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panamair
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Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 11:43 am

It's earnings season again and Delta kicked it off for the airlines....

http://finance.yahoo.com/news/delta-...nes-announces-march-110000608.html

Operating Revenues: $9.25 billion (down 1.5% from 2015)
Operating Expenses: $7.71 billion (down 3.0% from 2015)

Operating Profit: $1.54 billion (16.6% margin)
Operating Profit excluding specials: approx $1.67-$1.68 billion (18+% margin)

Pre-Tax Profit: $1.43 billion (15.5% margin)
Pre-Tax Profit excluding specials: $1.56 billion (16.9% margin)

Net Profit: $946 million (10.2% margin)
Net Profit excluding specias: $1.03 billion (11.1% margin)

EPS Analyst Estimate: $1.29 - $1.30
EPS Actual: $1.32

PRASM down 4.6%
Profit Sharing: $272 million (up from $136m for Q1 2015)
Contributed $825m cash and $350m stock to pension plans; this plus another $135m contribution in April completes all pension funding required for year.

Q2 2016 Projections:

Operating Margin (excluding specials): 21 - 23%
PRASM: down 2.5 to 4.5%
 
winginit
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 12:26 pm

Quoting panamair (Thread starter):
PRASM down 4.6%

This will be the number to watch as other majors report, and it's certainly what the market is going to be glued to. That's pretty staggering, and I'd wager that'll be the best number of the US3+WN.
 
panamair
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 12:56 pm

Quoting winginit (Reply 1):
This will be the number to watch as other majors report, and it's certainly what the market is going to be glued to. That's pretty staggering, and I'd wager that'll be the best number of the US3+WN.

Based on their recent March traffic reports, guidance for Q1 PRASM is as follows:

- AA: down 7 to 8%
- UA down 7.25 to 7.75%
- WN approx flat.

[Edited 2016-04-14 05:57:03]

[Edited 2016-04-14 06:07:39]
 
winginit
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 1:05 pm

Quoting panamair (Reply 2):
WN approx flat.

I'd be shocked and hugely impressed if that turned out to hold.
 
jetlanta
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 1:20 pm

Quoting winginit (Reply 3):
I'd be shocked and hugely impressed if that turned out to hold.

Most of the unit revenue declines for U.S. carriers are being driven by foreign markets. WN is well-insulated from that exposure.
 
deltal1011man
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 1:28 pm

Quoting panamair (Thread starter):
Operating Profit excluding specials: approx $1.67-$1.68 billion (18+% margin)

wow. This is just crazy.

Congrats to all the Delta employees. Looks like this years profit sharing checks should be nice and fat.  
 
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tlecam
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 1:44 pm

PRASM - -4.6% - Delta is guiding that 2 points of that are due to foreign currency headwinds, with the remaining from capacity increases.

It's a pretty interesting revenue and cost environment; CASM is up, but there are foreign currency gains there as well. Delta is saying that foreign currency and domestic re-fleeting offset cost increases due to profit sharing, product investment and operations investments, all of which moderated CASM increases. They also said that CASM performance should improve in the remaining quarters (ex-fuel).

Fuel costs are also very low.
BOS-LGA-JFK | A:319/20/21, 332/3, 346 || B:717, 735, 737, 738, 739, 752, 753, 762, 763, 764, 787, 772, 744 || MD80, MD90
 
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william
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 1:50 pm

What is Delta's long term debt? Be interested in how fast they are paying it down.

[Edited 2016-04-14 06:50:51]
 
winginit
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 1:50 pm

Quoting jetlanta (Reply 4):
Most of the unit revenue declines for U.S. carriers are being driven by foreign markets. WN is well-insulated from that exposure.

That's true, but they aren't insulated from ULCC expansion, which is also a contributing factor.
 
a380787
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 1:53 pm

Quoting winginit (Reply 8):
That's true, but they aren't insulated from ULCC expansion, which is also a contributing factor.

They have been heavily insulated from the recent fare wars of Dallas and Chicago. So far there's scant evidence that either Sun Country or Spirit is moving the needle at all at MSP and DTW respectively.
 
