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DL747400
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DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 12:02 pm

Fantastic quarter for DL in a softening revenue environment. Looking forward to hearing the webcast. Hoping that the DoJ inquiry won't put a chill on the level of details shared in the Q&A.

http://finance.yahoo.com/news/delta-...ines-announces-june-113000170.html
From First to Worst: The history of Airliners.net.

All posts reflect my opinions, not those of my employer or any other company.
 
panamair
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 12:33 pm

Just a note that the $1.6B in your headline is the pre-tax income excluding specials.

Here is a summary of the numbers:

Total revenues: $10.71 billion
GAAP Operating Profit: $2.47 billion (23.1% margin)
Operating Profit excluding specials: $1.75 billion (16.3% margin)

Pre-Tax Profit: $2.37 billion (22.1% margin)
Pre-Tax Profit excluding specials: $1.64 billion (15.3% margin)

Net GAAP Profit: $1.485 billion (13.9% margin)
Net Profit excluding specials: $1.03 billion (9.6% margin)

Profit sharing for Q2 2015: $411m (up from $340m Q2 2014)
Total profit sharing so far for 2015: $547m (up from $439m in 1st half 2014)

Refinery Profit for Q2 2015: $90m (up from $13m last year)

Guidance for Q3 2015:
PRASM down 4.5 to 6.5%
Operating Margin (excluding specials): 19 to 21%
 
aaexecplat
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 12:48 pm

Block the ME3, block the ME3, our profits are cratering!
 
RL757PVD
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 12:55 pm

Not good enough! Cut more capacity to maximize profit!

Sincerely,

Wall Street
Experience is what you get when what you thought would work out didn't!
 
Prost
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 12:59 pm

Adding the Trainer losses in years past, the refurbishment cost, and purchase price, has DL recouped their investment yet? I'm not joining the 'refinery is a foolish investment' bandwagon, in fact, I think it's a good idea. I'm just curious if it has become a net positive.

As DL also had a higher portion of their fuel hedged (and had mark to market adjustments this quarter as well) did they fair better or worse than airlines that have none of their fuel hedged? I thought I read that fuel expenses increased 20% this quarter, but still hedging losses. I wonder how fuel expenses will affect AA who isn't hedged at all.
 
catiii
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 1:53 pm

Makes it hard to argue to the pilots that they shouldn't get profit sharing in the new contract...  
 
jetlanta
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 1:56 pm

Quoting Prost (Reply 4):
As DL also had a higher portion of their fuel hedged (and had mark to market adjustments this quarter as well) did they fair better or worse than airlines that have none of their fuel hedged? I thought I read that fuel expenses increased 20% this quarter, but still hedging losses. I wonder how fuel expenses will affect AA who isn't hedged at all.

I think the answer to this will be yes. Delta took a $600M loss in this quarter on hedge losses. AA will take none. If I understand correctly, next winter will be a more "apple-to-apples" comparison.
 
Max Q
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 2:21 pm

Amazing results, still surprised at their comparitively low cash position.
The best contribution to safety is a competent Pilot.


GGg
 
catiii
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 2:27 pm

Quoting Max Q (Reply 7):
Amazing results, still surprised at their comparitively low cash position.

Can't get the link to open. What is it reported at?
 
panamair
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 2:35 pm

Quoting catiii (Reply 5):
Makes it hard to argue to the pilots that they shouldn't get profit sharing in the new contract...

The T/A did not remove profit sharing...it changed certain parameters/thresholds.

Quoting Prost (Reply 4):
As DL also had a higher portion of their fuel hedged (and had mark to market adjustments this quarter as well) did they fair better or worse than airlines that have none of their fuel hedged? I thought I read that fuel expenses increased 20% this quarter, but still hedging losses. I wonder how fuel expenses will affect AA who isn't hedged at all.

As an example from the June 2015 traffic reports:

Fuel cost per gallon:
Delta: $2.40 - $2.45 (including hedging losses, etc.); estimates fuel would have been $1.70 - $1.75 without hedges
United: $2.17 (including hedging losses, etc.); estimates fuel would have been $1.98 without hedges
American: $1.88 - $1.93 (no hedges)

Delta has indicated that they are now 15% hedged for the rest of 2015, and expects fuel cost to be around $1.90 - $1.95 per gallon for the 2nd half of 2015.

As to how it will influence financial results, as an example, AA is expecting a 16-18% pre-tax margin in Q2, whereas DL reported a 15.3% pre-tax margin this quarter. Not saying that this difference is all driven by hedging costs, but it is helping AA quite a bit.

