Community
Wiki Posts
Search

Delta reports record Q2 2014 Profit

Thread Tools
 
Search this Thread
 
Old Jul 23, 2014, 12:11 pm
  #31  
 
Join Date: Jul 2005
Location: National Capitol Region
Programs: Delta Dirt Medallion,AA,USairways, WN Rapid Rewards, National Emerald Club
Posts: 3,912
Originally Posted by pbarnette
Don't worry. It can't last and DL will be in the tubes as soon as all the HVCs leave.
Maybe Richard Anderson should send Gary Kelly a fruit basket and a bottle of veuve clicquot for the gift that is Atlanta.
hazelrah is offline  
Old Jul 23, 2014, 12:12 pm
  #32  
Original Poster
 
Join Date: Jul 2004
Programs: DL; AA; UA; CO; LHLX; NZ; QR; EK; BA
Posts: 7,408
Originally Posted by jasondc
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.
Not really; the biggest culprit in the Pacific was Japan and the weak Yen as usual; Japan traffic dipped quite a bit in Q2 as the weak yen deterred travel. SEA international PRASM was up 2% despite 30% capacity growth, while SEA domestic PRASM was up 6% despite a 25% capacity growth.
ClipperDelta is offline  
Old Jul 23, 2014, 12:15 pm
  #33  
Original Poster
 
Join Date: Jul 2004
Programs: DL; AA; UA; CO; LHLX; NZ; QR; EK; BA
Posts: 7,408
Originally Posted by scottsam66
Guess that change to giving TCON upgrades really paid off....
Sure did! The NYC transcons showed double-digit PRASM gains during the quarter despite a 12% capacity increase
ClipperDelta is offline  
Old Jul 23, 2014, 12:30 pm
  #34  
FlyerTalk Evangelist
 
Join Date: Sep 2007
Location: BOS
Programs: DL DM 2MM, Marriott LT Titanium, Hertz PC, Avis PC
Posts: 15,198
Originally Posted by pbarnette
Don't worry. It can't last and DL will be in the tubes as soon as all the HVCs leave.
Being sarcastic, or serious? Isn't really any place else that is any better for HVCs to run to...
rylan is offline  
Old Jul 23, 2014, 12:31 pm
  #35  
FlyerTalk Evangelist
 
Join Date: Sep 2007
Location: BOS
Programs: DL DM 2MM, Marriott LT Titanium, Hertz PC, Avis PC
Posts: 15,198
Good for DL, bad for the consumer and businesses who are paying through the nose.
rylan is offline  
Old Jul 23, 2014, 12:38 pm
  #36  
Suspended
 
Join Date: Sep 2005
Location: SEA
Programs: UA Silver, BA Gold, DL Gold
Posts: 9,779
Originally Posted by rylan
Being sarcastic, or serious? Isn't really any place else that is any better for HVCs to run to...
Just playing off of the comments that many have written over the years about how DL is driving traffic away, etc.
pbarnette is offline  
Old Jul 23, 2014, 12:41 pm
  #37  
FlyerTalk Evangelist
 
Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
Posts: 31,789
IMO, trading away profit sharing for fixed percentage raises is a fools' game, but the DL pilots (and AA pilots) did just that in exchange for small raises. Delta simply took back a portion of the profit sharing from all other DL nonunion employees and gave them paltry raises, too.

Similar result at AA, where former management offered 15% first dollar profit sharing to all employees in its bankruptcy term sheets (the concession demands) but the AA pilots traded away 2/3 of that (10%) in exchange for small raises.

All other AA employees lost the same percentage of profit sharing due to "me-too" clauses that were designed to treat all employee groups fairly. So they lost 2/3 of their profit sharing potential and gained small raises. Since bankruptcy, some AA employee groups have traded away their last third (5%) profit sharing, meaning they won't get anything from this years' expected $3 billion to $4 billion profit at AA.

Negotiate raises, sure, but never trade away participation in profits. Fools.
FWAAA is offline  
Old Jul 23, 2014, 12:41 pm
  #38  
 
Join Date: Dec 2008
Location: Mostly living in the basement
Programs: Newly minted free agent; MR LT(!)TE, HH SE, BA SECM, DL MM, UA PS, 2V Fanboi, CBP GE
Posts: 5,108
Originally Posted by ClipperDelta
Sure did! The NYC transcons showed double-digit PRASM gains during the quarter despite a 12% capacity increase
And yet there is some evidence of a rollback on the TCON UG policy change.

