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Delta Air Lines Announces $549 Million Profit Excluding Special Items (Q2 10)

Delta Air Lines Announces $549 Million Profit Excluding Special Items (Q2 10)

Old Jul 19, 10, 5:51 am
  #1  
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Thumbs up Delta Air Lines Announces $549 Million Profit Excluding Special Items (Q2 10)

Company Reports GAAP Profit of $467 Million
Jul 19, 2010

ATLANTA, July 19 /PRNewswire-FirstCall/ -- Delta Air Lines (NYSE: DAL) today reported financial results for the June 2010 quarter. Key points include:

Delta's net income for the June 2010 quarter was $549 million, or $0.65 per diluted share, excluding special items(1). This is a $748 million improvement year over year.
Delta's net income was $467 million, or $0.55 per diluted share, for the June 2010 quarter.
Results include $90 million in profit sharing expense, in recognition of Delta employees' achievements toward meeting the company's financial targets.
Delta generated more than $1 billion in operating cash flow and ended the June 2010 quarter with $6.0 billion in unrestricted liquidity.

(Logo: http://photos.prnewswire.com/prnh/20090202/DELTALOGO )

(Logo: http://www.newscom.com/cgi-bin/prnh/20090202/DELTALOGO )

"Delta's profit this quarter is our best result in a decade and proof that our plan has positioned us well as the economy begins its recovery," said Richard Anderson, Delta's chief executive officer. "These results would not have been possible without the dedication and determination of Delta people. We're happy to recognize our employees' contributions with $90 million in profit sharing."

Revenue Environment

Delta's operating revenue grew $1.2 billion, or 17% in the June 2010 quarter compared to the 2009 quarter.

Passenger revenue increased 19%, or $1.1 billion, compared to the prior year period on 1% lower capacity. Passenger unit revenue (PRASM) increased 19.4%, driven by a 17% improvement in yield and a 1.9 point improvement in load factor.
Cargo revenue increased 22%, or $38 million, on higher cargo volume and yield.
Other, net revenue increased 3%, or $24 million, primarily due to increased baggage fees.
This beats analysts estimates by $45 million. UA reports tomorrow, followed by AA and US on Wednesday; CO, US, B6 on Thursday.
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Old Jul 19, 10, 7:14 am
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Originally Posted by AAerSTL View Post
This beats analysts estimates by $45 million. UA reports tomorrow, followed by AA and US on Wednesday; CO, US, B6 on Thursday.
I suspect that this is the first in a string of very nice quarterlies to be announced this week.
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Old Jul 19, 10, 7:47 am
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profits up but stock down

Despite the financial report, DL's stock price is falling as of now this morning.

At first, I suspected that the "good news" was less than forecasts, but the report indicates that this is not the case.

My guess now is that the market expects other airlines to do even better in their reports to be released this week.
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Old Jul 19, 10, 7:56 am
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Net Profit: $467 million
Net Margin: 5.7%

Net Profit excluding Specials (merger related): $549 million
Net Margin: 6.7%

Operating Profit: $852 million
Operating Margin: 10.4%

Operating Profit excluding Specials (merger related): $934 million
Operating Margin excluding Specials: 11.4%

Operating Profit excluding Specials and Profit Sharing: $1.024 billion
Operating Margin excluding Specials and Profit Sharing: 12.5%


Originally Posted by MSPeconomist View Post
Despite the financial report, DL's stock price is falling as of now this morning.

At first, I suspected that the "good news" was less than forecasts, but the report indicates that this is not the case.

My guess now is that the market expects other airlines to do even better in their reports to be released this week.
The fall has to do with the revenue miss. Analysts expected $8.25 billion while DL came in at $8.17 billion.

For net income excluding special items, they beat estimates by 2 cents (analyst forecast 63 cents; DL came in at 65 cents).

Last edited by ClipperDelta; Jul 19, 10 at 8:16 am
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Old Jul 19, 10, 8:05 am
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Originally Posted by AAerSTL View Post
This beats analysts estimates by $45 million. UA reports tomorrow, followed by AA and US on Wednesday; CO, US, B6 on Thursday.
Originally Posted by ClipperDelta View Post
Net Profit: $467 million
Net Margin: 5.7%

Net Profit excluding Specials: $549 million
Net Margin: 6.7%

Operating Profit: $852 million
Operating Margin: 10.4%

Operating Profit excluding Specials: $934 million
Operating Margin excluding Specials: 11.4%




The fall has to do with the revenue miss. Analysts expected $8.25 billion while DL came in at $8.17 billion.