[Edited 2015-07-15 07:46:27]
 
panamair
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 2:38 pm

Quoting panamair (Reply 1):
GAAP Operating Profit: $2.47 billion (23.1% margin)
Operating Profit excluding specials: $1.75 billion (16.3% margin)

Correcting my own post - Operating profit excluding specials: approx $1.8 billion (16.8% margin)
 
nwadeicer
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 2:42 pm

Quoting RL757PVD (Reply 3):
Not good enough! Cut more capacity to maximize profit!

And change the staffing levels of 50-50 ready reserve to full time employees to 60-40 in favor of ready reserves!! Wait, they're going to start doing that.....Nevermind....
I miss the Red Tail
 
jetblue1965
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 2:44 pm

Quoting panamair (Reply 9):

Delta: $2.40 - $2.45 (including hedging losses, etc.); estimates fuel would have been $1.70 - $1.75 without hedges
United: $2.17 (including hedging losses, etc.); estimates fuel would have been $1.98 without hedges
American: $1.88 - $1.93 (no hedges)

Does that mean DL's refinery is saving them nearly 20 cents per gallon ? Because I find it amazing (and slightly shocking) that AA's no hedge price (88-93) is that much higher than DL's price after hedge losses are backed out (70-75)

Or is that a function of the taxation / delivery costs of where the airline source the bulk of their fuel ?
 
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enilria
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 3:01 pm

Quoting AAexecplat (Reply 2):
Quoting RL757PVD (Reply 3):
Quoting catiii (Reply 5):

I think after results this poor they need to eliminate first class, expand basic economy with no recline seats to add 2 rows, and sub-contract all the flight attendants to DGS. Sadly, I'm sure all have been examined.
 
Flighty
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 3:08 pm

Quoting Prost (Reply 4):
in fact, I think it's a good idea. I'm just curious if it has become a net positive.

The alternative scenario is not fully known. But if crack spreads have been low, they could theorize it has been beneficial. The direct profitability of a refinery was never the stated purpose of Delta Air Lines.



Quoting enilria (Reply 13):
I think after results this poor they need to eliminate first class, expand basic economy with no recline seats to add 2 rows, and sub-contract all the flight attendants to DGS. Sadly, I'm sure all have been examined.

After acquiring Alaska, DL should then acquire and dismantle Korean and Air France. Then they could just call themselves Airline.
 
panamair
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 3:28 pm

Quoting jetblue1965 (Reply 12):
Does that mean DL's refinery is saving them nearly 20 cents per gallon ? Because I find it amazing (and slightly shocking) that AA's no hedge price (88-93) is that much higher than DL's price after hedge losses are backed out (70-75)

Or is that a function of the taxation / delivery costs of where the airline source the bulk of their fuel ?

Probably all of the above, including the refinery. Remember that with the refinery, DL has more flexibility to source cheaper crude (e.g., Bakken) - an opportunity not afforded the other carriers...
 
panamair
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 3:47 pm

Some additional notes from the earnings call, nothing spectacular:

- ROIC of 23.5% over the last 12 months
- Q2 operations: 99.8% mainline completion factor, mainline on time 85.3%; 43 days of zero mainline cancellations
- Q4 domestic growth at 2%, international reductions at 3.5% (slightly more than previously announced 3% reduction). Not all of Africa weak - JNB showing positive signs
- Fees/additional revenues up 11% - First Class upsell up 17%, Comfort Plus upsell up around 30%
- Domestic paid First Class load factor at 57% (up 8 points). Goal is still 70%
- Domestic unit revenue drop in Q2 - mostly due to three markets (Chicago, Dallas, Orlando); domestic unit revenue flat in April, down 3% in May, down 3% in June.
- Domestic profit margin 23%; SEA capacity up 35% - maintaining RASM; pleased with performance of JFK-LAX/SFO transcons
- Connecting 700 pax/day domestic to international in SEA now; working with Sea-Tac to improve connection experience
- Total Q3 revenues will be down slightly compared to last year. July and September posting better numbers so far than August
- Refinery: $300m profit for last four quarters; expect another $60m profit for Q3
 
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enilria
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 3:49 pm

Quoting Flighty (Reply 14):

I think given the partnerships that would remain, Airlineflot would be more appropriate.  
 
jetblue1965
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 4:19 pm

Quoting panamair (Reply 16):
- Domestic paid First Class load factor at 57% (up 8 points). Goal is still 70%

I'm always curious as to how this is calculated. Do upgrade offers shown on the reservation or upgrade offers shown at check-in count towards this 57% ?
 
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gdg9
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 6:30 pm

Quoting RL757PVD (Reply 3):
Not good enough! Cut more capacity to maximize profit!

