MIflyer12
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Delta 3Q2019 earnings released

Thu Oct 10, 2019 11:07 am

https://s2.q4cdn.com/181345880/files/do ... Profit.pdf

September Quarter Financial Highlights
• Adjusted pre-tax income increased $361 million, or 22 percent versus prior year.
• Adjusted earnings per share were $2.32, a 29 percent increase year over year; Earnings per share and
adjusted earnings per share reflect 6.5 percent top-line growth, 2.5 points of operating margin expansion
and $1.4 billion of free cash flow.
• Total adjusted revenue, which excludes refinery sales, grew 6.5 percent to $12.6 billion; Total revenue and
adjusted total revenue are a new quarterly record, as the company served a record 55.2 million passengers
in the quarter.
• Total unit revenue, adjusted, increased 2.5 percent; Total unit revenue and total unit revenue adjusted
increases were driven by healthy leisure and corporate demand and an approximate one point benefit from
the amended American Express agreement.
• Consolidated operating cost per available seat mile ("CASM") decreased 2.1 percent compared to the
September 2018 quarter, primarily due to lower fuel costs and higher capacity.


Great revenue growth and decent control of CASM-ex fuel. Poor quarter TPAC.
 
cokepopper
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 11:16 am

Profit sharing 1.25 Billion YTD. :-)
 
jumbojet
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 11:24 am

A few more bullets from the linked article,

Culture and People

• Rewarded Delta people through an additional $517 million in profit sharing accrual and paid $12 million in Shared Rewards, recognizing the performance of Delta's more than 80,000 employees through a busy summer.
• Certified as a Great Place to Work for the fourth consecutive year, with 92% of respondents proud to work at Delta and 90% wanting to work at Delta for a long time, emphasizing the importance of culture as a competitive advantage.



Operational Reliability

• Delivered 202 days of zero mainline cancellations and 115 days of zero system cancellations through the first nine months of the year, an improvement of 12% and 19% respectively versus 2018 (based on Delta internal reporting for flights scheduled systemwide).
• Reached record completion factor through the September quarter on a system and mainline basis, with mainline completion factor of 99.79%.
• Carried an all-time record 55.2 million customers in the September quarter, 6% more than prior year.
 
TropicalSky
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 11:29 am

 
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lightsaber
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 11:34 am

TropicalSky wrote:

Delta's strategy for using a large number of older aircraft paid off. Delta normally uses these aircraft low utilization, so there is a huge surge capability.

I noted the link noted a doubling of pilot overtime. Was that 1 hour to 2 per quarter or say 50 to 100? This implies hiring and aircraft buys ahead.

Great news for DL.

Lightsaber
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TropicalSky
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 11:42 am

It appears from the outside looking in that DELTA management team is focused on getting best value for the money and keeping expenses low.....those steal-of-a-deal orders from AIRBUS & BOEING on 339's,321's & 739's are paying dividends as they didn't pay top prices. Should be very interesting to see how they allocate the extra incoming A350's and if there's truth to a potential B787 order.

lightsaber wrote:
TropicalSky wrote:

Delta's strategy for using a large number of older aircraft paid off. Delta normally uses these aircraft low utilization, so there is a huge surge capability.

I noted the link noted a doubling of pilot overtime. Was that 1 hour to 2 per quarter or say 50 to 100? This implies hiring and aircraft buys ahead.

Great news for DL.

Lightsaber
 
TYWoolman
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 11:46 am

Looking back in 90's when Delta had its sights on being a major international player during the Mr. Ron Allen days, with new service to the likes of Manchester, Barcelona, Copenhagen, etc...I can only say this: The Network and Partnerships Strategic Highlights in this earnings call, I believe, is the benchmark that Delta truly has arrived as an international force more than it could ever have dreamed. What awaits ahead for Delta in the international scene will be amazing as Mr Bastian propels forward! Keep Climbing!
 
ScottB
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 11:54 am

MIflyer12 wrote:
September Quarter Financial Highlights


Operating margin of 19.7% by my calculation is very, very impressive.