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tlecam
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 1:56 pm

Long Term Debt
Dec '15- 6,766,000
Dec '14 - 8,477,000
Dec '13 - 9,795,000
BOS-LGA-JFK | A:319/20/21, 332/3, 346 || B:717, 735, 737, 738, 739, 752, 753, 762, 763, 764, 787, 772, 744 || MD80, MD90
 
deltal1011man
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 2:03 pm

Quoting william (Reply 7):
What is Delta's long term debt? Be interested in how fast they are paying it down.

$7B at the end of Q1.

Goal is to be down to 4B at the end of 2018 I think.


but remember, DL has a pretty big pension obligation compared to the other US4.
 
deltal1011man
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 2:11 pm

just a note,
they just said on the investor call that the TATL JV will be headquartered in AMS. No idea what that means but it was in Ed's opening remarks.

Also it sounds like getting to PRASM flat(to up) might be set back a few months but still expected in 2016. (i think they originally thought it would happen in Q2 so maybe its expected in Q3.)

Also nothing to say on the potential narrowbody order.

[Edited 2016-04-14 07:29:00]
 
Flighty
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 2:15 pm

So much for Q1 being a terrible quarter. Congratulations, Delta.
 
dc10lover
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 2:36 pm

Why endure the nightmare and congestion of LAX when BUR, LGB, ONT & SNA is so much easier to fly in and out of. Same with OAK & SJC when it comes to SFO.
 
dc10lover
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 2:44 pm

Why endure the nightmare and congestion of LAX when BUR, LGB, ONT & SNA is so much easier to fly in and out of. Same with OAK & SJC when it comes to SFO.
 
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redzeppelin
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 2:56 pm

I have a very simple question about airline accounting. If I buy a ticket during Q1, for travel during Q2, is that revenue booked in Q1 or in Q2? I assume that it is booked in Q2, but want to be sure. For reporting purposes, especially in regard to RASM calculations, it seems like the revenue should be reported based on the day of flight. In that case, the revenue for a round-trip ticket could be split across two quarters. Is that how they do it?
Thanks.
 
wingman
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:06 pm

Can someone please provide the "PRASM for Idiots" highlights? Even just the acronym breakdown and basic calculation components would be nice. Thanks.
 
Flighty
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:09 pm

Quoting redzeppelin (Reply 16):
is that revenue booked in Q1 or in Q2

It is booked in Q2. This is because the airline has to account for each market's monthly profitability (for planning). In turn, the quarterly profitability needs to be the sum of flight profits, special items and other activity. If it weren't, auditors would say you're planning based on one profitability but telling the stock market something else.

[Edited 2016-04-14 08:10:28]
 
bobnwa
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:09 pm

Quoting deltal1011man (Reply 5):
Congrats to all the Delta employees. Looks like this years profit sharing checks should be nice and fat.  

The profit sharing should should be excellent unless the pilots try to hijack it all for themselves
 
deltal1011man
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:24 pm

Quoting bobnwa (Reply 19):

The profit sharing should should be excellent unless the pilots try to hijack it all for themselves

I think you need to educate yourself on what the pilots want....more so what the pilots don't want taken from the current contract, i.e. DL already pays for, before you make comments like this.

They aren't asking for a lot of new things, they just don't believe the company should be taking from employees when they company is posting results like they are.
I agree with them 100%.
 
a380787
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:26 pm

Quoting wingman (Reply 17):

Can someone please provide the "PRASM for Idiots" highlights? Even just the acronym breakdown and basic calculation components would be nice. Thanks.

Passenger Revenue (exc cargo) per Available Seat Mile. I think airline-induced fuel surcharge and misc passenger-related ancillaries should count into that metric. This excludes all government-imposed fees and taxes.
 
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redzeppelin
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:31 pm

Quoting wingman (Reply 17):
Can someone please provide the "PRASM for Idiots" highlights? Even just the acronym breakdown and basic calculation components would be nice. Thanks.

PRASM = Passenger Revenue per Available Seat-Mile. It's a way of measuring how much money is earned from passengers, compared to the total capacity offered by the airline.

