Delta Air Lines Reports Quarterly Profit

 
Old Jul 17, 03, 6:33 am
  #1  
doc
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Delta Air Lines Reports Quarterly Profit

Delta Air Lines Reports Quarterly Profit

http://biz.yahoo.com/rb/030717/airli...a_earns_1.html


---

Delta Swings to Profit, Helped by Aid

http://biz.yahoo.com/rb/030717/airli...a_earns_2.html


[This message has been edited by doc (edited 07-17-2003).]
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Old Jul 17, 03, 7:21 am
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Did that include 25.5 million for 2002 and 19.9 million for executive benefits in 2003??? Oh, and I forgot about the bonuses!
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Old Jul 17, 03, 7:55 am
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by vetteset:
Did that include 25.5 million for 2002 and 19.9 million for executive benefits in 2003??? Oh, and I forgot about the bonuses!</font>
Vetteset, would you chill out! Just be thankful there is some good news for a change!! Did that include the million dollar pension plan for our pilots? I didn't like the executive bonuses either but let's move on...
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Old Jul 17, 03, 8:16 am
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No, I'm sorry I cant chill out! There are flight attendant, pilots, gate agents on the streets. I have talked to many of them on their last flights and they are loyal to our company and passengers. I know many 30 year flight attendants who took a leave after 9/11 to help the company out, and are still not back to work. I see our passengers not be treated very well. I see LOYAL FF's defecting to other airlines not because of our staff, but the changes our management has enacted. Our passengers are leaving because they pay good money for a ticket and they are not getting their worth at Delta. The comapny has taken too much from our pax and employees and it has ruined our morale. So, in other words, I will NOT chill out!
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Old Jul 17, 03, 8:41 am
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by vetteset:
No, I'm sorry I cant chill out! There are flight attendant, pilots, gate agents on the streets. </font>
They are not alone. A lot of companies have ex-employees still out of work.

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Old Jul 17, 03, 8:49 am
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by vetteset:
No, I'm sorry I can't chill out! There are flight attendant, pilots, gate agents on the streets. I have talked to many of them on their last flights and they are loyal to our company and passengers. I know many 30 year flight attendants who took a leave after 9/11 to help the company out, and are still not back to work. I see our passengers not be treated very well. I see LOYAL FF's defecting to other airlines not because of our staff, but the changes our management has enacted. Our passengers are leaving because they pay good money for a ticket and they are not getting their worth at Delta. The company has taken too much from our pax and employees and it has ruined our morale. So, in other words, I will NOT chill out!</font>

vetteset...well stated post. Actually, IMO, the employees at DL have taken the worst hit so far in DL's cost reduction drive. The pax are seeing some evidence of the changes to come but the full force of the proposed SM's changes are yet to be seen.
Here's a short quote from the article that's alarming to me as a passenger:

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">The airline said last month it intends to trim $2.5 billion in costs by the end of 2005 through a number of measures that do not include job cuts.</font>
I have to believe these cost cuts will more directly involve the flying public than what we have experienced thus far. Having seen DL chip away at the SM's program incrementally over the last few years, I can only imagine what surprises they have in store for those of us still flying them next year and beyond....

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Old Jul 17, 03, 10:22 am
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by doc:
Delta Air Lines Reports Quarterly Profit

http://biz.yahoo.com/rb/030717/airli...a_earns_1.html


---

Delta Swings to Profit, Helped by Aid

http://biz.yahoo.com/rb/030717/airli...a_earns_2.html


[This message has been edited by doc (edited 07-17-2003).]
</font>
I think you guys are missing the point that Delta only turned a profit due to government aid.

Other wise they still had a huge loss.

Also if i read it correctly the profit they reported (w/ government aid) was 184$ is that right?

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Old Jul 17, 03, 1:50 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by beofotch:
I think you guys are missing the point that Delta only turned a profit due to government aid.

Other wise they still had a huge loss.

Also if i read it correctly the profit they reported (w/ government aid) was 184$ is that right?

</font>
Delta reported a profit of $184 million.

All of the major airlines received government money this quarter. Delta also sold its stake in Worldspan for $285 million on June 30. That sale alone was bigger than Delta's reported profit. They are already forecasting big losses for the third quarter. Whether they are just trying to lower expectations is anybody's guess. It certainly wouldn't do for them to appear to be making money while trying to wring concessions out of the pilots.

[This message has been edited by Kubla (edited 07-17-2003).]
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Old Jul 17, 03, 4:22 pm
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Vetteset: If I were you I would NOT chill out! Your points are valid and you have a reason to be upset.
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Old Jul 17, 03, 4:37 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by vetteset:
No, I'm sorry I cant chill out! There are flight attendant, pilots, gate agents on the streets. I have talked to many of them on their last flights and they are loyal to our company and passengers. I know many 30 year flight attendants who took a leave after 9/11 to help the company out, and are still not back to work. I see our passengers not be treated very well. I see LOYAL FF's defecting to other airlines not because of our staff, but the changes our management has enacted. Our passengers are leaving because they pay good money for a ticket and they are not getting their worth at Delta. The comapny has taken too much from our pax and employees and it has ruined our morale. So, in other words, I will NOT chill out!</font>
Then don't chill out. Do what you must. There are alot of people out of work because of this economy. As I stated before, the executive bonuses sucked..we can all agree on that. But the bonuses alone will not bring anyone off the street. There is STILL overcapacity and pax are not spending what they once did. Unfortunately, we as well as the other hub carriers have to trim capacity to meet demand. Yes, some of our pax are fleeing because of various reasons. Leo has drawn a line in the sand. We will all see if the gamble pays off. If it does, do not be surprised if other majors follow suit. Just my humble opinion.
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Old Jul 17, 03, 4:52 pm
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by beofotch:
I think you guys are missing the point that Delta only turned a profit due to government aid.</font>
Depends on how you look at it. The government and airlines claim/spin it as a "reimbursement" for the numerous costs which have appeared since Sept11/SARS/GulfWar2.

Without the added security and other such costs, CO would certainly have been profitable this quarter on its own, and others may have as well... so a point can be made from this.

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Old Jul 18, 03, 11:20 am
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Delta shares slip as analysts widen loss forecasts


http://biz.yahoo.com/rc/030718/airli..._stocks_1.html
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Old Jul 18, 03, 3:10 pm
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consider this...that government bailout money is OUR money. It came from us, the taxpayers.

DL (and others) took that money...used it to prop up profits (and thus the stock price) on the books, and will be using portions of it for executive bonuses and parachute packages.

Vetteset is right. It makes me burn even more when I consider that any portion of my tax dollars went to artificially prop up someone's corporate bottom line, and then was slid in some undeserving executive's wallet as extra income.

If DL (or CO, or anyone else) posted profits this quarter without including the bailout, then I would be impressed...but this is nothing but a sham; factor in that they are using our tax dollars to do it, makes it even worse.

777 does have a point, but I dont think the airlines would have posted profits (or if they did, they would have been significantly smaller when compared to the late 90s) without the bailout. They core problems still exist, and include -

1. spastic and wild cost cutting from the "flight product", with very little emphasis on removing excess spending from the 'business operation' side first
2. migration of high-yield business travelers to lower fares or discount carriers
3. higher fuel costs
4. reduction in overall passenger volume due to the 'hassle factor'

bailout or no bailout, the industry still has alot of serious problems.

[This message has been edited by bocastephen (edited 07-18-2003).]
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