask about Boston. You said -- Glen, you said you'd get to 200, is that going to be hit for you once you get to 200? And also you mentioned competitors there flying Boston-Asia, is that something you're interested in?
--------------------------------------------------------------------------------
Glen W. Hauenstein, Delta Air Lines, Inc. - President [94]
--------------------------------------------------------------------------------
No. I said our partners were flying from Boston to Asia. As you may know, we -- our partner Korean launched the Korea to Boston this year on the 787. And it was an incredible success. So they have been doing quite well on that. I think they will expand that service as we move into next year. So we've been working with our partners. We've been growing our own hub. And I think, 200 is kind of our medium-term objective here, and we think we'll get there in the next 18 to 24 months. But beyond that, we'll see how the market grows. We think at 200, it's a very sustainable and very profitable franchise for us.
 
Rdh3e
Posts: 3500
Joined: Wed Mar 30, 2011 2:09 pm

Re: Delta Air Lines posts better-than-expected June quarter results

Fri Jul 12, 2019 6:58 pm

panamair wrote:

That additional context makes it sound like they'll be at 200 in roughly July of 2021 from my reading.

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