Simple Example: An airplane with 150 seats flies a 1000 mile route. That flight offers 150,000 available seat-miles. Now suppose there are 135 people on the plane, who each spent an average of $100 on tickets/fees/etc for that segment. That makes $13,500 in passenger revenue. PRASM = $13,500/150,000 = $0.09. Now, add that up for all flights operated in the quarter...
 
a380787
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:33 pm

Quoting wingman (Reply 17):

Can someone please provide the "PRASM for Idiots" highlights? Even just the acronym breakdown and basic calculation components would be nice. Thanks.

if you come from the hospitality industry, "PRASM" is similar to what the hoteliers use as "RevPAR" while "yield" would be similar to "ADR"
 
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mayor
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:37 pm

Quoting deltal1011man (Reply 20):
they just don't believe the company should be taking from employees

"Employees", meaning the pilots, I would imagine. I don't picture them much worried about anyone else.  
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
 
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CALTECH
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:38 pm

Quoting deltal1011man (Reply 5):
wow. This is just crazy.

Congrats to all the Delta employees. Looks like this years profit sharing checks should be nice and fat.  

Nice. Hat's off to Delta Air Lines and Delta employees. The fatter the better.

Quoting deltal1011man (Reply 20):
They aren't asking for a lot of new things, they just don't believe the company should be taking from employees when they company is posting results like they are.
I agree with them 100%.

Airlines making money, good times, but they are taking from employees. Then if things go bad, they will want more. It is not right.
You are here.
 
deltal1011man
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:42 pm

Quoting mayor (Reply 24):

"Employees", meaning the pilots, I would imagine. I don't picture them much worried about anyone else.

believe it or not, the pilots aren't some big evil empire looking to take down the company.
They would prefer we all do well. I have yet to meet a pilot who wishes bad on the other employees (matter of fact I know some pilots who are very active in some of the things they do for other airline employees.......but I'm not getting into that kind of stuff here)

but no they don't negotiate for everyone else. If everyone else wants to negotiate then they should vote in a union and do so.

Quoting a380787 (Reply 21):

Passenger Revenue (exc cargo) per Available Seat Mile. I think airline-induced fuel surcharge and misc passenger-related ancillaries should count into that metric. This excludes all government-imposed fees and taxes.

I agree completely with this.
 
PGNCS
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:48 pm

Quoting mayor (Reply 24):
Quoting deltal1011man (Reply 20): they just don't believe the company should be taking from employees
"Employees", meaning the pilots, I would imagine. I don't picture them much worried about anyone else.

Nor is it their job to. ALPA represents the pilots, period.

As you know, Delta historically has been very generous in giving other work groups things that pilots have successfully negotiated for, seemingly to arrest jealousy between departments and make union representation look less palatable to other groups. It was the Delta pilots who lost their pensions in Chapter 11 as opposed to the other groups, uncoincidentally. But you knew that already.
 
bobnwa
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:51 pm

Quoting deltal1011man (Reply 20):
I think you need to educate yourself on what the pilots want....more so what the pilots don't want taken from the current contract, i.e. DL already pays for, before you make comments like this.

Didn't realize you were such a big pilots fan. I do think I am fairly well familiar with what the pilots want the pilots want and I believe it is excessive. By the way I also believe this about all pilots for all the major carriers who believe the purpose of an airline is to give them airplanes to fly. how much better can you get being in the 98th percentile of all US wage earners?
 
peanuts
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:53 pm

Quoting deltal1011man (Reply 12):
they just said on the investor call that the TATL JV will be headquartered in AMS. No idea what that means but it was in Ed's opening remarks.

I'm not certain but I think this has something to do with DL's plan to account certain/increasing revenue streams as coming from "abroad" for tax reasons.
It's been a sport by corporations to find legal ways (or loopholes) to decrease tax burdens. Apple and Starbucks have been taken under the loop recently in Europe for doing just that.
I'm not saying DL's plan is illegal. They're just trying to find ways to decrease that burden.
 