Looks like Delta One and other premium products (does this include C+?) account for 40% of ticket revenue. That's impressive but also slightly worrisome with a potential recession on the horizon.

TropicalSky wrote:
Should be very interesting to see how they allocate the extra incoming A350's and if there's truth to a potential B787 order.


With the large order for A339s and the expanded order of A350s (including the LATAM aircraft) I'm not sure there's a need for the 787 at DL. That said, having 787s in the fleet would certainly keep Airbus's pencils very, very sharp when negotiating future orders, although Delta's willingness to operate a diverse fleet (supported by TechOps) may get them most of the way there anyway.
 
MIflyer12
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 11:57 am

Anybody going to listen to the earnings conf call at 10am EDT today? Will it be Hunter Keay, Jamie Baker (or both!) who questions if the planned rate of growth is too aggressive?
 
panamair
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 12:00 pm

ScottB wrote:
MIflyer12 wrote:
September Quarter Financial Highlights


Operating margin of 19.7% by my calculation is very, very impressive..


Actually Q3 operation margin was 16.5% GAAP or 16.3% adjusted.
 
MIflyer12
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 12:01 pm

TYWoolman wrote:
Looking back in 90's when Delta had its sights on being a major international player during the Mr. Ron Allen days, with new service to the likes of Manchester, Barcelona, Copenhagen, etc...I can only say this: The Network and Partnerships Strategic Highlights in this earnings call, I believe, is the benchmark that Delta truly has arrived as an international force more than it could ever have dreamed. What awaits ahead for Delta in the international scene will be amazing as Mr Bastian propels forward! Keep Climbing!


Please read the Passenger Revenue and Statistical Summaries. Domestic is growing faster than International in ASM, RPM, and Revenues - and has been, routinely.
 
SUNCTRY738
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 12:01 pm

[quote="TropicalSky"]It appears from the outside looking in that DELTA management team is focused on getting best value for the money and keeping expenses low.....those steal-of-a-deal orders from AIRBUS & BOEING on 339's,321's & 739's are paying dividends as they didn't pay top prices. Should be very interesting to see how they allocate the extra incoming A350's and if there's truth to a potential B787 order.

I saw this article about gaps in Boeing's 787 production line and I thought of DL again swooping in for a bargain 787 order to fill the gaps:

https://www.reuters.com/article/us-boei ... SKBN1WO2N8
 
ScottB
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 12:15 pm

panamair wrote:
Actually Q3 operation margin was 16.5% GAAP or 16.3% adjusted.


Oops! I could've sworn I typed the right numbers into the calculator!
 
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enilria
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 12:21 pm

lightsaber wrote:
TropicalSky wrote:

Delta's strategy for using a large number of older aircraft paid off. Delta normally uses these aircraft low utilization, so there is a huge surge capability.

I noted the link noted a doubling of pilot overtime. Was that 1 hour to 2 per quarter or say 50 to 100? This implies hiring and aircraft buys ahead.

Great news for DL.

Lightsaber

To be fair, competitors have like 200 MAXs out of service and the number grows every week. That’s why there is a surprise traffic increase.
 
dcaproducer
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 12:29 pm

Great quarter. As someone who travels on DL a couple of times a month I can say the planes have been full this summer. I was connecting in SLC two weeks ago and they can't get their new terminal open fast enough. That place was mobbed.

FCM is working. I've gone from relying on upgrades to buying F on most of my flights. The fares are mostly reasonable and that is why they're selling the F seats instead of giving them to upgrades.

In my experience, the majority of DL employees are happy and friendly. The product is solid and consistent and I almost always get where I'm going on time.
 
jumbojet
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 12:36 pm

enilria wrote:
lightsaber wrote:
TropicalSky wrote:

Delta's strategy for using a large number of older aircraft paid off. Delta normally uses these aircraft low utilization, so there is a huge surge capability.

I noted the link noted a doubling of pilot overtime. Was that 1 hour to 2 per quarter or say 50 to 100? This implies hiring and aircraft buys ahead.

Great news for DL.