For net income excluding special items, they beat estimates by 2 cents (analyst forecast 63 cents; DL came in at 65 cents).
I haven't been following the numbers carefully, but OP claims that DL beat the analysts' predictions, although it wasn't clear whether this referred to profits, revenues, or whatever.
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Old Jul 19, 10, 8:12 am
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Originally Posted by MSPeconomist View Post
I haven't been following the numbers carefully, but OP claims that DL beat the analysts' predictions, although it wasn't clear whether this referred to profits, revenues, or whatever.
They beat on earnings but missed on revenues.
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Old Jul 19, 10, 9:09 am
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Delta makes a profit...

ATLANTA (TheStreet) - Delta(DAL) kicked off a week of airline earnings reports by reporting its best quarterly profit in a decade, and said it expects continuing unit revenue gains in the current quarter.

Delta Air Lines Incorporated| DAL DOWNThe world's largest airline set net income excluding items was $549 million, or 65 cents a share. Analysts surveyed by Thomson Reuters had estimated 63 cents. Revenue rose 17% to $8.17 billion; analysts had estimated $8.25 billion.

Including items, such as $90 million in profit-sharing expenses, net income was $467 million, or 55 cents a share. In the same quarter a year earlier, including items, the carrier lost $257 million.

"Delta's profit this quarter is our best result in a decade and proof that our plan has positioned us well as the economy begins its recovery," said CEO Richard Anderson, in a prepared statement Monday. Passenger revenue per available seat mile rose 19.4%, led by a 36% PRASM increase in the Pacific and a 30% increase in the Atlantic.
Looking ahead, President Ed Bastian said the carrier also expects double-digit PRASM gains for the current quarter. "We are seeing strong improvements in these early stages of the economic recovery and believe there's more room for more revenue growth as the economy continues to stabilize," he said.

On the cost side, cost per available seat mile excluding fuel and special items was flat during the quarter, despite 1% lower capacity. "Merger synergies and productivity offset cost pressures in the business," said CFO Hank Halter. "Synergies have exceeded our expectations and will be a key factor as we strive to keep our non-fuel unit costs flat for the full year."

As of June 30, the carrier had $6 billion in unrestricted liquidity including $4.4 billion in cash.

http://www.thestreet.com/_yahoo/stor...FREE&cm_ite=NA
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Old Jul 19, 10, 9:31 am
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Delta should be making a profit. My net ticket price, on a comparable trip basis, has increassed by 34% year-to-year.
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Old Jul 19, 10, 9:40 am
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They need to reinvest most of that profit to getting planes off the ground instead of being delayed/cancelled for Mech issues.


My last SIX reservations have had at least one IRROP due to mechanical.
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Old Jul 19, 10, 10:34 am
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dal is making a profit because it is short changing its elites?
dal is missing the revenue because some elites stop flying with delta?
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Old Jul 19, 10, 11:28 am
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Round of applause to DL
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Old Jul 19, 10, 11:38 am
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"Big Air" is killing us. How dare they swim in half a BILLION dollars in profit and have the nerve to charge $350 RT BOS-LAX! I have read here in this forum that it is "impossible" for an airline to make a profit on discount Y tickets....hmm, the "blend" must be working.
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Old Jul 19, 10, 11:45 am
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Originally Posted by tvnwz View Post
Delta should be making a profit. My net ticket price, on a comparable trip basis, has increassed by 34% year-to-year.
Not to mention the $1,500 they made off of me in change fees during that quarter!
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Old Jul 19, 10, 11:49 am
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Originally Posted by pbd456 View Post
dal is making a profit because it is short changing its elites?
dal is missing the revenue because some elites stop flying with delta?
Yep, the fake cheese is really costing them.
Or maybe, just maybe, the Wall Street forecasts and econometric models that helped deliver the current economy were flawed in this case, too.
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Old Jul 19, 10, 11:52 am
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Originally Posted by pbd456 View Post
dal is making a profit because it is short changing its elites?
dal is missing the revenue because some elites stop flying with delta?
+1
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