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mayor
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:53 pm

Quoting PGNCS (Reply 27):
It was the Delta pilots who lost their pensions in Chapter 11 as opposed to the other groups, uncoincidentally. But you knew that already.

Ah, yes.........the pilots as martyrs, them being the only ones that have sacrificed over the years.  


They may have kept their pensions (although, frozen) but some DID lose their jobs and some DID get reductions in pay.
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
 
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coronado
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 3:56 pm

Quoting redzeppelin (Reply 16):
I have a very simple question about airline accounting. If I buy a ticket during Q1, for travel during Q2, is that revenue booked in Q1 or in Q2? I assume that it is booked in Q2, but want to be sure. For reporting purposes, especially in regard to RASM calculations, it seems like the revenue should be reported based on the day of flight. In that case, the revenue for a round-trip ticket could be split across two quarters. Is that how they do it?
Thanks.

The way I understand it when the ticket is sold all it creates is a 'Air Traffic Liability', for example on the March 31 2016 10Q Delta lists this item as standing at US$5.988 billion. Technically only when the flight is completed the revenue is booked, any time up until that happens, that prepaid ticket could be considered fully refundable, i.e. that is why it is treated as a liability. Even 'non refundable' tickets are technically fully refundable if the carrier fails to deliver the product! You may notice that during certain times of the year an airline, depending on when holidays fall may include a statement that RASM was increased or decreased in a specific quarter because of how holiday peak traffic may or may not have bridged over (shifted) from one reporting period to another, compared to the year before, depending on how the holidays fall. In simple terms if a New Years eve one year falls on a Thursday, there may be more RASM shifting into the January quarter as people take advantage of the long holiday weekend to plan their holiday travel (return trips) into January. An earlier in week New Years Eve may result in less travel-- the "I cant go to so and so place for New Years Eve this year because I don't want to use (or don't have) vacation days'', so I will just go for a longer Christmas.
The Original Coronado: First CV jet flights RG CV 990 July 1965; DL CV 880 July 1965; Spantax CV990 Feb 1973
 
winginit
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 4:07 pm

Quoting a380787 (Reply 9):
They have been heavily insulated from the recent fare wars of Dallas and Chicago. So far there's scant evidence that either Sun Country or Spirit is moving the needle at all at MSP and DTW respectively.

Are you talking about DL or WN?

What you've said is true for DL, but what will move the needle on that front is NK's ASMs in and out of ATL up 172.4% Q1 2016 versus 2015. Having said that I was referring to WN.
 
PGNCS
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 4:09 pm

Quoting mayor (Reply 30):
Quoting PGNCS (Reply 27): It was the Delta pilots who lost their pensions in Chapter 11 as opposed to the other groups, uncoincidentally. But you knew that already.
Ah, yes.........the pilots as martyrs, them being the only ones that have sacrificed over the years.

I'm not claiming they are martyrs, but what I said was completely correct. I never said any employee groups at any airline in Chapter 11 didn't suffer, but no employee group at Delta took larger salary, retirement, or benefit cuts than the pilots did. So when you said in the post I responded to that the pilots don't care about other employee groups I believe your point is irrelevant. It's not that the pilots don't care, it is simply that ALPA only represents the pilots; they do not negotiate for any other employee group. For the record, I am not a fan of ALPA, I am just making a factual point.

Quoting mayor (Reply 30):
They may have kept their pensions (although, frozen) but some DID lose their jobs and some DID get reductions in pay.

Yes, and? The pilots had by far the most dramatic pay and benefit reductions, and hundreds were furloughed in the post-9/11 decline.

At any rate, congratulations to Delta on a solid quarter (the actual point of this thread); I will be watching PRASM trends at other airlines as they report.
 
PIEAvantiP180
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 4:16 pm

Congratulations to DL and it's employees, another great quarter. If anyone has listened to the call, any word or questions from the analysts regarding the rumored narrow body order?
 
panamair
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 4:20 pm

Quoting peanuts (Reply 29):
I'm not saying DL's plan is illegal. They're just trying to find ways to decrease that burden.