Lightsaber

To be fair, competitors have like 200 MAXs out of service and the number grows every week. That’s why there is a surprise traffic increase.


obviously DL picked up passengers from other carriers (AA, UA, SW) hamstrung by the planes grounding. However, who's to say DL won't hold on to that increase in traffic once the MAX returns to service? Bastian is pretty confident that DL can hold onto the market share gains it made ion the period.
 
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gdg9
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 1:14 pm

Delta will also acquire four A350 aircraft from LATAM, and has agreed to assume LATAM’s commitment to purchase 10 additional A350 aircraft.

So 14 more A350s for Delta?
@dfwtower
 
max999
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 1:18 pm

dcaproducer wrote:

FCM is working. I've gone from relying on upgrades to buying F on most of my flights. The fares are mostly reasonable and that is why they're selling the F seats instead of giving them to upgrades.


I think it's great that DL lowered the price of F and is selling more of those seats. Instead of listening to the Flyertalk crowd who think free upgrades are a god given right.
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DL747400
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 1:32 pm

gdg9 wrote:
Delta will also acquire four A350 aircraft from LATAM, and has agreed to assume LATAM’s commitment to purchase 10 additional A350 aircraft.

So 14 more A350s for Delta?


You can read about it here:

viewtopic.php?f=3&t=1431927

Back on topic: Not unexpectedly, DL has once again posted very strong and very positive consolidated Q3 earnings. As an investor who owns DL shares, I could not be more pleased with how DL's leadership team is performing. And if my math and memory are correct, it appears that early next year DL employees may be dividing the largest profit sharing pool in their history.

Great job! :checkmark:
Last edited by DL747400 on Thu Oct 10, 2019 1:43 pm, edited 2 times in total.
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StTim
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 1:38 pm

According to the delivery trackers - Delta has received the most frames of any airline from both Boeing and Airbus this year.

Have they changed strategy to newer metal (carbon fibre?)
 
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exFWAOONW
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 1:39 pm

max999 wrote:
dcaproducer wrote:

FCM is working. I've gone from relying on upgrades to buying F on most of my flights. The fares are mostly reasonable and that is why they're selling the F seats instead of giving them to upgrades.


I think it's great that DL lowered the price of F and is selling more of those seats. Instead of listening to the Flyertalk crowd who think free upgrades are a god given right.

Transportation, everyone needs it, but few are willing to pay for it. :lol:
Is just me, or is flying not as much fun anymore?
 
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gdg9
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 1:43 pm

DL747400 wrote:
gdg9 wrote:
Delta will also acquire four A350 aircraft from LATAM, and has agreed to assume LATAM’s commitment to purchase 10 additional A350 aircraft.

So 14 more A350s for Delta?


You can read about it here:

viewtopic.php?f=3&t=1431927

[quote]

Thanks, I had missed this news.
@dfwtower
 
Alias1024
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 1:44 pm

lightsaber wrote:

I noted the link noted a doubling of pilot overtime. Was that 1 hour to 2 per quarter or say 50 to 100? This implies hiring and aircraft buys ahead.

Lightsaber


According to this article the number was 40,554 from May to August. Although not clear I believe that is duty periods worked. So if that was all at Delta’s minimum daily guarantee of 5.25 hours then it’s 212,908 hours. In reality some of those would have been longer days, driving the number of total hours higher.

http://news.yahoo.com/exclusive-delta-p ... 24225.html
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kiowa
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 1:49 pm

enilria wrote:
lightsaber wrote:
TropicalSky wrote:

Delta's strategy for using a large number of older aircraft paid off. Delta normally uses these aircraft low utilization, so there is a huge surge capability.

I noted the link noted a doubling of pilot overtime. Was that 1 hour to 2 per quarter or say 50 to 100? This implies hiring and aircraft buys ahead.

Great news for DL.

Lightsaber

To be fair, competitors have like 200 MAXs out of service and the number grows every week. That’s why there is a surprise traffic increase.



