Delta reports record Q2 2014 Profit
Jul 23, 2014, 9:36 am
#16
Suspended
Join Date: Jun 2009
Programs: Delta skymiles DM + 1MM
Posts: 8,144
not so sure this will happen. Don't forget, they are getting huge profit sharing checks each quarter. Congrats to Delta and all their great employees world wide. Keep UP the great work!
Jul 23, 2014, 9:37 am
#17
Join Date: Jul 2005
Location: National Capitol Region
Programs: Delta Dirt Medallion,AA,USairways, WN Rapid Rewards, National Emerald Club
Posts: 3,912
The contract has a set amendable date which can be pulled forward by mutual consent. If no new agreement is reached, work continues at last rates/rules while negotiation continues or the union is released by the NMB to seek 'self help', most confrontationally, a strike.
IIRC, the Delta pilots' contract amendable date is 12/2015.
IIRC, the Delta pilots' contract amendable date is 12/2015.
Jul 23, 2014, 9:43 am
#18
Join Date: Apr 2004
Location: Washington, DC
Posts: 1,309
????
because they expanded into saturated markets such as ICN-SEA, which already had 2 carriers serving it, thereby diluting the fares, that's why.
Or SEA-Asia in general is overall saturated with tons of seats on multiple carriers. Fares are cheap. All their expansion was in these markets. So PRASM goes down.
Basic economics.
Or SEA-Asia in general is overall saturated with tons of seats on multiple carriers. Fares are cheap. All their expansion was in these markets. So PRASM goes down.
Basic economics.
Jul 23, 2014, 9:47 am
#19
FlyerTalk Evangelist
Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
Posts: 31,789
Not only is the Japanese market still relatively weak, but AA and DL have been adding plenty of capacity to Asia, on top of all the capacity added by mainland China carriers. Lots more capacity = lower unit revenues.
No, the employees get profit sharing checks once per year, in February, based on the annual profits of the preceding year. Accounting rules require that the company accrue profit sharing expense every quarter.
No, the employees get profit sharing checks once per year, in February, based on the annual profits of the preceding year. Accounting rules require that the company accrue profit sharing expense every quarter.
Jul 23, 2014, 9:52 am
#20
FlyerTalk Evangelist
Join Date: Jun 2001
Programs: DL 1 million, AA 1 mil, HH lapsed Diamond, Marriott Plat
Posts: 28,190
There are a number of acceptable measures to indicate market saturation. Lots and lots of routes support more than two carriers at reasonable (meaning satisfactory ROIC as one indicator) fares.
Jul 23, 2014, 10:21 am
#21
Join Date: Dec 2012
Location: Charlotte
Programs: Hilton Diamond, Marriott Platinum Elite, AA Platinum Pro, Hertz Presidents
Posts: 1,214
http://news.delta.com/2014-07-23-Del...Quarter-Profit
Another round of record profits:
Net Income excluding specials: $889m = +8.4% margin
Net Income (GAAP): $801m (up 17%) = +7.5% margin
Operating Income excluding specials = $1.61 billion (+15.1% margin)
Operating Income = $1.58 billion (+14.9% margin)
Total Revenues = $10.62 billion (up 9%)
Q2 PRASM up 5.7% (mostly driven by DOmestic up 10% and Atlantic up 7%, while Pacific was down 3%).
Expect to have an operating margin (excluding specials) of +15 to 17% for Q3 2014.
Another round of record profits:
Net Income excluding specials: $889m = +8.4% margin
Net Income (GAAP): $801m (up 17%) = +7.5% margin
Operating Income excluding specials = $1.61 billion (+15.1% margin)
Operating Income = $1.58 billion (+14.9% margin)
Total Revenues = $10.62 billion (up 9%)
Q2 PRASM up 5.7% (mostly driven by DOmestic up 10% and Atlantic up 7%, while Pacific was down 3%).
Expect to have an operating margin (excluding specials) of +15 to 17% for Q3 2014.
Jul 23, 2014, 10:25 am
#22
Join Date: Dec 2012
Location: Charlotte
Programs: Hilton Diamond, Marriott Platinum Elite, AA Platinum Pro, Hertz Presidents
Posts: 1,214
Jul 23, 2014, 10:41 am
#24
Original Member and FlyerTalk Evangelist
Join Date: May 1998
Location: Kansas City, MO, USA
Programs: DL PM/MM, AA ExPlat, Hyatt Glob, HH Dia, National ECE, Hertz PC
Posts: 16,579
Jul 23, 2014, 11:48 am
#26
Join Date: Nov 2009
Posts: 1,601
Great job Delta Air Lines employees. Keep up the hard work! ^^
demands and DALPA? hahahahahahaha now that is funny.
Last contract the pilots got raises (but also took a cut in profit sharing).
Also frontline employee got the same raise for profit sharing idea as well as finally getting the 5 week of vacation back. (Delta was the only of the big 5 to have 4 weeks of vacation.)
Last contract the pilots got raises (but also took a cut in profit sharing).
Also frontline employee got the same raise for profit sharing idea as well as finally getting the 5 week of vacation back. (Delta was the only of the big 5 to have 4 weeks of vacation.)
Jul 23, 2014, 11:51 am
#27
Join Date: Jul 2010
Location: SAV
Programs: Atlanta's hometown airline. A bunch of hotel programs. PetSmart PetPerks.
Posts: 2,531
Good quarterly report, keep climbing!
Jul 23, 2014, 11:56 am
#28
Join Date: Jun 2008
Location: MRY
Programs: EVA, SQ, DL, AA, UA...
Posts: 117
because they expanded into saturated markets such as ICN-SEA, which already had 2 carriers serving it, thereby diluting the fares, that's why.
Or SEA-Asia in general is overall saturated with tons of seats on multiple carriers. Fares are cheap. All their expansion was in these markets. So PRASM goes down.
Basic economics.
Or SEA-Asia in general is overall saturated with tons of seats on multiple carriers. Fares are cheap. All their expansion was in these markets. So PRASM goes down.
Basic economics.
DL is now trying to match fares with the Asian carriers and unfortunately they have an inferior soft product. Until they can teach their FA's to keep restrooms clean, they always will.
Jul 23, 2014, 12:02 pm
#29
Join Date: Jul 2005
Location: National Capitol Region
Programs: Delta Dirt Medallion,AA,USairways, WN Rapid Rewards, National Emerald Club
Posts: 3,912
If the patient (Delta)had a heart attack (bankruptcy), does it make sense to challenge him with a marathon (large pay demands)? Although so far it looks like the patient has fully recovered and more
They also traded-off some scope too. The contract was approved by 62%, which depending on your viewpoint is either a comfortable margin or somewhat close to under 50%.
Ah yes the union/ non-union sword, hanging over Delta management's head, like some ever present Sword of Damocles.
Ah yes the union/ non-union sword, hanging over Delta management's head, like some ever present Sword of Damocles.