Yes, in anticipation of when they will have to pay real cash taxes again (IIRC, it may be next year?)

Quoting PIEAvantiP180 (Reply 34):
any word or questions from the analysts regarding the rumored narrow body order?

No decision made yet..will update analysts in May on aircraft spending....

http://finance.yahoo.com/news/delta-...no-decisions-single-155406263.html
 
bourbon
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 4:25 pm

Quoting PGNCS (Reply 33):
Yes, and? The pilots had by far the most dramatic pay and benefit reductions, and hundreds were furloughed in the post-9/11 decline.

At any rate, congratulations to Delta on a solid quarter (the actual point of this thread); I will be watching PRASM trends at other airlines as they report.
Quoting PGNCS (Reply 33):
Yes, and? The pilots had by far the most dramatic pay and benefit reductions, and hundreds were furloughed in the post-9/11 decline.

At any rate, congratulations to Delta on a solid quarter (the actual point of this thread); I will be watching PRASM trends at other airlines as they report.

Pilots still kept 6 figure salaries while 91% of the rest of the company employees were happy to just make 50k.
 
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mayor
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 4:30 pm

Quoting PGNCS (Reply 33):

Quoting mayor (Reply 30):
Quoting PGNCS (Reply 27): It was the Delta pilots who lost their pensions in Chapter 11 as opposed to the other groups, uncoincidentally. But you knew that already.
Ah, yes.........the pilots as martyrs, them being the only ones that have sacrificed over the years.

I'm not claiming they are martyrs, but what I said was completely correct. I never said any employee groups at any airline in Chapter 11 didn't suffer, but no employee group at Delta took larger salary, retirement, or benefit cuts than the pilots did. So when you said in the post I responded to that the pilots don't care about other employee groups I believe your point is irrelevant. It's not that the pilots don't care, it is simply that ALPA only represents the pilots; they do not negotiate for any other employee group. For the record, I am not a fan of ALPA, I am just making a factual point.

I'm guessing that a reduction in pay and benefits for ACS, etc. is more painful to them than similar reductions for the pilots (who MIGHT have to give up that beachfront condo, as a result). For everyone else, those reductions might mean that they have to reduce the size of their ONLY home and get a second job, on top of it to survive.


As far as the pilots only caring about themselves, maybe that's part of the problem. During the BK, I can remember any number of pilots that were ok with throwing other employees under the bus when it came to the survivability of the company. BTW, anything done in BK as far as reductions was done for just THAT......so the company would survive.........I think we can see, now, that it was worth it.
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
 
deltal1011man
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 4:56 pm

Quoting CALTECH (Reply 25):

Airlines making money, good times, but they are taking from employees. Then if things go bad, they will want more. It is not right.

I agree. Its even worse for you guys. I am very happy y'all shot down your TA. It would have been bad for anyone who is a mechanic in this industry.

Quoting bobnwa (Reply 28):

Didn't realize you were such a big pilots fan.

Im a fan of labor in general. Its a give and take industry. Management gives in good times takes in bad. I think we all get that
but the airlines are seeing the best numbers they have ever seen and in some cases they are still acting like they are bankrupt. Nope, labor made the sacrifices 10 years ago now its time to give back some.

Quoting bobnwa (Reply 28):
I do think I am fairly well familiar with what the pilots want the pilots want and I believe it is excessive.

I honestly don't think you have a clue bob.
So you think, for example, DL keeping its existing scope on the Trans-atlantic JV is excessive and the company should be allowed to outsource more flying?

Quoting bobnwa (Reply 28):
By the way I also believe this about all pilots for all the major carriers who believe the purpose of an airline is to give them airplanes to fly. how much better can you get being in the 98th percentile of all US wage earners?

pay isn't everything in life. You and most keep focusing on pay but again, it was outsourcing and work rule changes (things the company already does mind you) that got the last TA shot down.
It had great pay in the contract, but all of that pay got wiped away in work rule changes.

Quoting PGNCS (Reply 27):

Nor is it their job to. ALPA represents the pilots, period.

exactly.