Well done for Delta this quarter. They certainly have benefited from not having the 737 max but kudos to the management. They have benefited hugely from the Northwest managers they got in the merger.
 
Jet-lagged
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 1:54 pm

Revenue up 6.5% must be outgrowing the market and increasing share of dollars spent, right?
 
B757Forever
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 1:57 pm

StTim wrote:
According to the delivery trackers - Delta has received the most frames of any airline from both Boeing and Airbus this year.

Have they changed strategy to newer metal (carbon fibre?)



IIRC, DL will take delivery of 82 new aircraft in 2019, more than any other year in their history. It's a combination of A350, A330neo, A321, A220 and B737-900.
The Rolls Royce Dart. Noise = Shaft Horsepower.
 
MIflyer12
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 2:02 pm

Jet-lagged wrote:
Revenue up 6.5% must be outgrowing the market and increasing share of dollars spent, right?


We won't know that until other carriers release earnings data over the next ~two weeks. DL will probably beat AA in revenue growth; maybe less likely a MAX-ed WN. LCCs have been growing fast, however. I wouldn't bet $ on DL beating a size-weighted industry revenue number.
 
TropicalSky
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 2:02 pm

kiowa wrote:
enilria wrote:
lightsaber wrote:
Delta's strategy for using a large number of older aircraft paid off. Delta normally uses these aircraft low utilization, so there is a huge surge capability.

I noted the link noted a doubling of pilot overtime. Was that 1 hour to 2 per quarter or say 50 to 100? This implies hiring and aircraft buys ahead.

Great news for DL.

Lightsaber

To be fair, competitors have like 200 MAXs out of service and the number grows every week. That’s why there is a surprise traffic increase.



Well done for Delta this quarter. They certainly have benefited from not having the 737 max but kudos to the management. They have benefited hugely from the Northwest managers they got in the merger.


I agree! Must be one of better management teams ever assembled....just hope they can keep it up and train the next group that's schedule to succeed them
 
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gatibosgru
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 2:04 pm

Hire me, Delta! :P
@DadCelo
 
dmorbust
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 2:10 pm

Ed Bastian in opening remarks of the Q3 results call just said that DL is the largest carrier in the world both by revenue and profit. I guess they have officially surpassed AA by the former metric.
I already knew DL was largest by market cap and was very close to overtaking AA by revenue, but interesting to hear it officially now.
 
aumaverick
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 2:15 pm

Everyone here keeps mentioning a potential buy of additional aircraft in the form of 787s, but really, doesn't this record Q3 profit and overall market position point to Delta being in a good position to drive the launch of the 797 on their terms?
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TropicalSky
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 2:24 pm

dmorbust wrote:
Ed Bastian in opening remarks of the Q3 results call just said that DL is the largest carrier in the world both by revenue and profit. I guess they have officially surpassed AA by the former metric.
I already knew DL was largest by market cap and was very close to overtaking AA by revenue, but interesting to hear it officially now.


Hopefully he discuss the Latam deal and those A350's
 
TropicalSky
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 2:27 pm

aumaverick wrote:
Everyone here keeps mentioning a potential buy of additional aircraft in the form of 787s, but really, doesn't this record Q3 profit and overall market position point to Delta being in a good position to drive the launch of the 797 on their terms?


You make a valid point.....but DAL don't seem inclined to be apart of the first airlines to order an entire new type of plane.....they tend to wait and let the issues be ironed out for the most part. I would be excited if they do be the leaders to order the B797 but I highly doubt they will
 
OpsCheckNML
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 2:28 pm

I tell you feels like we're the first operator with a220.
 
TropicalSky
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 2:36 pm

OpsCheckNML wrote:
I tell you feels like we're the first operator with a220.


May I ask why?
 
Thomaas
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 2:50 pm

jumbojet wrote:
enilria wrote:
lightsaber wrote:
Delta's strategy for using a large number of older aircraft paid off. Delta normally uses these aircraft low utilization, so there is a huge surge capability.

I noted the link noted a doubling of pilot overtime. Was that 1 hour to 2 per quarter or say 50 to 100? This implies hiring and aircraft buys ahead.