I'd like to see a breakdown on the numbers... my anecdotal experience is that Y tickets are way more expensive than before while J tickets (not counting the corporate discounts) are perhaps stable.
bennos is offline  
Old Jul 23, 2014, 12:52 pm
  #39  
Original Poster
 
Join Date: Jul 2004
Programs: DL; AA; UA; CO; LHLX; NZ; QR; EK; BA
Posts: 7,408
Originally Posted by FWAAA
Delta simply took back a portion of the profit sharing from all other DL nonunion employees and gave them paltry raises, too.
.
Delta actually did an internal poll with its non-union employees - asking them if they would prefer a raise (and reduction in profit sharing) or no raise (and higher profit sharing)...they chose to have the raise....

But I believe the revised profit sharing arrangement still kept the percentage on the top end (i.e., 20% after $2.5B of profits)....

What's amazing is that profit sharing for the first six months this year is already at 85% of last year's total profit sharing pool (Total 2013: $506m; first half of 2014: $434m). So barring unforeseen circumstances, profit sharing for 2014 could be around $900m (they are already estimating $350-$400m of profit sharing for Q3 alone).
ClipperDelta is offline  
Old Jul 23, 2014, 1:03 pm
  #40  
 
Join Date: Apr 2005
Location: New York, western US
Programs: DM/3MM
Posts: 4,246
Originally Posted by bennos
And yet there is some evidence of a rollback on the TCON UG policy change.

I'd like to see a breakdown on the numbers... my anecdotal experience is that Y tickets are way more expensive than before while J tickets (not counting the corporate discounts) are perhaps stable.
I've seen the same thing with coach fares (particularly to LA and SF), but fares seem to be quite a bit lower for this fall.
TrojanTraveler is offline  
Old Jul 23, 2014, 1:09 pm
  #41  
FlyerTalk Evangelist
 
Join Date: Sep 2007
Location: BOS
Programs: DL DM 2MM, Marriott LT Titanium, Hertz PC, Avis PC
Posts: 15,198
Originally Posted by pbarnette
Just playing off of the comments that many have written over the years about how DL is driving traffic away, etc.
rylan is offline  
Old Jul 23, 2014, 1:12 pm
  #42  
 
Join Date: Jul 2005
Location: National Capitol Region
Programs: Delta Dirt Medallion,AA,USairways, WN Rapid Rewards, National Emerald Club
Posts: 3,912
Originally Posted by FWAAA
Negotiate raises, sure, but never trade away participation in profits. Fools.
Never trade away scope, yet the Delta pilots did that too.
hazelrah is offline  
Old Jul 23, 2014, 1:18 pm
  #43  
Suspended
 
Join Date: Sep 2005
Location: SEA
Programs: UA Silver, BA Gold, DL Gold
Posts: 9,779
Originally Posted by hazelrah
Never trade away scope, yet the Delta pilots did that too.
Maybe they have actually learned that adversarial relationships are often not positive for anyone involved? I mean, it isn't like they don't have some history to tell them that overplaying their hand can doom the airline and force even worse concessions down the road.
pbarnette is offline  
Old Jul 23, 2014, 1:19 pm
  #44  
FlyerTalk Evangelist
 
Join Date: Nov 2005
Location: Phoenix, AZ
Programs: AA Gold AAdvantage Elite, Rapids Reward
Posts: 38,328
Will DL bring free checked bags back? How about 2 free checked bags for General Member?
N830MH is online now  
Old Jul 23, 2014, 1:24 pm
  #45  
Suspended
 
Join Date: Sep 2005
Location: SEA
Programs: UA Silver, BA Gold, DL Gold
Posts: 9,779
Originally Posted by N830MH
Will DL bring free checked bags back? How about 2 free checked bags for General Member?
Why would they? Charging for bags brings revenue and people don't actually seem to mind enough to factor it into their purchasing decisions. Everyone is happy. So, no, it is not going to happen.
pbarnette is offline  


Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.