Quoting PGNCS (Reply 27):

As you know, Delta historically has been very generous in giving other work groups things that pilots have successfully negotiated for, seemingly to arrest jealousy between departments and make union representation look less palatable to other groups. It was the Delta pilots who lost their pensions in Chapter 11 as opposed to the other groups, uncoincidentally. But you knew that already.

exactly.

Quoting mayor (Reply 30):

Ah, yes.........the pilots as martyrs, them being the only ones that have sacrificed over the years.

PGNCS didn't say that at all.

Quoting mayor (Reply 30):
hey may have kept their pensions (although, frozen) but some DID lose their jobs and some DID get reductions in pay.

And pilots didn't take pay cuts, or saw an increase in outsourcing?

Quoting bourbon (Reply 36):

Pilots still kept 6 figure salaries while 91% of the rest of the company employees were happy to just make 50k.

first that number isn't right
but second thats alright. If you want more money go to school do all the work they did, cut your teeth in the Military and/or a regional then you can make the money too.

Quoting mayor (Reply 37):

I'm guessing that a reduction in pay and benefits for ACS, etc. is more painful to them than similar reductions for the pilots (who MIGHT have to give up that beachfront condo, as a result). For everyone else, those reductions might mean that they have to reduce the size of their ONLY home and get a second job, on top of it to survive.

So because a pilot makes more they should take more of a cut? we shouldn't look at things like quality of life and education/training just at how much they make at that moment?
uh....hell no.
just like I said about, if someone in ACS wants more they should do more for it. its pretty simple.

Quoting mayor (Reply 37):

As far as the pilots only caring about themselves, maybe that's part of the problem. During the BK, I can remember any number of pilots that were ok with throwing other employees under the bus when it came to the survivability of the company. BTW, anything done in BK as far as reductions was done for just THAT......so the company would survive.........I think we can see, now, that it was worth it.

boy you need to lower your head and stop looking down your noise so much.

How many times did you ask the company to dump your pension on PBCG Mayor?
 
deltal1011man
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RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 4:58 pm

Quoting peanuts (Reply 29):

I'm not certain but I think this has something to do with DL's plan to account certain/increasing revenue streams as coming from "abroad" for tax reasons.

Thats exactly what it is. I mean I don't know what that plan means for employees. Plenty of rumors out there, some good, so really bad.

Quoting peanuts (Reply 29):

It's been a sport by corporations to find legal ways (or loopholes) to decrease tax burdens. Apple and Starbucks have been taken under the loop recently in Europe for doing just that.
I'm not saying DL's plan is illegal. They're just trying to find ways to decrease that burden.

I can't blame them one bit. I would be doing the exact same thing.
 
surfdog75
Posts: 270
Joined: Thu Nov 17, 2005 5:39 am

RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 5:01 pm

Quoting bobnwa (Reply 19):
The profit sharing should should be excellent unless the pilots try to hijack it all for themselves

Do you mean the pilots, who while being beat down during pre bankruptcy and bankruptcy, negotiated profit sharing with management, who then gave it to the rest of the employee groups as well? In case people don't remember the DL pilots had their pensions liquidated and replaced with a small lump amount depending on seniority, NWA pilots had their's frozen. Profit sharing was negotiated by ALPA as a chance to recoup a small portion of those lost pensions. Everyone suffered and sacrificed during those bad times, we shouldn't feel bad at all about recouping a small amount of our investment in making the company successful again. After all they seem very happy to buy back billions in stock these days.

[Edited 2016-04-14 10:02:50]

[Edited 2016-04-14 10:06:08]
 
MSPNWA
Posts: 3698
Joined: Thu Apr 23, 2009 2:48 am

RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 5:40 pm

Solid revenue results by DL. I don't see anything too noteworthy in the announcement. No aircraft order announcement. About the only thing I though was interesting is what they said about tackling decreasing PRASM. Maybe we've seen the end of significant capacity increases for the time being.

So although the revenue side looked good, I do have questions about the cost side. The CFO indicated that CASM ex-fuel went up over 2%, not including the additional profit sharing expense YOY. And that's in an environment of growth, which can help CASM. I think that's 3-4 quarters in a row now of concerning cost performance for DL.