Great news for DL.

Lightsaber

To be fair, competitors have like 200 MAXs out of service and the number grows every week. That’s why there is a surprise traffic increase.


obviously DL picked up passengers from other carriers (AA, UA, SW) hamstrung by the planes grounding. However, who's to say DL won't hold on to that increase in traffic once the MAX returns to service? Bastian is pretty confident that DL can hold onto the market share gains it made ion the period.


Very unlikely that they would hold on to market share given that their competitors have purposefully reduced flying to account for reduced aircraft availability. SWA offers convenient direct options to passengers while AA and UA have hubs in much more O&D heavy airports, DL offering competing connecting itineraries will unlikely keep being an appealing option for most.
 
apodino
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 3:09 pm

kiowa wrote:
enilria wrote:
lightsaber wrote:
Delta's strategy for using a large number of older aircraft paid off. Delta normally uses these aircraft low utilization, so there is a huge surge capability.

I noted the link noted a doubling of pilot overtime. Was that 1 hour to 2 per quarter or say 50 to 100? This implies hiring and aircraft buys ahead.

Great news for DL.

Lightsaber

To be fair, competitors have like 200 MAXs out of service and the number grows every week. That’s why there is a surprise traffic increase.



Well done for Delta this quarter. They certainly have benefited from not having the 737 max but kudos to the management. They have benefited hugely from the Northwest managers they got in the merger.


Not really. A lot of the Northwest managers were put on the street and are now working for American. The results speak for themselves.
 
B757Forever
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 3:16 pm

TropicalSky wrote:
aumaverick wrote:
Everyone here keeps mentioning a potential buy of additional aircraft in the form of 787s, but really, doesn't this record Q3 profit and overall market position point to Delta being in a good position to drive the launch of the 797 on their terms?


You make a valid point.....but DAL don't seem inclined to be apart of the first airlines to order an entire new type of plane.....they tend to wait and let the issues be ironed out for the most part. I would be excited if they do be the leaders to order the B797 but I highly doubt they will



Ed Bastian has already stated that he wanted Delta to be a launch customer for the 797. DL has a group working with Boeing on the desired capabilities. I believe UA has expressed the same interest.
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MIflyer12
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 3:26 pm

aumaverick wrote:
Everyone here keeps mentioning a potential buy of additional aircraft in the form of 787s, but really, doesn't this record Q3 profit and overall market position point to Delta being in a good position to drive the launch of the 797 on their terms?


I don't see how DL's financial performance meaningfully changes their position vs. Boeing. Boeing needs carriers with enough financial strength and management stability to order and induct new aircraft in an orderly manager. But you could have said that about Delta 5 or 7 years ago just as well. I don't see DL advancing Boeing $5 Billion for engineering and tooling, nor anything radical like that.
 
AEROFAN
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 3:41 pm

apodino wrote:
kiowa wrote:
enilria wrote:
To be fair, competitors have like 200 MAXs out of service and the number grows every week. That’s why there is a surprise traffic increase.



Not really. A lot of the Northwest managers were put on the street and are now working for American. The results speak for themselves.


I can totally understand this. I just flew AA and QR in business. AA's business was one of the worse business class that I have ever experienced and that's saying a lot since I have flown TAP's as well. If former Northwest's managers have resulted in a business class offering that was little better than a premium economy, then I can understand why DAL is experiencing such positive numbers.
 
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LAXintl
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 3:48 pm

JP Morgan not so thrilled about outlook.

JPM equates Delta's disappointing Q4 earnings guide/higher cost outlook to "limping across the finish line”

https://www.cnbc.com/2019/10/10/delta-a ... -2019.html
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PSU.DTW.SCE
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 3:51 pm

JPM can go tell that to the employees are are actually getting a share of the pie for once.
 
OneX123
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 3:52 pm

AEROFAN wrote:
apodino wrote:
kiowa wrote:


Not really. A lot of the Northwest managers were put on the street and are now working for American. The results speak for themselves.