Sincerely,

Wall Street

Its a shame that greed is so rampant that this is probably a true comment.
@dfwtower
 
luv2cattlecall
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 6:45 pm

Quoting jetblue1965 (Reply 18):

Basically anything other than non-rev or complementary upgrades count.
.
 
NWBOS
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 6:48 pm

Quoting nwadeicer (Reply 11):
And change the staffing levels of 50-50 ready reserve to full time employees to 60-40 in favor of ready reserves!! Wait, they're going to start doing that.....Nevermind....

A shame if this is true.
 
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TVNWZ
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 6:54 pm

Too bad they are cancelling the $4B Boeing and Embraer order. Probably a negotiating ploy, but that got my attention.
 
jetblue1965
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 7:00 pm

Quoting Luv2cattlecall (Reply 20):
Quoting jetblue1965 (Reply 18):

Basically anything other than non-rev or complementary upgrades count.

So award tickets and mileage upgrades count too ?
 
deltairlines
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 7:35 pm

Quoting jetblue1965 (Reply 23):
So award tickets and mileage upgrades count too ?

Yes, since you are redeeming a "currency" for the right to sit confirmed in that seat. Systemwide/Regional Upgrade Certs also go into paid LF.
 
MaverickM11
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 8:28 pm

Quoting panamair (Reply 16):
- Refinery: $300m profit for last four quarters; expect another $60m profit for Q3

"39% lower market fuel prices and a $77 million increase in profit at the refinery offset nearly $600 million in settled hedge losses."

Didn't they have a huge hedge loss last quarter too?
I don't take responsibility at all
 
deltal1011man
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Wed Jul 15, 2015 8:28 pm

congrats to all the Delta employees world wide!
 
Max Q
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Thu Jul 16, 2015 6:24 am

Quoting catiii (Reply 8):
Can't get the link to open. What is it reported at?

$2.2 Billion.
The best contribution to safety is a competent Pilot.


GGg
 
AWACSooner
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Thu Jul 16, 2015 7:11 am

Not good enough...more fees, devalue SkyPeso some more...it's all about the shareholders!
 
RDUDDJI
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Thu Jul 16, 2015 12:58 pm

People that blame "Wall Street" for greed conveniently forget that "Wall Street" is made up of stockholders. Have a 401k? Have a pension? Have an IRA? Then *you* are "Wall Street" along with the rest of us.

Don't like the way a publicly company does business (i.e. being profitable)? Then buy enough shares to own 50% +1 and run it into the ground if you like.
Sometimes we don't realize the good times when we're in them
 
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modernArt
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Thu Jul 16, 2015 1:05 pm

Quoting AWACSooner (Reply 28):
Not good enough...more fees, devalue SkyPeso some more...it's all about the shareholders!

Actually the shareholders are getting shafted too. A paltry and pathetic $.09/share dividend…less than 1% yield. The worst P/E ratio of the Big 3 and the stock is off $6/share since January.
 
Marvinhsv
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Thu Jul 16, 2015 1:28 pm

Quoting catiii (Reply 5):
Makes it hard to argue to the pilots that they shouldn't get profit sharing in the new contract...  

That's pretty non-sense. Increasing salaries will also increase fixed costs and there will be a day when the economy is weak again. Maybe a bonus is better.
 
greenjet
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Thu Jul 16, 2015 10:55 pm

Quoting Max Q (Reply 7):
Amazing results, still surprised at their comparitively low cash position.

It's not necessarily a good thing to be sitting on a huge cash pile and it raises questions from analysts and investors. A large amount of cash in 1H 2015 has gone towards capex ($1.51B), repurchases of common stock ($1.35B), repayments of debt ($634M), short-term investments ($394M) and dividends ($147M). Much of this expenditure is discrentionary. Cash balance of $2.3B at June 30, 2015 is still very healthy.
 
BD338
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Thu Jul 16, 2015 11:50 pm

Quoting panamair (Reply 9):
Delta has indicated that they are now 15% hedged for the rest of 2015, and expects fuel cost to be around $1.90 - $1.95 per gallon for the 2nd half of 2015.

I'm so happy they passed along this huge saving in fuel costs to me the consumer in the same way they passed along the large increases of the previous few years...oh, wait.....
 
Max Q
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Fri Jul 17, 2015 5:06 am

Quoting greenjet (Reply 32):
It's not necessarily a good thing to be sitting on a huge cash pile and it raises questions from analysts and investors. A large amount of cash in 1H 2015 has gone towards capex ($1.51B), repurchases of common stock ($1.35B), repayments of debt ($634M), short-term investments ($394M) and dividends ($147M). Much of this expenditure is discrentionary. Cash balance of $2.3B at June 30, 2015 is still very healthy.