Quoting winginit (Reply 3):
I'd be shocked and hugely impressed if that turned out to hold.

I would too. Flat would be a big accomplishment and probably lead to an impressive quarter.
 
bobnwa
Posts: 4514
Joined: Fri Dec 22, 2000 12:10 am

RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 5:45 pm

Quoting deltal1011man (Reply 38):
but the airlines are seeing the best numbers they have ever seen and in some cases they are still acting like they are bankrupt. Nope, labor made the sacrifices 10 years ago now its time to give back some.

The discussion is about DL pilots and Delta not the airline industry vs the Airlines collectively

Quoting deltal1011man (Reply 38):
I honestly don't think you have a clue bob.

did you have a clue when you and I had our first round of discussions on this forum a while back?
 
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seabosdca
Posts: 6607
Joined: Sat Sep 01, 2007 8:33 am

RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 5:47 pm

Airline reporting would be considerably more straightforward and easy to understand if it were in terms of seat block minutes rather than seat miles.
 
deltal1011man
Posts: 5400
Joined: Mon Sep 19, 2005 9:17 am

RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 5:52 pm

Quoting bobnwa (Reply 42):

The discussion is about DL pilots and Delta not the airline industry vs the Airlines collectively

That is Delta vs the DL pilots.
Again that TA was full of pilot give backs. Stop just looking at just pay. Sure that is a part of it but that isn't all of it.
 
burnsie28
Posts: 5299
Joined: Mon Aug 02, 2004 1:49 am

RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 8:05 pm

Quoting bobnwa (Reply 28):
Didn't realize you were such a big pilots fan. I do think I am fairly well familiar with what the pilots want the pilots want and I believe it is excessive. By the way I also believe this about all pilots for all the major carriers who believe the purpose of an airline is to give them airplanes to fly. how much better can you get being in the 98th percentile of all US wage earners?

You do realize that it got voted down earlier not because of the pay, but other issues in the contract right?
 
jasoncrh
Posts: 788
Joined: Wed Jun 08, 2005 10:29 pm

RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 8:08 pm

Yes - basic accounting. You recognize revenue once a service is performed. Not before. So if I buy a ticket now (april) for travel in June, the airline doesn't actually "see" the revenue and recognize it as such until my flight is complete.

Quoting Flighty (Reply 18):
It is booked in Q2. This is because the airline has to account for each market's monthly profitability (for planning). In turn, the quarterly profitability needs to be the sum of flight profits, special items and other activity. If it weren't, auditors would say you're planning based on one profitability but telling the stock market something else.
 
User avatar
TheRedBaron
Posts: 3276
Joined: Tue Mar 29, 2005 6:17 am

RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 8:24 pm

Congrats to all employees and management at DL for a very profitable quarter, another 3 shovels to get out of the hole... now lets bring on 130 Cseries !!!.

TRB
The best seat in a Plane is the Jumpseat.
 
User avatar
TVNWZ
Posts: 2290
Joined: Fri Feb 17, 2006 9:28 am

RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 8:57 pm

Quoting TheRedBaron (Reply 47):

And thank you all Delta customers for flying Delta. Without you spending tons of money Delta would not be where it is no matter who the employees are or how hard they work.
 
User avatar
mayor
Posts: 6218
Joined: Sun Mar 09, 2008 3:58 pm

RE: Delta Reports Q1 2016 Profit

Thu Apr 14, 2016 9:21 pm

Quoting deltal1011man (Reply 38):

So because a pilot makes more they should take more of a cut? we shouldn't look at things like quality of life and education/training just at how much they make at that moment?

No, I'm saying that just because they're a pilot, they shouldn't think their sacrifice is any more or less than anyone else. They didn't get the nickname "Skygods" by accident.

Quoting deltal1011man (Reply 38):

How many times did you ask the company to dump your pension on PBCG Mayor?

None, and you know that. I took early retirement BEFORE the BK, without even know the filing was coming.
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen

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