I can totally understand this. I just flew AA and QR in business. AA's business was one of the worse business class that I have ever experienced and that's saying a lot since I have flown TAP's as well. If former Northwest's managers have resulted in a business class offering that was little better than a premium economy, then I can understand why DAL is experiencing such positive numbers.


Care to expand? I also flew AA business GRU-JFK in a 777-300. Very nice product. 1-2-1, fully lie flat, all seats facing forward. Great food, happy staff, on-time arrival and departure.

Maybe you got a poor aircraft and that's too bad. I've sat in the back of enough DL MD88's to know that sometimes there are differences in onboard product.
 
RDUDDJI
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 3:57 pm

max999 wrote:
dcaproducer wrote:

FCM is working. I've gone from relying on upgrades to buying F on most of my flights. The fares are mostly reasonable and that is why they're selling the F seats instead of giving them to upgrades.


I think it's great that DL lowered the price of F and is selling more of those seats. Instead of listening to the Flyertalk crowd who think free upgrades are a god given right.


It cuts both ways. As someone who has spent ~$300K (of my company's money) on DL in the last few years, the devaluation of their FF benefits (i.e. upgrades, diminishing mileage value, etc.) over the last decade has made me less loyal. I still prefer DL, but now I just fly whoever is fastest and cheapest. I've prob moved 20-25% of my flying to other airlines. I've also gotten rid of the DL AMEX in favor of an airline agnostic rewards card.

DL seems to be leading the race to devalue FF benefits in the U.S. From a business perspective, I guess I can't blame them. Dollar for dollar, they likely make more money from all the ancillary revenue that peeps with no status bring (i.e. bag fees, FCM, C+, seat assignments, etc.). Time will tell whether watering down FF programs is a good move or not, but results like this make it look like it's working for them.
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Sightseer
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 4:25 pm

Thomaas wrote:

Very unlikely that they would hold on to market share given that their competitors have purposefully reduced flying to account for reduced aircraft availability. SWA offers convenient direct options to passengers while AA and UA have hubs in much more O&D heavy airports, DL offering competing connecting itineraries will unlikely keep being an appealing option for most.

I don't necessarily buy that. While I agree that AA/UA/WN will regain O&D once the MAX flies again, I wouldn't be surprised if they've lost more connecting traffic (by design, since it's generally lower-yielding) and that that's where DL is seeing notable gains. And those passengers may be less likely to go back to their previous carriers.
 
T773ER
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Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 4:37 pm

Alias1024 wrote:
lightsaber wrote:

I noted the link noted a doubling of pilot overtime. Was that 1 hour to 2 per quarter or say 50 to 100? This implies hiring and aircraft buys ahead.

Lightsaber


According to this article the number was 40,554 from May to August. Although not clear I believe that is duty periods worked. So if that was all at Delta’s minimum daily guarantee of 5.25 hours then it’s 212,908 hours. In reality some of those would have been longer days, driving the number of total hours higher.

http://news.yahoo.com/exclusive-delta-p ... 24225.html


No, that 40,554 is the number of double pay trips, a vast majority of which were longer than one day (so more than one duty period). So for example just 1 trip of that 40,554 number could be 8 days long, or 84hrs of pay time(8*5.25*2=84). So we can assume a minimum of an extra 425,816hours(1*5.25*40,554*2), and more likely closer to 850,00 hours being as the average trip was close to 2days. The average hourly pay rate is close to $180 per hour which would equate to an additional $150 million in pilot salary expenses.
 
DiamondFlyer
Posts: 3146
Joined: Wed Oct 29, 2008 11:50 pm

Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 4:39 pm

TropicalSky wrote:
OpsCheckNML wrote:
I tell you feels like we're the first operator with a220.


May I ask why?


Because the dispatch reliability for the airframe is terrible.
From my cold, dead hands
 
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airportugal310
Posts: 3500
Joined: Sun Apr 11, 2004 12:49 pm

Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 4:50 pm

RDUDDJI wrote:
max999 wrote:
dcaproducer wrote:

FCM is working. I've gone from relying on upgrades to buying F on most of my flights. The fares are mostly reasonable and that is why they're selling the F seats instead of giving them to upgrades.