Disagree, a few years back, at a much smaller airline (Continental) we considered $3B as a minimum cash balance to take us through a downturn.


I can guarantee you bad times will be back and this amount of cash is miniscule for an Airline of DL's size, far below UA and AA's cash position.
The best contribution to safety is a competent Pilot.


GGg
 
LAXtoATL
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Fri Jul 17, 2015 5:21 am

Quoting Max Q (Reply 34):

Quoting greenjet (Reply 32):
It's not necessarily a good thing to be sitting on a huge cash pile and it raises questions from analysts and investors. A large amount of cash in 1H 2015 has gone towards capex ($1.51B), repurchases of common stock ($1.35B), repayments of debt ($634M), short-term investments ($394M) and dividends ($147M). Much of this expenditure is discrentionary. Cash balance of $2.3B at June 30, 2015 is still very healthy.

Disagree, a few years back, at a much smaller airline (Continental) we considered $3B as a minimum cash balance to take us through a downturn.


I can guarantee you bad times will be back and this amount of cash is miniscule for an Airline of DL's size, far below UA and AA's cash position.

DL's debt is far lower than AA and UA and therefore don't need huge amounts of cash to service that debt (that is the issue in a downturn and most other expenditures can be cut back in short order). Also, DL has a far better credit rating and if they need cash in a hurry they would be able to borrow at much lower rates. DL is definitely in the best financial health of all the US carriers and that is why they have the largest market cap.

Quoting modernart (Reply 30):

Quoting AWACSooner (Reply 28):
Not good enough...more fees, devalue SkyPeso some more...it's all about the shareholders!

Actually the shareholders are getting shafted too. A paltry and pathetic $.09/share dividend…less than 1% yield. The worst P/E ratio of the Big 3 and the stock is off $6/share since January.

Huh? DL's P/E ratio is three times higher than AA or UA. If you own the stick that is a great thing as people are willing to pay a huge premium for the stock versus the other airlines. If you are looking to buy it might not be great as you have to pay a huge premium to purchase the stock.
 
justloveplanes
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Fri Jul 17, 2015 2:36 pm

22% margins are going to get DoT's attention. 13%+ OK. 22%.....That's twice what Boeing does.
 
FlyBigDeltaJets
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Fri Jul 17, 2015 2:40 pm

Quoting justloveplanes (Reply 36):
22% margins are going to get DoT's attention. 13%+ OK. 22%.....That's twice what Boeing does.

That was a single quarter. Let's wait for the full year numbers before we get the pitchforks out.  
 
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TVNWZ
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Fri Jul 17, 2015 4:21 pm

Quoting Marvinhsv (Reply 31):
That's pretty non-sense. Increasing salaries will also increase fixed costs and there will be a day when the economy is weak again. Maybe a bonus is better.

Pay increases and bonuses are the economy. Going backwards on either makes the economy weak. There is less money to spend and less taxes to collect.
 
justloveplanes
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Fri Jul 17, 2015 6:15 pm

Quoting FlyBigDeltaJets (Reply 37):
That was a single quarter. Let's wait for the full year numbers before we get the pitchforks out.  

It's not me you have to worry about   !
 
deltal1011man
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Fri Jul 17, 2015 11:50 pm

Quoting justloveplanes (Reply 36):

22% margins are going to get DoT's attention.

care to explain why?

I don't know why people on here thinks the government has the power and right to cause a company lose money or only have certain margins but they simply do not.

Delta isn't the only airline posting margins that are in that ball park. NK is the margin leader in the world for airlines. Guess we need to break them up or sue for price fixing too?  
Quoting justloveplanes (Reply 36):
That's twice what Boeing does.

When did Boeing become the bench mark for how we judge other companies?

Quoting FlyBigDeltaJets (Reply 37):

That was a single quarter. Let's wait for the full year numbers before we get the pitchforks out.

exactly. Airlines are seasonal. Doesn't take a rocket scientist to figure out that Q2/Q3 margins are going to be really good while Q1/Q4 will be lower.
Yearly totals will be much lower than 22%. (which again, isn't even the highest in the world. Plenty of industries average 20% margins)
 
Max Q
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Sat Jul 18, 2015 3:07 am

Quoting LAXtoATL (Reply 35):
if they need cash in a hurry they would be able to borrow at much lower rates

If your back up plan for hard times is to borrow money you don't have a plan.
The best contribution to safety is a competent Pilot.


GGg
 
MaverickM11
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Sat Jul 18, 2015 3:18 am

Quoting Deltal1011man (Reply 40):
When did Boeing become the bench mark for how we judge other companies?

A duopoly with an all but guaranteed pipeline of projects from the government is the epitome of fair competition, unlike those big bad airlines that FOR ONCE are making money 
I don't take responsibility at all
 
FlyASAGuy2005
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Sat Jul 18, 2015 3:21 am

Quoting Max Q (Reply 34):
Quoting Max Q (Reply 41):

Max, I generally agree with you on a lot of topics but you're off. Comparing CO of the past to DL today is like comparing KMart and Walmart. PMCO didn't have near the assets or cash flow DL has. Remember, cash position can change by the quarter. If need be, they can and will slow down on their spend (capex, debt payments, etc). All discretionary. The number that's a tell tale sign is operating cash flow and their margins. DL has several options...above example, borrow money, sell/lease back a/c, the list goes on. The $2.3B number is static. It doesnt necessarily go up and down by the wuarter. They adjust discrectionary spending to keep the number in check. A company the size of DL does not need billions of billions of dollars in cash sitting in the bank.
What gets measured gets done.
 
DfwRevolution
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Sat Jul 18, 2015 3:30 am

Quoting Marvinhsv (Reply 31):
That's pretty non-sense. Increasing salaries will also increase fixed costs and there will be a day when the economy is weak again. Maybe a bonus is better.
Quoting TVNWZ (Reply 38):
Pay increases and bonuses are the economy. Going backwards on either makes the economy weak. There is less money to spend and less taxes to collect.

That's not how the economy works, TVNWZ.

If employees don't get pay raises or bonuses, then the money doesn't disappear. It goes to the bottom line as profit on Delta's income statement. That means it gets taxed at the corporate level instead of the individual level. It can be reinvested in the business or given back to the company owners (i.e. shareholders) as a dividend - which is also taxed.

It's not a matter of strengthening or weakening the overall economy. It's a matter of who gets to claim the value created by the airline. If wages go up, value shifts to the employees. If wages go down, value shifts to customers and shareholders.
I have a three post per topic limit. You're welcome to have the last word.
 
Prost
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Sat Jul 18, 2015 3:32 am

For those of you who are unhappy that DL (and I assume AA and UA when they report profits, but perhaps the vitriol is saved for DL profits) may I ask a question? When DL was suffering, prior to bankruptcy, did you feel a responsibility to maybe pass the hat around to collect money so they would at least break even?

No?

Then why on earth do you feel obliged to say how much profit DL is allowed to make? I get it that your travel costs more, but if you find these profits untenable, I'll assume that you won't fly with DL. I wish it's not the case, as I'm looking forward to serving you, but I find it terribly discouraging to have people want to regulate my industry. It never works.
 
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pu
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Sun Jul 19, 2015 1:54 am

Quoting Max Q (Reply 34):
far below UA and AA's cash position.

....and DL is far far below UA and AA's debt position.

In a slowdown, DL can more easily wrench down the operation, do less flying hours or even cause layoffs. They are starting to act like a real blue chip company with the ability to adjust their costs in line with demand....Like most any normal business! But that huge recurring debt payment at UA and AA is there whether they fly less or not.....



Pu
 
MaverickM11
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Fri Jul 24, 2015 4:03 pm

Quoting jetlanta (Reply 6):
I think the answer to this will be yes. Delta took a $600M loss in this quarter on hedge losses. AA will take none. If I understand correctly, next winter will be a more "apple-to-apples" comparison.

DL is forecasting $1.90/gal for Q3, while AA is forecasting $1.73. And AA has no hedges or facilities to worry about  
I don't take responsibility at all
 
jetlanta
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Fri Jul 24, 2015 8:43 pm

Quoting MaverickM11 (Reply 47):
DL is forecasting $1.90/gal for Q3, while AA is forecasting $1.73. And AA has no hedges or facilities to worry about  

It will be interesting to how that difference plays out on the bottom line. It is certainly much narrower than the past few quarters.
 
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RE: DL Announces June, 2015 Profit USD $1.6 Billion

Sat Jul 25, 2015 3:51 am

Quoting Prost (Reply 45):
Then why on earth do you feel obliged to say how much profit DL is allowed to make? I get it that your travel costs more, but if you find these profits untenable, I'll assume that you won't fly with DL. I wish it's not the case, as I'm looking forward to serving you, but I find it terribly discouraging to have people want to regulate my industry. It never works.

The same people that complain how much profit DL (or any airline) makes, are the same ones that don't care what the airline's costs are as long as their fares are cheap. For some odd reason, these people don't care if the airline makes a profit at all.......all the way up until the time the airline files bankruptcy and it folds. Then they complain that they can't fly on their favorite airline, anymore.
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