I think it's great that DL lowered the price of F and is selling more of those seats. Instead of listening to the Flyertalk crowd who think free upgrades are a god given right.


It cuts both ways. As someone who has spent ~$300K (of my company's money) on DL in the last few years, the devaluation of their FF benefits (i.e. upgrades, diminishing mileage value, etc.) over the last decade has made me less loyal. I still prefer DL, but now I just fly whoever is fastest and cheapest. I've prob moved 20-25% of my flying to other airlines. I've also gotten rid of the DL AMEX in favor of an airline agnostic rewards card.

DL seems to be leading the race to devalue FF benefits in the U.S. From a business perspective, I guess I can't blame them. Dollar for dollar, they likely make more money from all the ancillary revenue that peeps with no status bring (i.e. bag fees, FCM, C+, seat assignments, etc.). Time will tell whether watering down FF programs is a good move or not, but results like this make it look like it's working for them.



Agreed on the DL AMEX...It’s basically a garbage card of mine now that I have the Chase Sapphire Reserve.
“They bought their tickets, they knew what they were getting into. I say, let 'em crash.”
 
apodino
Posts: 3597
Joined: Mon Apr 04, 2005 2:11 am

Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 4:52 pm

Sightseer wrote:
Thomaas wrote:

Very unlikely that they would hold on to market share given that their competitors have purposefully reduced flying to account for reduced aircraft availability. SWA offers convenient direct options to passengers while AA and UA have hubs in much more O&D heavy airports, DL offering competing connecting itineraries will unlikely keep being an appealing option for most.

I don't necessarily buy that. While I agree that AA/UA/WN will regain O&D once the MAX flies again, I wouldn't be surprised if they've lost more connecting traffic (by design, since it's generally lower-yielding) and that that's where DL is seeing notable gains. And those passengers may be less likely to go back to their previous carriers.


Keep an eye on JFK when the max returns. Many of the AA MAX cuts have been in JFK, and I suspect AA may add that capacity back as soon as they can get the MAX back flying. The problem is with Delta and even Uniteds better network in NYC, customers that may have been loyal to AA may have jumped ship, and given the bridges AA has burned in NYC they may not come back.
 
max999
Posts: 1138
Joined: Fri Dec 09, 2005 11:05 am

Re: Delta 3Q2019 earnings released

Thu Oct 10, 2019 4:53 pm

RDUDDJI wrote:
max999 wrote:
dcaproducer wrote:

FCM is working. I've gone from relying on upgrades to buying F on most of my flights. The fares are mostly reasonable and that is why they're selling the F seats instead of giving them to upgrades.


I think it's great that DL lowered the price of F and is selling more of those seats. Instead of listening to the Flyertalk crowd who think free upgrades are a god given right.


It cuts both ways. As someone who has spent ~$300K (of my company's money) on DL in the last few years, the devaluation of their FF benefits (i.e. upgrades, diminishing mileage value, etc.) over the last decade has made me less loyal. I still prefer DL, but now I just fly whoever is fastest and cheapest. I've prob moved 20-25% of my flying to other airlines. I've also gotten rid of the DL AMEX in favor of an airline agnostic rewards card.

DL seems to be leading the race to devalue FF benefits in the U.S. From a business perspective, I guess I can't blame them. Dollar for dollar, they likely make more money from all the ancillary revenue that peeps with no status bring (i.e. bag fees, FCM, C+, seat assignments, etc.). Time will tell whether watering down FF programs is a good move or not, but results like this make it look like it's working for them.


Delta has to strike the right balance between retaining loyalty by giving away perks and making money. I agree that whatever strategy they are doing is working as their premium revenue keeps going up and they continue to be the most profitable airline in the world.

My post was referring to the general consensus on Flyertalk that free upgrades are a right and not a privilege. And I also refer to the whiny tone used on Flyertalk when free upgrades aren't received.
All the things I really like to do are either immoral, illegal, or fattening.

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